Bureau of Competition

Definition

The Bureau of Competition is a division within the Federal Trade Commission (FTC) that is responsible for enforcing antitrust laws and promoting competition in the marketplace. Its primary role is to investigate and take action against anticompetitive business practices that harm consumers, such as mergers, acquisitions, and monopolistic behavior.

5 Must Know Facts For Your Next Test

1. The Bureau of Competition was established in 1915 as part of the Federal Trade Commission, which was created to enforce antitrust laws and protect consumers.
2. The Bureau of Competition investigates and challenges mergers and acquisitions that may substantially lessen competition or create a monopoly.
3. The Bureau of Competition can file lawsuits in federal court to block or unwind mergers and acquisitions that are deemed anticompetitive.
4. The Bureau of Competition also investigates and takes action against other anticompetitive practices, such as price-fixing, bid-rigging, and exclusionary conduct.
5. The Bureau of Competition works closely with the Department of Justice's Antitrust Division to coordinate enforcement of federal antitrust laws.

Review Questions

• Explain the role of the Bureau of Competition within the Federal Trade Commission (FTC) and its primary responsibilities.
  • The Bureau of Competition is a division within the FTC that is responsible for enforcing antitrust laws and promoting competition in the marketplace. Its main responsibilities include investigating and taking action against anticompetitive business practices, such as mergers, acquisitions, and monopolistic behavior, to ensure that consumers are not harmed by a lack of competition. The Bureau works to maintain a fair and competitive business environment by challenging mergers and acquisitions that may substantially reduce competition, as well as other anticompetitive practices like price-fixing and exclusionary conduct.
• Describe the process by which the Bureau of Competition reviews proposed mergers and acquisitions.
  • The Bureau of Competition conducts a thorough review of proposed mergers and acquisitions to evaluate their potential impact on competition. This merger review process involves analyzing the market shares of the companies involved, the level of concentration in the industry, and the likelihood of the merged entity engaging in anticompetitive behavior. If the Bureau determines that a proposed merger or acquisition would significantly reduce competition or create a monopoly, it can file a lawsuit in federal court to block or unwind the transaction. The Bureau works closely with the Department of Justice's Antitrust Division to coordinate the enforcement of federal antitrust laws during the merger review process.
• Analyze the importance of the Bureau of Competition's role in promoting and maintaining a competitive marketplace for consumers.
  • The Bureau of Competition plays a crucial role in ensuring that consumers benefit from a competitive marketplace. By investigating and challenging anticompetitive business practices, the Bureau helps to prevent the formation of monopolies or oligopolies, which can lead to higher prices, reduced quality, and less innovation for consumers. The Bureau's enforcement of antitrust laws, such as blocking anticompetitive mergers and acquisitions, helps to maintain a level playing field for businesses and fosters an environment where companies must compete on the merits of their products and services. This ultimately benefits consumers by providing them with more choices, better quality, and lower prices. The Bureau's work is essential for promoting a healthy, competitive economy that serves the interests of both businesses and consumers.

Related terms

Antitrust Laws: Laws that prohibit anticompetitive practices and promote fair competition, such as the Sherman Act, the Clayton Act, and the Federal Trade Commission Act.

Merger Review: The process by which the Bureau of Competition evaluates proposed mergers and acquisitions to ensure they do not significantly reduce competition or create a monopoly.

Monopolistic Behavior: The abuse of market power by a single firm or a group of firms to eliminate or reduce competition, often resulting in higher prices, reduced quality, and less innovation for consumers.