Competition. Goals and forms of antimonopoly regulation (the most important)

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Competition. Goals and forms of antimonopoly regulation (the most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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16. Goals and forms of antimonopoly regulation

Antimonopoly regulation includes:

1. administrative control over monopolized markets;

2. organizational mechanism;

3. antimonopoly law.

Administrative control monopolized markets combines ways to influence monopolized production. It is possible to identify, in particular, financial sanctions applied in case of violation of antitrust laws.

Organizational mechanism aims at antimonopoly prevention through consistent market liberalization. Without affecting the monopoly as a form of production, the methods and methods of such state policy are aimed at making monopolistic behavior unprofitable for big business. These are the reduction of customs duties, the abolition of quantitative quotas, support for small businesses, simplification of the licensing procedure, optimization of production, etc.

Antitrust Law - this is the most effective and developed form of state regulation of monopoly power. Its goal is to regulate the structure of the industry by prohibiting the proposed mergers of large firms if it leads to a significant weakening of competition or the establishment of a monopoly. Antimonopoly practice does not deny the possibility of merging companies on a "horizontal" and "vertical" basis.

Special antimonopoly policy and antimonopoly legislation made it possible to control the processes of monopolization, maintain and strengthen competition.

The ideal, from an economist's point of view, would be an antitrust policy aimed only at ensuring the welfare of consumers by protecting and enhancing competition. Existing antitrust laws, like all others, are prepared by politicians, enforced by lawyers, and interpreted by judges.

With the help of state regulation of the economy and various antimonopoly measures of an official and unofficial nature, it is possible to achieve what factors that automatically act in conditions of free competition that counteract the influence of monopolies or balance them cannot provide.

Antimonopoly policy is not aimed at eliminating or banning large monopoly formations, since society has long understood that a monopoly, as one of the main factors in profit growth, cannot be "tamed". Therefore, the main task is to put it under state control, to eliminate the possibility of abuse of a monopoly position.

The two main forms of fighting monopolies are:

1) prevention of the creation of monopolies;

2) preventing the use of monopoly power.

Author: Ilyina V.N.

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