Government intervention

In October 2017 Scania, the Volkswagen-owned truck maker, was fined €880 million (£771 million) by the European Commission for colluding with five other truck manufacturers over a 14-year period. The firms had agreed to coordinate prices after experiencing additional costs of meeting emission regulations. With reference to an industry of your choice, evaluate why some firms engage in collusive behaviour.

Case study · The electronics industry

Discuss the likely concerns of the competition authorities regarding the proposed merger of the two companies referred to in Extract C.

Case study · The UK Rail Industry

Assess whether complete nationalisation of the rail industry might protect employees.

Case study · Energy and telecommunication markets in the UK

Discuss methods of government intervention to protect consumers within the utilities markets, such as energy and telecommunications.

Case study · The UK energy market

With reference to Extract A, discuss the likely effectiveness of ‘measures to open up and increase competition’ in the UK energy market.

Case study · The UK energy market

With reference to Extract B, assess how the regulation of energy suppliers’ profits is likely to affect consumers and suppliers in the energy market.

Case study · Supermarket price war, food waste and possible mergers

Examine measures the government might use to restrict the monopsony power of supermarkets.

Case study · Supermarket price war, food waste and possible mergers

Discuss the likely problems for Sainsbury’s and Morrisons if the suggested merger between them goes ahead. Refer to Figure 1, Extract C and your own knowledge in your answer.

Explain one likely concern the EU competition authorities may have had about the merger.