In the current capitalist
markets is essential the concept of free competition which relates to
free enterprise, pricing, market expansion and not abuse of monopoly or
economic activity.
It is a basic resource for
achieving some cheaper products because companies with the aim of
increasing the number of customers in front of their rivals must strive to
improve their services and reduce the price.
Legislation
Article 38 of the Spanish
Constitution adopted in 1978 recognizes freedom of enterprise. Since this article have
developed various laws to regulate the concept of free competition.
Law 15/2007 on July 3 is the one that
currently governs these issues in the Spanish state. One of the major changes that
was introduced to replace and group agencies Service and Competition
Tribunal de Defensa de la Competencia by a single agency, the National
Commission on Competition.
European legislation
Apart from the legislation
itself, are also mandatory European standards in this regard. These laws complement to the
Spanish.
In some important issues as
the major concentrations of business is bound to inform the European Commission,
whose decision is binding.
National Commission on Competition
It is an independent
government agency that monitors compliance with the law by both public entities
and private.
Its functions include:
·
Conducting studies on the
state of competition among companies.
· Controlling the intervention
of the government in the market situation.
· Reporting on the plans,
laws, violations committed by businesses, opening files and anything that might
be of interest to citizens.
· To monitor the possible
merger of companies that can disrupt the functioning of the market and harm
consumers.
Objectives of the law of free
competition
What pursues both Spanish
legislation such as the European Economic Community is to improve the
market conditions in terms of prices, production, distribution and
remuneration of employees.
In order to accomplish the
above objectives prohibits inter alia:
· Agreements between companies
for fixing prices.
· The abuse by large
corporations at the expense of small businesses.
· Agreements between companies
to share the market.
· The mergers or acquisitions
involving the monopoly of a particular sector or likely to impair the market
situation.
|
