How does competition benefit consumers

How Do Consumers Benefit From Business Competition?

Consumers derive several key benefits from business competition, including higher quality products, a larger variety of similar products, better prices and greater accessibility in finding products. Companies regularly compete among themselves, hoping to win consumer trust and revenue. Companies looking to improve their image and attract the highest volume of sales create products with more aesthetic appeal, greater performance and other commendable features.

As businesses know, consumers have many options when choosing products. Companies tailor their marketing and outreach efforts to many segments of the population, ultimately looking to win over consumers in several areas. Companies primarily market their products as superior to those of competitors. Among cell phone and electronics providers, for instance, top competitors might issue products in bold colors or delivering a faster operating speed than competitors’ items.

In addition to providing superior products, companies improve upon other business aspects to get a leg up over competitors. They might boast better customer service or provide more comprehensive customer support. As companies continually offer more products, price ultimately drops. Consumers enjoy a larger variety of similar items for less money. They also enjoy a greater selection, as companies produce similar items with varying features, catering to the wants and needs of a diverse consumer base. Sometimes companies capitalize on trends and movements, linking their products with certain situations, providing a sense of urgency and popularity among consumers for those products.

6 Reasons competition is good for Business – Benefits of competition

March 9, 2018 By Hitesh Bhasin Tagged With: Marketing

Most of us are tired of competition. Majorly because it takes away business from us. But overall, there are many benefits of competition.

Decades ago, in the production era, companies just used to produce material and concentrated very less on selling them or differentiating them. All that has changed because of competition.

Ever noticed that most people are tired of government’s services? Do you know why that is? It’s because government does not have competition. As there is no competition, complacency and inefficiency is imminent. (I congratulate you if you think your government is efficient. You would probably be one of the few).

Instead of generalizing the concept, let us delve deep into why Competition is good for business.

Table of Contents

1) Awareness & Market penetration –

The more the competition, the more the awareness of the product. At one point of time, mineral water or bottled water was not in demand. However, even though it is important, the demand increased when there were multiple players of bottled water.

More the players, more the competition, more the awareness created. This ultimately resulted in most people preferring bottled water over normal water, even if the normal water was good in that region.

When the competition rises, it pushes an idea so much that the idea catches on, and the product then receives a better acceptance in the market. Digital television was one such idea and so was social networking. At the time of Myspace, there were few competitors. But today, besides Facebook people use Instagram, Pinterest, Snapchat and various others.

The more the competition, the more the awareness of the product, which is one of the major benefits of competition.

2) Higher quality at same prices –

If you look at the Air conditioning market or any consumer durable market, you will find that you are getting excellent product quality for the price paid. It was not so 2 decades back.

A couple of decades back, people were paying a bomb for Air conditioners (at least in Asian countries) and the margins to the dealers and distributors was high as there were select players for Air conditioners. As the competition rose, the price dropped. As the price dropped, people got good quality products at the lower price.

This is why competition is good for business. It maintains a high quality even at lower price. The bottom line gets affected, but the consumption increases. Which is the third point of this article.

3) Consumption increases –

As mentioned in both examples above – Bottled water and air conditioners, the overall consumption of the product increased due to the increase in competitors. This is because the penetration was higher, the quality was better and most importantly, people could afford at the competitive price.

One of the fundas of pricing is competitive pricing, wherein a player prices a product based on competitors pricing. Wherever such pricing is being used, you will find that the market has huge consumption levels, and a dollar here or there makes a huge difference to the bottom line. The benefits of competition lies in the fact that people are more accepting and more ready to purchase a product if it becomes a social norm.

4) Differentiation –

Once you have competition, the players try to differentiate themselves from each other. This leads to better products being developed, faster product upgrades as well as product innovation. Overall, it increases the market size considerably.

This is the same effect observed in the Mobile and Smartphone market. In 1990, there were few people who had mobile phones. But as the products started developing (thanks to Nokia), the penetration levels grew.

Later on Apple differentiated itself by launching touch phones like I phones which were top of the line stuff. Iphone created a huge demand in the market for smart phones and this market was then captured by Samsung. Samsung concentrated heavily on differentiation and product upgradation, and kept adding new products every month to its product portfolio. Apple did the same, and they are at loggerheads till date. But look at the way the smart phone market has grown.

Today, Samsung has 100’s of variants of its Smartphones across the world. This differentiation has led to better penetration in the market, with more acceptance to buying and upgrading smart phones. In fact, Smart phones have become the social norm and a person feels incomplete and disconnected when he does not have a smart phone.

The benefits of competition is evident in the fact that you will not try to upgrade product, or go out of your way to bring something new, if the existing product itself is in great demand. Same happened to Kodak. Kodak films were in demand until Digital pictures took over the market. This caused a massive slump for Kodak.

If you do not differentiate, the competition will take over your business. Ultimately, differentiation is better than losing to the market trend. And differentiation is propagated due to the presence of competitors.

5) Increases Efficiency –

When you have competition trying to over throw you, you do business better. You use your resources better, you are on your toes to ensure that there is minimal loss, and you want to capture the market faster. All this means, you are working at your optimum level, and your work is efficient, giving you a better bottomline.

Complacency is a fact of business. Many firms have shown that complacency can cause your business to fail. In fact, if you want to see an efficient business, then we can take the example of Apple. Apple has always been ahead in the game and is using technology which is far ahead of its competitors.

Apple launched the Macbook and has kept it upgraded even today to the latest in hardware and software. Its Ipad, Iphone, Macbook Air, Iwatch and everything that it launches, is assumed to have the best and the latest. This shows that Apple has never been complacent. It has always been efficient in business.

This efficiency comes in business when you are constantly in watch of what your competitors are doing. Consequentially you keep asking yourself, what do I do so that my customers are attracted to me and stick with me only? The great Steve Jobs was known to think like this, and he made Apple one of the leading companies in the world.

If there is competition, and you want to be better than them, you have to be efficient. Competition is good for business because it builds the competitive attitude in you. You either do it, or you fail.

6) Customer service and satisfaction –

After reading all the reasons above, just turn around and look at the customers. The customers would be happiest when they are buying from a segment where there is competition. And why wouldn’t they be?

They are getting excellent service because if they are not served well, they will move over to the competitor. They are getting upgraded products, they are getting differentiated products, their social status is increasing, their requirements are getting fulfilled, and all this is happening at an excellent price.

Compare it with a monopolistic market (example – government vs private sector) and none of this will happen. The customer will never receive personal service, they will not receive the latest in technology, there won’t be social status in acquiring such products, and the price would probably be a bomb too.

So one of the major benefits of competition, is that it makes customers positive towards buying a product. It makes them positive because they feel good being treated nice, being served well. And, you as a company will treat your customers nice, because otherwise they will go straight to the competitor. I know that i have done this several times.

So, overall, there are many benefits of Competition. I don’t want to tell you that competition is too good for business. Because, if it’s over competition, and market saturation, it is probably affecting your business in a bad way (which is happening in many developing countries right now).

But, there are several advantages of competition when it is healthy competition. Here’s hoping that you are in one such sector that your competition is pushing you to move forward. You won’t even come to know how you reached so far ahead in life, but the reason would probably be, because you beat your competitors.

How do Consumers Benefit from Competition among Businesses | Expert Guide

Competition is good for consumers because it keeps the quality and variety of goods and services; prices are high and low. In this way, it makes our economy work for the consumer. For this reason, government entities must ensure that businesses compete fairly within the rules they set. In this guide, I will discuss how consumers benefit from competition among businesses.

In the U. S., competitiveness is centered on price, selection, and quality. Clients profit because prices are kept low while the value and diversity of products and services are maintained. Since there is no shortage of rivalry, this markets work. The Ftc works to maintain markets are open and free by implementing trade restrictions.

How do Consumers Benefit from Competition among Businesses

Competition among businesses can seem like a cruel game, where competitors slash prices and take losses, hoping to drive their rivals out of business. Yet, consumers often benefit greatly from the tactics employed by competing businesses.

This is because there are more efficient ways to allocate resources than through central planning, which usually results in shortages for popular products or those willing to pay more. Even though competition causes individual companies to act selfishly, it also provides large benefits for society.

Businesses striving for market dominance tend to be less efficient than potential monopolists believe them to be. The desire for profits leads firms with market power to restrict production and raise prices until marginal revenue equals marginal cost.

In perfect competition, however, all goods and services that consumers demand are provided in the quantities they want at a price equal to marginal cost. Consumers, therefore, gain access to an abundance of goods and choices among different products.

Businesses also faithfully serve consumers who may not pay full price for their products or must wait weeks or months for delivery. Companies restrict production and reduce quality to limit competition in imperfectly competitive markets, which include monopolies and oligopolies.

So long as a product meets basic standards of usefulness and safety, some consumers may purchase it even if they prefer a more desirable product produced by a competitor. These discounts help society by providing needed supplies while keeping prices low.

In competitive markets, government intervention, businesses must appeal to consumers to survive. This gives consumers greater influence than their numbers justify, encouraging firms to provide high-quality products at the lowest possible prices.

Why Competition Benefits Consumers

Today we find a variety of companies looking for products or services to generate profits and satisfy the needs of their customers and workers. For this reason; we will name different acts that apply to entrepreneurs and directly benefit consumers:

Knowledge and market penetration

Playing the market: competition is good for business

When vigorous competition increases, the idea becomes so popular that it becomes a fad, and the product becomes accepted in the market by people. Digital television is one such idea, as is social networking.

When MySpace was created, there were practically no competitors. But today, in addition to Facebook, people also use Instagram, Pinterest, Snapchat, and many other apps. The more competition there is the greater the product’s visibility, which is one of the main benefits of competition.

Higher quality at the same price

Innovate and originality in products.

Players try to differentiate themselves through competition. This leads to better products, rapid product renewal, and product innovation. Overall, it significantly increases the size of the market.

The same effect is seen in the mobile and smartphone markets; in 1990, very few people owned cell phones. However, with the introduction of new products (thanks to Nokia), the volume of products has been growing.

Efficiency, satisfaction, and business improvement

When your competitors try to outdo you, companies strive to prove that they are better at business. In this way, they make better use of resources, reduce waste, and get to market faster. All these factors mean that they work optimally and efficiently, which leads to better results.

Satisfaction is a fact of business life; the experience of many companies shows that dissatisfaction can lead to business failure. If you want to see an efficient company, let’s take an example as an option; Apple is always at the forefront and uses technology far ahead of the competition, offering innovative products to the consumer.

Customer service and satisfaction

Antitrust law

The term “antitrust” dates back to the late 19th century when powerful companies dominated industries and worked together as groups, monopolies, or trusts to suppress competition. As a result, competition law came to be known as antitrust law. Today, the term “antitrust” is in the news in connection with mergers between competitors or conspiracies between companies to restrict competition.

Antitrust laws are enforced by government agencies that clamp down on company activities that damage customers by increasing prices, reducing quality, or limiting the supply of products and services. We keep an eye on company activities, examine proposed mergers, and oppose them when required to guarantee that the economy is built on consumption patterns rather than criminal tactics.

Agreements between producers and distributors or marketers of products

This often benefits consumers when products and services are bundled together: an example is when car dealers sell cars with tires. You may prefer other tires, but it makes no sense to transport and sell a car without tires.

On the other hand, certain agreements that link the purchase of one product to another product or service, so-called tying are illegal because they restrict competition without benefiting the consumer. For example, antitrust law may prohibit pharmaceutical manufacturers from forcing customers to buy the drug they want at a pharmacy and buy a control system they do not want.

Frequently Asked Questions

What are five ways that competition benefits consumers?

What is the rivalry between companies to sell their products and services?

It is known for the rivalry between companies; for the sale of their goods and services; as competition. On the other hand, the point where supply and demand equalize; is known as market price, the basis that governs rivalry and forms of competition.

What are the benefits of competition?

Why do consumers benefit from the pure competition?

In the United States, pure competition is based on price, choice, and service. Consumers benefit from low prices, high quality, and a variety of goods and services. Competition makes the economy work. The Federal Trade Commission helps keep markets competitive, open, and free by enforcing competition laws.

Why is competition bad?

Competition is often counterproductive or unprofitable when there are too many similar product offerings saturating the market.

Is competition always good for consumers?

Yes, only in certain cases where the market has a lot of products will you find disadvantages. Healthy competition always brings benefits to the consumer.

Bottom Line

At this moment, we have all the necessary information to define and break down how consumers benefit from comparison and competition between companies.

Therefore, using the material correctly and adequately will allow you to understand and apply it for your benefit. If you want to enjoy the best of both worlds, then come and join us! We offer a wonderful market with all its benefits.

You will be able not only as a consumer but also businessman because there’s no better time than now for starting your own business in this sector where we have everything at hand under one roof: supplies from various suppliers; equipment & tools required by craftsmen alike (even if some may seem unfamiliar); protection against adversities like natural disasters or economic crises thanks our insurance program.

Companies compete, and the competitor promotes product marking, service enhancement, and the enhancement of production capacity. The rivalry between them allows consumers to choose any product they desire.

If competition does not occur in the marketplaces, firms will ignore technological advancement and efforts to reduce costs. Price and service would be better for the enterprises, and there would be no gain from consumers.

I am Lavinia by name and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.

How do companies and consumers benefit from competition?

Competition is natural and very important in the market. At times, we may wish that competition didn’t exist so we could have total control of the market, but we should see competition as a good thing and more importantly, as a vital aspect to economic growth. Competition is necessary, in fact it’s natural.

Competition may be threats at times, but almost it is good for companies especially for consumers. Competition in the world of business is commonly viewed in a negative light, but doesn’t have to be a case. Competition can be a good thing for you, your competitor and particularly your customer.

This article discusses some of the benefits that competition can offer to companies and consumers.

2.1. Concept of competition.

Competition is a natural phenomenon, is the conflict between individuals who share the same habitat since they are attending to a certain object. In economic activity, competition is a rivalry between economic agents (producers, consumers) to win the better position in producing, contributing and consuming goods to obtain the best interests.

Competition can occur between producers and consumers (the producers want to sell expensive, consumers want to buy cheap); between consumers together to buy goods cheaper, better, between those who produce made to have better conditions in the production and consumption. There are many forms of competition: competitive price (discounts,…) or non-price (advertising,…).

2.2. Why do we need competition?

Competition is great. It keeps you sharp; it keeps your work and gives you a framework from which you evaluate your own actions. Why do we need competition and why is that really good? Most people see competition as something bad. They regard the status of monopoly as the ultimate status for business. However, we don’t think that it’s true; let us tell you why.

* It promotes growth.

It’s only natural; if you want to compete with someone else you have to grow. That is why whenever we want to get good at something we make friends with people who are already good at it.

So in the market, if you want to be successful, you have good relations with strong competitors and compete with them. That’s the only way to make you innovate and be stronger.

* It advances the human civilization.

If there was no competition we would have never landed on the moon.

The Cold War in general has created some truly remarkable technologies and has brought mankind as a whole to a new high. Some of the things that resulted from the competition between the two giants are: Faster Jets, Space Age Technology, the GPS, the Internet.

As a race we owe so much of our current advancements to competition between people, between companies, and between countries. As people compete, they create and the whole world grows as a result.

* It forces us to be more creative.

The great thing about having competitors is that you have to be more innovative. You have to think outside the box and go after new options in order to get ahead. If everybody gave up their competitive spirit this world would be a very different place.

There wouldn’t be things like the I-phone, computers, automobiles,… There just wouldn’t be the need to develop new things and go out in new directions if competition wasn’t a factor.

* It promotes taking chances and trying something new.

We need to be big fans of taking chances in life. It is something you need to do in order to grow and live a life full of great experiences. We would say that one of the biggest things which promotes chance taking is competition.

If you want to create a social media site that survives in the “facebook age” you’ll take chances and create something innovative in the world of social media like Twitter. You’ll have to create new gadget, or new ideas, just so you can survive and eclipse your rivals. Healthy competition brings out a stronger you.

Competition is natural; it is how the world works. Regardless of how much we try to tell ourselves that we don’t really want to compete with someone else the fact is we do.

We want to be the best at one thing or another. We want something to call our own and it is a drive that we inherit from millions of years of evolution brought about by competition.

* It makes life more entertaining.

The great thing about having rivals and challenges in life is that it makes life more entertaining. It forces us to grow and to try to achieve great things. Without competition, life becomes a lot less exciting and there are a lot less challenges. For a while it is nice, but as time moves forward we need something to occupy ourselves and get some meaning in life. Competition does just that.

2.3. How do companies and consumers benefit from the competition?

2.3.1. Benefits for companies from the competition.

* Motivate you to reach a higher standard of customer service or innovation.

Innovation is important to you and your company. When your business is number one or the only one, innovation tends to be ignored. Innovation is incredibly important and is woven into the fabric of what great businesses do.

If you don’t keep up, you will be left behind and possibly out of business. There is nothing quite like a competitor to motivate you to do greater. It isn’t about who gets the most market share, or who gets the most revenue, it is about who gives the most value and creates the biggest change in the world (to your market or target group).

As a business owner competition should motivate you to set a higher standard of customer service. And this does not necessarily mean having lowest prices. You can build customer satisfaction through trust, meeting expectations, and actually listening to what your customers have to say. Believe it or not brand loyalists are not motivated by price. They are motivated by value and feeling cared about.

* Identify your strengths and weaknesses and help identify potential threats to your business.

You may not always know what your strengths and weaknesses are until your competition points it out. Competition helps narrow your focus a little and concentrate on what you’re really good at that your competition isn’t. You are enabled to study your strengths and weaknesses. Your weaknesses help you become better, while your strength drives you harder to achieve more.

You are able to learn from other competitors what works and what doesn’t. By learning this you will be able to decipher what plans and strategies or even products would be detrimental to your business.

* Reminding you to focus on keeping your key customers.

Competition reminds you every now and then to focus on your key customers. After all, they are the reason why there is more cash inflow. By focusing on them you also come up with ways to serve them better.

Competition can really make you look at where your focus should be in a business. If you try to cover everything or too much, yet a competitor comes in with a product or service nowhere near in scope as yours, yet takes a part of the market share, maybe you should be focusing on different parts of your business and you are offering things that people weren’t really after.

If you only have one focus of your business then you need to niche further. What are your customers really looking for? Consistency, certain types of results, reliability, customer service. What matters to them the most and focus upon that.

*Providing ideas you can adapt for your products or services.

As far as there is high competition, you get better information about customer preferences or requirements. When your competitors make more profit than you, it means that they have adopted some great techniques to attract customers. It could be better service, low prices etc. So, you can study strategies that your competitors adopted which makes them successful. Thus, you can easily know the pulse of your customers and this can be utilized to make your business successful. In short, you get better ideas that you can make use of.

We think most people have a subjective view of their competitors. Competitor X is bad, competitor Y is good, etc. It’s a good idea to actually look objectively at competitors and see what you can learn from them. In some respect, they will have experiences that you don’t have. Just look at what is working for them. You can also look at how they try to brand themselves, what kind of ideas they come up with, or maybe try to fuse two or three ideas from different competitors on how they form a new product.

2.3.2. Benefits for consumers from the competition.

* Offered lower consumer prices to buy the same products.

In a competitive economic environment, companies do battle with each other in an attempt to earn the consumer’s interest. One common method companies use is to offer lower prices than the competition, which benefits the consumer. Lower prices may come in the form of special sales promotions, such as coupons or discounts, or the implementation of a pricing strategy where lower prices are an everyday occurrence. Not only is this good for consumers – when more people can afford to buy products, it encourages businesses to produce and boosts the economy general.

* Wide variety of products to choose what you really want.

In a competitive market, businesses will try to make their products different from their competitor. This results in greater choice – so consumers can select the product that offers the right balance between price and quality.

A competitive market means that there will be many suppliers for similar products. As there are more and more suppliers in the market, the customers will have much more choices. When monopolistic competition exists in the market, consumers usually have a few choices, so they have to be bound about product, even if its quality is appropriate with its price. Electricity market in Vietnam is a typical example for monopoly. In order to bring to customers best benefit, a competitive market with many competitors is necessary because it helps customers have much more choices for their demand, not be depended on unique suppliers.

* Offered better services especially after-sale services.

Quality can mean various things: products that last longer or work better, better after-sales or technical support or friendlier and better services. Companies that may not be able to beat their competitors on price may instead focus on delivering superior customer service to attract and retain customers. For the company, strong customer service can lead to customer loyalty. The consumer benefits by being “taken care of” by the company.

* Offered better quality of products.

Competition also encourages businesses to improve the quality of goods and services they sell – to attract more customers and expand market share. Prices for a product can be the same or sometimes even higher than the price offered by a competing company. Quality of product is more and more better, customers will really want it. Businesses can offer a better quality product to get customers to choose them.

* Given more information for products, producers,… to make informed decisions.

Heightened competition means more information that is accessible to consumers to help them make informed decisions. In the age of the Internet, consumers may log on to the websites of several competing companies to gather information that a 30-second television commercial cannot convey. By making comparisons, the consumer can feel more confident in his ultimate buying decision.

In addition, consumers can be given more information for producers, ingredients,… so they are able to know which product is good or bad for them, then they can buy it if it brings to many benefits.

* Can be given free samples and better promotion strategies.

Samples are everywhere. It gives you opportunity to “try before you buy”. You don’t have to spend money on something new before figuring out if you will like it or not. It also lets you find new products that you didn’t know. With the number of product choices available to consumers increasing every day you do not have time to research all the new products before buying them. Samples provide you a way to uncover something new.

Besides, you can be given better promotion strategies such as:

– Contests: One of the effective, popular and most preferred forms of promotional methods is to arrange certain contests for the customers. We all will agree to the fact that winning surprise prizes in a shopping mall or fashion store is simply exciting

– Pamphlets/Coupons: In the quest to attract more customers, companies distribute coupons and pamphlets about the products. The customers are either given basic information about the newly launched products or they are provided with discounted coupons on the purchase of some products.

* Can be more entertaining such as watching advertisings on TV, newspapers, brochures,…

In the competitive market, to appeal to the consumers, businesses need to have an advertising campaign. In one advertising programmer, it not only shows quality, features of products, information of producers,… but also include some different things make readers, listeners more comfortable, reduce stress such as beautiful pictures, actresses, actors. ; soft, attractive music,… And companies also need to change advertising programmer frequently to attract consumers in many ways, so consumers can relax with variety of advertisers in TV, radio, newspapers,…

Competition has an important role in the production of particular goods, and in the economic field in general, is the driving force for production development, contributing to economic development.

Competition brings lots of benefits, especially the benefits for consumers. The manufacturers must find out the ways to make higher quality and more eye-catching products with lower cost and higher technology to meet the tastes of consumers.

To benefit from competition, companies and consumers need to be active especially companies must find the ways to satisfy consumers’ needs. Competition forced the producers to be active, responsive, better capture consumer demand, improve skills actively, constantly improving technical progress applies, the successful research latest in production and perfect way of organizing production, the production management to improve productivity, quality and economic efficiency. Where lack of competition or show signs of stagnation is often proprietary and less developed.

The Benefits of Competition

Competition is a public good and must be seen as a fundamental asset that contributes to a balanced and fair society and a market where opportunities are for everyone.

We often hear about competition. We understand the concept and its importance. But, after all, what is the real impact on people’s daily lives?

The efficient functioning of markets presumes the existence of free competition. This free competition enhances competitiveness and increases the stimulus of companies searching for the best possible economic performance.
Greater competitiveness creates more productivity and better quality of products and services. Companies can satisfy consumer preferences and, consequently, attain a better position in the market.
The market grows steadily, and consumers benefit from lower prices and a more comprehensive range of goods and services.

How does competition benefit society?

Competition is beneficial to the country’s economy

By competing with each other, companies become more competitive, innovative, and efficient, based on merit. This market dynamic makes the economy grow, creating jobs and well-being for society.

Competition ensures better prices

The competitive dynamics promote competitiveness and the efficiency of companies ensuring better prices. When companies create cartels or get involved in other anticompetitive practices, the exact opposite happens — costs rise and consumers are harmed.

Competition favours consumers

Competition between companies translates into a greater quantity of products and services, a better quality of goods, and lower prices. In the end, this is what the consumer is looking for — the best quality at the best possible price.

Competition is beneficial for companies

Competition policy promotes equitable conditions in the market, and as such, business success is based on merit. To win, companies become more competitive and solid.

Competition favours the creation of companies

In a market governed by openness and equity, everyone has the same opportunities. Competition promotes freedom of initiative, the right of anyone to create a business and enter the market. Therefore, the Competition Law prohibits and the Competition Authority sanctions the abuse of a dominant position.

Competition promotes innovation

To provide the best product or service available to consumers, companies bet on differentiation. They invest in design, improve production techniques, and are committed to worker training. And see innovation as a way to distinguish themselves in a competitive market.

Competition promotes exports

Internal competition stimulates and increases the capacity of a company to position itself in the international market.

Raising awareness of the benefits of competition

The AdC promotes the benefits and rules of competition among public entities, different professional sectors, academics, the media, and consumers.

Violation of competition rules harms consumers, the company’s competitiveness, and the economy as a whole. That is why it is fundamental that everyone complies with the rules of the game.
The Competition Authority works as a referee, and its role is to ensure that all respect competition policies. Whenever it detects or receives a complaint regarding an anticompetitive practice, the Competition Authority investigates and, where it verifies the existence of such practice, imposes fines.

In Portugal, the AdC is responsible for analysing mergers and acquisitions and prohibits these operations whenever it considers that they may create a monopoly or impede market competition.
The AdC has an important role in competition advocacy and advises or issues recommendations to public decision-makers to implement legislation, regulations or administrative measures that promote open markets and equitable competition.