Delivering for consumers

Why does competition policy matter?

Competition policy is about applying rules to make sure that businesses and companies compete fairly with each other. It has many positive effects:

• encouraging enterprise and efficiency
• widening consumer choice
• helping deliver lower prices and higher quality.

What are the benefits?

Low prices for all

The simplest way of achieving high market share is to offer a better price. In a competitive market, prices are pushed down.

Not only is this good for consumers - when more people can afford to buy products, it encourages businesses to produce and boosts the economy in general.

Better quality

Competition also encourages businesses to improve the quality of goods and services they sell – to attract more customers and expand market share. Quality can mean various things:

• products that last longer or work better
• better after-sales or technical support
• friendlier and better service

More choice

In a competitive market, businesses will try to make their products different from the rest. This results in greater choice – so consumers can select the product that offers the right balance between price and quality for them.

Innovation

To deliver this choice, and produce better products, businesses need to be innovative – in their product concepts, design, production techniques, services etc..

Better competitors in global markets

Competition within the EU helps make European companies stronger outside the EU too – and able to hold their own against global competitors.

And what’s your role in all this?

Believe it or not, you are a key player in keeping businesses competitive - your choice of which product to buy ultimately sets the direction that companies take.

And by staying informed - and reporting companies you think are not acting in a fair, competitive manner – you can do your bit to ensure businesses keep delivering more choice, quality, innovation and lower prices.