Competition authority to receive broader powers to break up dominant firms
At its regular cabinet meeting earlier today, Friday March 26 2010, the government agreed to pass a new bill by the Minister for Economic Affairs, amending existing competition legislation to both government parliamentary groups and Parliament. According to the bill the Competition Authority will receive broader powers to act in cases where a market dominant firm or market structure prevents or hinders competition. The Competition Authority will thus have the power to break up a market dominant firm even when no specific prohibitory provisions have been violated.
Experience shows that in certain cases firms can obtain and hold a dominant position which may restrict competition severely even when an illegal merger or other act prohibited by law has taken place. The distortive effects on competition can be as damaging to consumers as direct violations of competition law and the act is intended to give authorities the ability to respond accordingly.