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INTRODUCTION TO
COMPETITION LAW
Self-Study Module #1
Why is Competition
the government building four (4)
new schools instead of five (5), or
Important?
substandard roads and bridges,
to give some examples. With
competition, this can be prevented.
Consumers win with competition healthy competition, consumers will
When a market is competitive, ultimately win. WHY COMPETITION
businesses will have greater Competition helps the poor1 MATTERS FOR
incentives to lower prices, to improve
Markets with enough competition ECONOMIC GROWTH2
the quality of their products and
benefit the poor directly. First, a
services, and to provide buyers with
competitive market can provide “Competition plays a crucial
more options. That is, businesses
goods and services at the lowest role, which is also theoretically
will need to innovate to make their
possible price, with a wide array well-founded, in promoting
products different and better than
of choices, and in an environment productivity and innovation as
the rest.
where innovation can thrive. drivers of economic growth. This
Consequently, lower prices of means that competition policy,
This means that the poor can
goods and services will mean more which intensifies competition,
afford more with their income. Even
purchasing power for Filipinos, which will stimulate growth.”
if their incomes do not increase,
would, in turn, boost the economy
their well-being can still improve. It Cont’d. next page>>
and improve quality of life.
can mean the difference between a 1
See “Why Is Competition Important For Growth
Simply put, in a market with family being hungry because food and Poverty Reduction?” by Nick Godfrey. Global
Forum VII on International Investment, OECD
prices are too high, or being food (27-28 March 2008).
*Disclaimer: This self-study module is meant only as an introduction, and for general information 2
Excerpts from “The Contribution of Competition
purposes. It is not a substitute for the Philippine Competition Act (PCA) or its Implementing Rules and Policy to Growth and the EU 2020 Strategy.” Policy
Regulations. It should not be taken as legal advice. Department A: Economic and Scientific Policy,
European Parliament. (July 2013).
AN INTRODUCTION TO COMPETITION LAW
2 Self-Study Module #1
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