Essay On Free Competition
Chapter I
PREAMBLE
1.1.1 A broad definition of Competition is “a situation in a market in which firms or sellers independently strive for the buyers’ patronage in order to achieve a particular business objective for example, profits, sales or market share” (World Bank, 1999).
1.1.2 A prerequisite for good competition is trade. In the 19th century, Philip Harwood, the journalist theologian defined Trade as “the mutual relief of wants by the exchange of superfluities” (Mulji, 1999). He added that Free trade as opposed just to Trade is “the unrestricted liberty of every man to buy, sell and barter, when, where and how, of whom and to whom he pleases”. “To buy in the cheapest market he can find and sell in the dearest market he can find” he said
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One approach is to have totally free and unfettered competition in the belief that it will drive out all unfair practices. The other approach is to assert that the process of free competition should be supported by regulations which preclude any attempt at subversion of free trade and competition. It may be pertinent here to note that in most parts of the world, free competition is supported by relevant rules and regulations to ensure free trade and absence of unfair practices.
1.1.8 The legislative enforcement of healthy trade practices necessitates the promulgation of the Competition Law. Free competition means total freedom to develop optimum size without any restriction. The limitation, if at all necessary, is not limitation of size but of competition power.
1.1.9 The ultimate raison d’etre of competition is the interest of the consumer. The consumer’s right to free and fair competition cannot be denied by any other consideration. There is also a need for supportive institutions to strengthen a competitive society notably, adequate spread of information throughout the market, free and easy communication and ready accessibility of goods. A free press, worthy advertisement and even such modern institutions as the Internet could support a modern competitive society. Without them, competition cannot thrive in a kind of
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