Objectives of policy of economic concentration control Sample Clauses

Objectives of policy of economic concentration control. Economic concentration control policy is an important part of overall policies issued by Government, including public, economic policies and competition policy. In the scope of this research, the research team would like to focus on analyzing policy of economic concentration control as branch of competition policy. As competition perspectives, core objectives of policy of economic concentration control is to facilitate merger cases that are not or are not capable of causing potential negative effects to harm competition on the market. Being integral part of competition policy in general, policy of economic concentration is specifically regulated as one of three main objectives of competition law, including (1) competition restriction agreement, (2) abusing the dominant/monopoly position and (3) economic concentration control. Regulation on economic concentration is for pre-check, for preventing merger cases which are capable of harming competition. Meanwhile, regulations on the acts of competition restriction agreement and abuse of the dominant/monopoly position are for after-check, handling with the acts which harm competition. The necessity of economic concentration regulation by competition law to prevent merger cases that cause potential xxxxx to competition is for two following reasons: - First, economic concentration would immediately terminate competition pressure among concerned parties and reduce the number of rivals in the market. When competition elimination effects are big enough, the market will lose economic efficiency, and in some cases, enterprises established after the economic concentration does not need to make the violation of the after-check provisions of competition law and still be able to eliminate the competition and to get profit from the market. - Second, effectiveness of competition law practice is not 100%. It is very difficult to recognize and prove the acts of competition law violations. Competition law practicing pressure would be reduced by controlling economic concentration in pre- check stage. Even when remedy could be implemented in after-check stage in case of bad effects to competition from economic concentration, cost is big. In short, economic concentration control policy is to prevent market structure changes which could lead to damage competitive motivation, then decline consumers‘ interest and economic efficiency.
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