The Basics of Antitrust Policy: A Review of Ten Nations and the European Communities

Competition policy, known in the United States as antitrust policy, is designed to preserve competition among independent buyers and sellers in relatively unregulated markets. The movement toward economic liberalization around the world has created a growing awareness of competition policy as a means of supporting efficient markets. Competition policy strives to ensure that barriers to competition and trade, once removed by the State, are not resurrected by private action. This paper discusses the central notions of industrial organization and competition policy in an international context. The need for brevity prevents a comprehensive review of the country-specific principles of antitrust policy, law, and enforcement. Instead, the paper describes the main concepts of industrial organization as they apply to antitrust and shows the diversity of antitrust policies in design and practice, illustrating the theoretical and practical strengths and weaknesses of the various approaches to antitrust. The paper also discusses the relationship between competition policy and industrial and trade policies.