Hey,
This is a really good question. I just wrapped up a module on it last semester which was really interesting.
When applying to law firms, competition law often comes up in case studies. One of the key issues is whether a deal can go through without violating competition rules. If a company is too dominant in the market or if an agreement between businesses reduces competition, regulators might step in to stop the deal.
Competition law in the UK and the EU is designed to make sure businesses compete fairly so that consumers get better prices, more choices, and high-quality products. Without these rules, big companies could take over entire markets, push smaller businesses out, and charge higher prices without any real competition.
There are two main areas where companies can break competition law. The first is anticompetitive agreements. This is when businesses make deals that reduce competition, like fixing prices or agreeing not to compete with each other. In the UK, this is covered by Chapter I of the Competition Act 1998, and in the EU, it falls under Article 101 of the Treaty on the Functioning of the European Union (TFEU).
The second is abuse of a dominant position. A company that is much stronger than its competitors has to be careful not to use that power unfairly. For example, it cannot force customers to buy only from them or sell at a loss just to drive competitors out of business. This is covered by Chapter II of the Competition Act 1998 in the UK and Article 102 of the TFEU in the EU.
When companies try to merge, regulators (like the CMA or EC) check whether the new business would become too powerful and reduce competition. If that happens, they might block the deal or ask the companies to change it to protect consumers. This is why competition law is a big part of M&A case studies in law firm applications.
