Competition authorities need to consider proposed mergers between firms to ensure that a new, merged firm will not have monopoly power
On 1 April 2014 primary responsibility for UK competition policy moved from the Office of Fair Trading (OFT) and the Competition Commission (CC) to the new Competition and Markets Authority (CMA). This article first shows how microeconomic theory helps us understand the need for competition policy, before going on to describe the main features of the new UK competition policy regime and corresponding EU competition policies.
To understand theory on competition, we can compare the two most extreme industry structures: perfect competition and monopoly.
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