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Competition and Competition Policy - Essay Example

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This paper Competition and Competition Policy is an advisory to Blue Peer Plc, a major supplier of alcoholic and non-alcoholic beer in the United Kingdom. The company intends to acquire or merge with other competitors in order to have a major market share in the country. …
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Competition and Competition Policy
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Competition and Competition Policy

Download file to see previous pages... As the essay discusses Blue Beer plc is an important producer of beer in Newcastle. Statistics shown that Blue Beer plc accounts for some 12% of all beer sold in the United Kingdom but that its Bluelite plc is especially successful and accounts for 40% of all non-alcoholic beer consumed in the UK. Blue Beer has been negotiating with County Beers Ltd with a view to merger. County Beers is the principal other producer of non-alcoholic beers and after merger the new company, British County Blue, will control 65% of the market in non-alcoholic bee.
According to the paper findings the overall policy of the European Union of competitive practices is as follows – “In a free market, business is a competitive game. Sometimes, companies may be tempted to avoid competing with each other and try to set their own rules for the game. At times, a major player in the game may try to squeeze its competitors out of the market. The European Commission acts as the referee to ensure that all companies play by the same rules. This discussion stresses that markets started being highly competitive and this forced businesses to pursue ways and means to survive and grow. Price cutting, mergers and acquisitions, and formation of cartels began to be accepted as a way to keep away competition. Monopolies or monopolistic tendencies began to be seen in the market creating unfair competition for smaller players. ...Download file to see next pagesRead More
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