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The main economic reasons for the competition commissions ruling.
Member rating: No Rating | Words: | Submitted: Sat Dec 13 2003
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THE MAIN ECONOMIC REASONS FOR THE COMPETITION COMISSIONS RULING. The competition commissions ruling was based on a number of reasons including; competition issues (both on the local and national levels), buying power, supplier issues and the market as a whole but, there was various economic reasons affecting the cc ruling. The first reasons I will look at are the issues of competitive pricing and maximisation of consumer choice. One of the main reasons for the ruling was that the CC was not convinced that if Tesco, Asda or Sainsbury's were to merge with Safeway's prices would remain competitive. The CC wanted to be sure that any of the mergers that were being considered would bring about efficiencies that would not happen if the merger did not take place and, the CC also wanted to know what these might be (for example, IT, logistics, distribution, or head office), and whether these efficiencies would benefit...
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