OLIGOPOLISTIC COMPETITION

Oligopolistic Competition



Abstract

EU law prohibits cartels TFEU 101 bar. This is used to describe almost anyone "engaged in economic activities", but does not include employees of both parties, who are their public services. Solidarity is based on the natural state of economic or commercial activity which is relatively independent movement. Social purpose corresponds to the formation of the business must have an agreement to develop a cooperative behavior, or an association, such as the United States decided to take anti-monopoly, it just means all the same thing. It is a handshake from a powerful written or oral agreement, the supplier sent the invoice with the direction that it does not export the retailers who acquiescence of the conduct of the entire range of behavior. According to Section 101 (1) “All agreements between enterprises, from operators and a consistent approach, which may affect trade between Member States and have as their object or effect the prevention, restriction or distortion of competition within the common market association's decision.”

Introduction

Antitrust (competition) policy of EU is a key element in enhancing the competitiveness of domestic companies in all sectors of the economy. The conditions of interaction of economic agents and their relative sizes in a modern market economy are determined by propensity to invest and innovate.

Thus, competition policy has a direct impact on the socio-economic development: production volumes, productivity, prices, corporate profits and tax revenue, investment, economic growth and competitiveness of businesses in global markets. Moreover, competition law should apply in such a way as to promote both consumer welfare and efficient allocation of resources with limited access, as well as promote economic growth in the state in general, addressing social, environmental and other problems.

The modern world economy characterized by globalization of production and trade, the consolidation of assets in the leading fields of economy, transferring production facilities to regions with low operating costs and the dominance of powerful multinational corporations. Competitive economy forms a competitive company, and the competitiveness of national economies in the world market depends on the financial power. Despite its international status, authorities have a definite country of registration or in a broader sense in a country home where you would normally and accumulated profits, the vast majority of taxes paid, concentrated managerial and scientific potential.

But back to domestic realities of April 10, 2008 when the Verkhovna Rada of Ukraine ratified the protocol of accession of country to the World Trade Organization. Also, authorities are constantly expressing their interest in establishing a free trade zone with the EU countries and the CIS. But these processes of integration of Ukraine into the global economy can be effective only if the appropriate changes in antitrust law, which today in many ways more stringent than the laws of most countries of the world, including countries of the EU and the Russian Federation.

Acting in Ukraine, antitrust law is based on an outdated German model, which in modern conditions has long lost its relevance and is not used in any ...