What, if any, is the difference between a competition policy and an industrial policy?

What, if any, is the difference between a competition policy and an industrial policy?

The five pillars of the pillar the EU?s competition policy is as follows. * Antitrust & cartels. * Merger Controls * Market Liberalisation * State aid control * International cooperation. What are cartels how do they affect the economy?

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A cartel is a group of similar independent firms which come to an agreement to distort prices, the prices rise but this isn?t done as a reflection of supply, demand or quality. The cartels see an increase in profits and keep the same market share.

This breaks EU competition law a break in this law can see firms hit with heavy fines from the European commission.

Due to the difficult nature to prove this an incentive was brought forward for firms to come clean this is known as the ? leniency policy? the first company out of the cartel to come clean & providing evidence against other members . …

An example of one huge benefit which has come from the freedom of choice would be low cost airlines. This has made Europe an incredible small place your summer holidays no longer take all year to save for, the increased competition in the

airline industry has led to firms like Ryanair eating into BA once monopoly over the market. State Aid is generally prohibited but there are certain conditions which allow for it these are some cases which don?t allow for it. An intervention by the state example would be tax reliefs, grants and holding of part or all of the company.

The intervention has affected trade between member states thus distorting competition. When is state aid allowed? State aid is allowed when promoting small or medium sized enterprises, these starts up grants are key to providing local jobs.

Research & development are key increasing productivity innovation in technology and medical treatments is what keeps western economies are the worlds powerhouse economies.

Also when consumers interests put at risk like a bank on the brink of liquidation unab