Competition policy leads to greater consumer sovereignty and welfare.
In a fair and competitive business environment, companies are under constant pressure to respond to consumer preferences in order to attract more customers and thus increase their market share. This means that they are forced to offer the best possible quality at reasonable or reduced prices. In other words, consumers have a wider range of goods and services to choose from.
Competition policy is closely linked to poverty reduction.
Small entrepreneurs, in particular, benefit from low(-er) entry and exit barriers to markets. A level playing field allows them to purchase inputs and sell outputs at fair prices and on fair terms. In turn, consumers of all strata of society are presented with adequately priced goods and services to choose from.
The poor are often beneficiaries of government-funded services or infrastructure. With the elimination of bid-rigging in public procurement, as one of the core instruments of competition policy, governments are able to get the best value for money. At the same time, economically disadvantaged groups can gain access to affordable electricity, water, telecommunication or financial services, among others.