How it influences markets and cartels

Responsible for enforcing competition laws. Responsible for stopping competition damaging businesses, such as cartels. Part of this is the competition commision

Independent public body which conducts research into mergers, markets and the regulation of major industries. Ensures healthy competition between producers in the market. The OFT also use the competition act 1998 to regulate a healthy market share.

reates a framework in the market which makes it hard for firms to create monopolistic characteristics. Anti-competitive agreements, Cartels are now illegal from the outset. This is U.K legislation.

Concerted practices which may effect trade or distort competition in common market Price Fixing Limit production Share Sources of supply Force agreements to be accepted by offering incentives

Any abuse as a result of being in a dominant position in the market

Directly or Indirectly imposing unfair buying/selling prices Limiting production Applying different trading conditions to similar transactions to other parties Making contracts subject to acceptance by making them have supplementary obligations

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Asda and Sainsburys colluded with other firms and increased prices in order to make shoppers pay more for cheese and milk. As a result the OFT has fined both firms large amounts (up to 116m) Tescos may be fined up to 10% of their turnover