The interaction between competition and democracy

Competition authorities rarely consider democracy in their day-to-day functioning, yet the notion that competition is important for the maintenance of a healthy democracy was a core part of the motivation for introducing antitrust laws in some jurisdictions. This paper explores the link between competition and democracy and the potential for reduced competition to allow firms to acquire economic power. When economic power grows large, firms may be able, through mechanisms such as lobbying or political donations, to convert it into political power, allowing them to influence and affect political outcomes independent of democratic will. However, the link between competition and economic power is complex and further research is warranted. Furthermore, the paper identifies several approaches to the role of democracy within competition law, arguing irrespective of any changes in policy, increased competition benefits democracy and provides another reason for robust and resourced competition policy to champion and preserve competition.