Competition policy seeks to encourage economic efficiency by creating a climate favourable to innovation and technical progress. It protects the interests of consumers by allowing them to buy goods and services under the best conditions. It also makes it possible to ensure that any anti-competitive practices by companies or national authorities do not hinder healthy competition. The Commission decisions quoted below are not the most important but are given as examples.
Markets can come to be monopolised as a result of restrictive agreements or company mergers.
A restrictive agreement is an agreement between two or more firms which requires one or more of the parties to the agreement to adopt a specific type of conduct. A concerted practice is a step below a restrictive agreement. It involves coordination among firms which falls short of an agreement proper. A broad overall policy has been established with regard to restrictive agreements and concerted practices. Certain types of agreement are prohibited, almost without exception.