Today, in the international market, integration of economies, technology-based productions, and globalization of information bring the notion of “competition” to the agenda. Division of labor desires to specialize and get more shares from production makes competition more effective. These situations have deeply affected the political and legal structures surrounding all business relations. How we understand these situations?
Understanding this complex structure by analyzing the structures that dominate all over the world. Obviously, the competition policies of the countries have affected the earnings of the enterprises. Therefore, the enterprises have cooperated to become global power with cartel agreements. In context of cartel agreements, both companies, capital owners and consumers, who are affected by increasing prices, suffer from the process. So, existence of Competition Law is to prevent this victimization.
In my opinion, it’s necessary to cooperate in the fields of economy and other law fields, also to deal with agreements between the enterprises which carry risk of preventing competition by the regulatory institutions, and to deal with cartelization that can be established for the sale of products like nutrients and medicines that are necessary for all humanity.
Firstly, there are reasons why economics, and other law fields cooperate. Cartel structures are collusion because of their nature. It’s getting harder to reveal them and applicate sanctions. In this case, the inadequacy of institutions to investigate violations and the economic power of international cartel agreements have an effect. One more reason, there are various problems caused by specific fields such as IT law in competition law. Collaboration is essential for solving.
Secondly, restrictive agreements between enterprises that carry the risk of preventing competition should be handled by regulatory agencies. Examples of this problem are price immobilization, bid rigging, and market sharing. In this way, high pricing reflected on consumers undermines competition and reduces welfare. In addition, some sectors, require government regulations to facilitate the transition to competition. For example, telecommunications etc. These regulations can be implemented in order to reduce the obstacles to market entry, to impose additional obligations on the incumbent operator and to eliminate violations that prevent competition.
Thirdly, cartelization that can be established for the sale of products such as nutrients and medicines which necessary for all humanity should be focused on. Thus, competition law will become more functional all over the world. It will also minimize more by affecting large segments. So, consumer welfare will be increased significantly by observing from the first step to the last step of the production chain worldwide.
In conclusion, economists have been focusing on the notion of competition and its benefits from past to present. Competition reduces prices and fosters sustainability and innovation. Also, with the providing competitive environment, the understanding of cost and service develops. Observing the demands of consumers and the behavior of competitors is possible in markets where competition develops. For these reasons, it is essential to control the world economy through competition.
SOURCES, ARTICLES
- CAMMACK, Paul ( Vol. 1, 2006) The Politics of Global Competitiveness, Papers in the Politics of Global Competitiveness
- Managing Firm Competitiveness in Global Markets, July 2006
- Küreselleşme, Kapitalizm ve Rekabet Hukuku İlişkisi, Murat Şahin, Hande Şahin
- SABIR, Hasan Küreselleşen Dünyada Rekabet Politikası ve Gelişmekte Olan Ülkeler
