Policy implications of the globalization of competition law -Part 1

Is the spread of competition law around the world a success of economic policy? There are many factors to consider in answering this question. On the positive side, the proliferation of the competition law system in recent decades has produced some significant practical benefits. The implementation of the competition law has clearly won support for the free market, a key element of economic development. International economic institutions, especially the ICN, have established contacts among competition officials around the world, thereby laying the foundation for future cooperation. Large cartels that clearly harm consumer welfare have been successfully detected and prosecuted all over the world, and half a century ago, they were widely tolerated. This shift is a gain for consumers and the global economy.

First, simply enacting a new competition law is not enough to promote the competitive process of improving welfare. In fact, in countries where the rule of law is weak and private property is not well protected, economic development will be hindered. In a country plagued by illegal activities, any economic policy that relies on the judicial system to implement, even the appeal review of administrative regulations, will not affect economic behavior. In other words, the success of competition law in promoting welfare-enhancing economic activities depends on