Scenarios regarding the role of the Competition Council and its influence to the economic environment

• Author: George Gruia - George Cristian Gruia
• Position: Spiru Haret University, Bucharest, Romania - Technical University from Prague, Czech Republic
• Pages: 259-267

Scenarios regarding the role of the Competition Council

and its influence to the economic environment

Lecturer PhD George GRUIA

1

Eng. George Cristian GRUIA2

Abstract

The pr esent ar ticle offers a ser ies of scena rios which can a ppear as a result of

different decisions that ar e being taken and applied by the Competition Council with

implications in the nationa l economy. The scope of the article is for best pra ctices examples

to be showcased in order for the pr ocedures of competition law in b usiness to be

smoothened out. With this occa sion, our aim is to offer a par allel with the Competition Law

from Czech Republic a nd Singapore to have a better understanding of the differences but

also its effects which could appear in the Romanian and interna tional business environment

once the decisions are being taken by th e Council o f Competition. Several scenarios are

being conducted and a nalysed from the juridical -commercial perspective and certain

recommendations a re being formulated for a better development of Europea n Law, in this

case the international business law in the context of a broader fra mework in the Eur opean

Union, but in Asian and Centra l American countries a s well.

Keywords: tra nsparency, best practices, scena rios, competition.

JEL Classification: K23, K33

1. Introduction

The Competition Council has the role to protect the consumers’ interests

against the anticompetitive policies, that different economic agents nationally and

internationally exert them in order to obtain unduly profits through the monopoly

that is exerted over that specific market influencing at one’s will the price and the

quantity of sold goods to the end users. In this regard, one can notice that certain

„players” on the international market can influence in a negative manner the

products and selling of those products to the end users, based on the decisions that

are being taken at local level by the Competition Council.

On the one hand the Council's role is to protect consumers, but on the other

hand it may adversely affect the strategy development and the penetration of

certain manufacturers in various markets, and their influence on local and

international Stock Exchanges, due to lower stock prices of companies subject to

acquisition / merger, and consequently the cash-flow.

We also consider time as a negative factor, namely delaying the decision of

the Competition Council as a negative influence on the market and the business

environment. In this case, the merger may create a state of uncertainty affecting

1 George Gruia - Spiru Haret University, Bucharest, Romania, g.gruia@yahoo.com

2 George Cristian Gruia - Technical University from Prague, Czech Republic,

georgecristian.gruia@fs.cvut.cz