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The Implementation of Competition Policy in the Field of Concentration: The Albanian Case

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  • Alba ALLMUCA

Abstract

In our country we can talk for free trade and the existence of a competition in the market only after 1990. Trade exchange with other countries is important for every one and more when it comes after a total closure. The opening of borders will certainly influence the best in the market empowered by it and by increasing competition. In our country were completed a series of structural reforms for the orientation towards the market economy. Thus began the creation of market economy, which implies the independence of economic agents and their ability to decide independently on their economic activity, so the free enterprise. But, with economic freedom began to emerge from the practices and risks for no competition in some markets. We can talk for mergers in Albania only after 2000, because after this year start a review for this. If we will see the first law on competition in the year 1995 does not mention any possibility of creating mergers in markets, but it is possible to create a dominant position for a company. Developments after 2000 and the beginning of the process of integration in EU make it necessary to revise the law in the area of competition. 9121 Law "On competition defense" where concentrations are treated as one of the pillars of competition law. What it is in the flow of concentration is that these are affecting the rights entitled to the structure of the market and this can cause a change in markets structure. Concentration of any kind would be they, can have two effects: A) Increasing market power B) Increasing efficiency Net impact of a merger on strengthening the market power will depend on the tradeoff between these two effects. A delay for the establishment of concentration is gaining market power, when the concentration consists in the creation of a single company. But the situation becomes more complex when the concentration concludes in a combination of some companies, but not all companies are part to the same market. Increasing competition in the Albanian market and globalization are the factors that make it attractive for companies joining their forces. Reorganization in some sectors is able to increase competition industry in our country and they can improve the conditions of growth and increasing living standards. In cases where we have union of companies which will bring more products with higher quality, will make products more competitive and make prices more reasonable, then profit from the concentrations. But some merger could bring the creation of a company or because the dominant operator would merger on market only products of the largest company. In this case, concentrations will have a lower level of efficiency in markets and from the competitions laws these companies can not perform or they can have some conditions to conduct their activities. Given the effects that come as a result of concentration and the first wave of merger that has begun in our country I decided to treat the topic: "The implementation of competition policy in the field of concentration."

Suggested Citation

  • Alba ALLMUCA, 2010. "The Implementation of Competition Policy in the Field of Concentration: The Albanian Case," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 153-168.
  • Handle: RePEc:ers:journl:v:xiii:y:2010:i:1:p:153-168
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    More about this item

    Keywords

    Competition; Mergers; Concentrations; Market power;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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