Effective competition enforcement delivers significant macroeconomic benefits

Most countries consider it desirable for active competition to exist in as many areas of economic life as possible. The reason, in a nutshell, is that the vast majority of economic theory strongly supports the view that competition in business is highly desirable, as it increases consumer welfare and promotes efficiency in the economy.

The term „concentration“ originates in industrial economics and refers to how activity in a particular market is distributed among the firms operating within it. High concentration generally indicates relatively limited competition, whereas low concentration indicates intense competition.

It usually involves some cost and effort for a company to start operating in a new market, but this is referred to as barriers to entry. If there are no barriers to entry in a market, new companies are expected to enter and start operating in it as soon as profit opportunities arise.