Government intervention to constrain business activity
What are the reasons for government intervention in business?
The reasons for government intervention in business can include addressing market failures, ensuring fair competition, protecting consumer rights, promoting economic stability, fostering growth in strategic industries, managing externalities, and safeguarding national interests.
How does the government regulate monopolies and anti-competitive practices?
Governments regulate monopolies and anti-competitive practices through competition laws and regulatory bodies. They enforce regulations to prevent monopolistic behavior, abuse of market power, unfair trade practices, price fixing, collusion, and other anti-competitive actions. Governments may impose fines, penalties, or legal actions against companies engaging in such practices, promote competition through market liberalization, encourage fair trade practices, and establish regulatory frameworks to ensure a level playing field for businesses and protect consumer interests.