1/ Definition of competition law:
In principle, free competition is simply Darwin's theory applied to the business world. Therefore, competition can be brutal, unsightly, unbalanced, etc., in many ways.
But competition can also be a source of balance and peace for consumers, but not only for them, and especially for companies that are not ranked first. Why? Well, without free competition, there would only be state-owned or non-state monopolies, state-owned or non-state oligopolies, etc., concentrated groups or other conglomerates. Free competition, in theory and in practice, allows anyone to emerge, provided they have the right product or service. Moreover, despite the fact that state antitrust institutions have been established, as in France, for example, with the competition authority, in reality these authorities serve no purpose. To take a simple example, through corporate membership contracts or other, more specifically, exclusivity contracts, licensing agreements, brand licensing agreements, etc., prices are fixed in France, but everywhere else on the planet by large companies. For example, everywhere in France, the Mac mini M4 costs €699, give or take a few dozen euros.
In fact, for a consumer, the only option is to move for other country, case on case, to compare and find better prices : exempli gratia, tobacco in spain rather than France, or to go back to Mac Mini M4, the better is to buy it in Switzerland for more or less : 570 CHF. But it's not practice nor perfect because currency rates for Switzerland and traverl costs for Spain. And the European Union regulatory decide the least saying because the market and neither efficient nor maximized. Here is for instance, a pool of benefit for consumer.
2/ History and hierarchy:
History in France: The Le Chapelier Law of 1791 prohibits members of the same corporation from joining together for the purpose of regulating in their own interests. The Criminal Code reiterated this prohibition by prohibiting coalitions to manipulate prices "above or below what would have been determined by free and natural competition," Article 419 of the Criminal Code.
Hierarchy: This area includes everything:
1/ De jure or de facto monopoly: trust or cartel
2/ De jure or de facto oligopoly
3/ Conglomerate
4/ Concentrated groups
But the practice does that the price are always manipulated and handled by that companies. The best is to see and observe the market to compare and find logical problem in my opinion.
3/ What do I mean when I say that prices are fixed:
?
Well, quite simply, as always, as I've said, the fact is that there is no real competition; the game is distorted like everything else on this planet. This prevents any major development and innovation. The only changes are often the work of monopolies or oligopolies, or other conglomerates or concentrated groups. If not them, then it's the work of small businesses endorsed by them. Otherwise, there's no salvation for anyone else. Thus, large companies retain control and stability, money and power, with the blessing of states, which benefit from it in terms of stability, relative peace, etc.
But what about employment, pricing policy, human well-being, etc.? Well, these are not taken into account in the concerns of large companies and states.
It must be understood that states love large companies:
They discuss among equals
They are the source of gigantic profits and therefore of all kinds of taxes
They are a guarantee of stability and budgetary visibility
They are the standard-bearer internationally
4/ What solution?
As always, there are solutions, but this is neither the time nor the moment for the article, as I'm reminding you, the title is Competition & Definition.
Once the foundations are laid, there will always be time to get to the real facts.
To conclude :
It's very interesting to consider the position of FTC § Federal Trade Commission to redistribute (See refunds program) money for consumer. It's goal to reach a better health, criminal decision for companies, and the will to developp and to spread enforcement rather than, to decide more.
and it's a very good position, work with the existing rules, policy and regulations rather than to edict new rules.
Author
Vidal Bravo - Jandia Miguel
Ingineer - Master II in law
Montpellier I - Consumer Law Center - Training and Research Unit
Paris II / Panthéon - Assas