The Legal Nature of Competition

Authors

Muhammad Bani Miqdad, University of Tabuk, Kingdom of Saudi ArabiaFollow

Abstract

Competition is the cornerstone of the liberal market economy on essential mechanism for durability because of the various benefits it create for the different market stakeholders, including consumers and producers, and the optimum utilization of available resources. Under competition, everyone is free to practice the commercial activity he wish, to choose the place of entity and nature of activity. Competition means the free working of market mechanisms as represented by demand/supply between producers and consumers, the freedom of getting into market and trading honestly and transparently in commercial transactions. Unfair competition is when a trader follows unlawful or trickery I means to attract clients and customers of other. The government may interfere to create fair competition and protect consumers, while in the same time safeguarding the conditions related to public interest. The major reason for monopoly is lack of competition and existence of hindrances and constraints, thus the dominating firms have monopoly power. Hindrances are both natural and legal. The later include concessions as privileged by government licenses. The judicial control is practiced to make sure compliance with the competition law by settling the cases in violation of law

Recommended Citation

Bani Miqdad, Muhammad (2015) "The Legal Nature of Competition," Jerash for Research and Studies Journal مجلة جرش للبحوث والدراسات: Vol. 16: Iss. 2, Article 4.
Available at: https://digitalcommons.aaru.edu.jo/jpu/vol16/iss2/4