Business Law: Monopoly, Anti-Competition Practices and Regulations

This report delves into the realm of UK business law, specifically examining monopolies, anti-competitive practices, and dominant market positions. It begins by defining monopolies and their impact on the market, followed by an overview of the Competition Act 1998 and its role in protecting consumers. The report further explores the functions of the Competition Commission and the definition of dominant positions within the EU common market, providing illustrative examples. It also discusses exemptions under EU law related to anti-competitive behavior, such as individual, block, and parallel exemptions, using the United Brand case as an example. This report provides a comprehensive understanding of the legal frameworks governing competition and market dynamics in the UK and EU.

BUSINESS LAW
TASK 3

3.1 Explaining monopolies and anti
competition practice legislation in
UK.
Monopoly:
 It is that organisation or company which is working within
market and also having most of market under their control that
company is also the biggest threat to all others who are
operating in that market.
 That company in market should be having about 25% of market
share only at that position it will be called to as monopoly firm.

CONTINUED...
Competition Act of UK 1998
 Will be providing protection to consumers in market with the high
level of competition which would b resulting in increased in price and
also quality of that product would be decreased.
 In this way that firm which is having more than 25% of market share
would also b the single supplier of product and having larger control
over market this is also called as scale or complex monopolies.
 As per the new provisions which have been added into this will b e
prohibiting anti competitive practice and abuse of dominant position
within market

3.2 Explaining role of competition commission
in monopolies and anti competition practice.
Competition Act of 1998
 Was replaced with monopolies and merger
commission which from 2014 is known to as
Competition and market authority which was
amended by competition commission in
2009.

3.3 Define dominant positions within
EU common market with examples.
Dominant position-
 This is defined to as if any company in market is having over or
above 50% of market share then that firm would be known to be
having dominant position in market.
 That firm is not allowed to misuse their power by abusing others
in market or even to customers as this is regarded to as illegal in
UK.
 If that firm or group of firms are misusing their power they
would be capable of standing alone thus wiping out others small
firm from market.

3.4 Considering examples under EU law and
exemptions will be made potentially anti
competitive.
If any company is been found guilty of abusing and misusing their
power as dominant position then they are having some exemptions
which would be as follows:
 Individual exemptions
 Block exemptions
 Parallel exemptions
So in the case of United Brand they were not exempted from
any of the above mentioned exemptions court declared that they
were found guilty of abusing customers by not supplying bananas
in market to customers.

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