Kilpailunvähentäminen

Kilpailunvähentäminen, often translated as "reduction of competition," refers to a situation or deliberate action that diminishes the number of competing entities within a market or specific sector. This can occur through various mechanisms, including mergers and acquisitions, strategic alliances, government regulations, or natural market attrition.

When competition decreases, the remaining firms may gain greater market power. This can lead to higher prices for consumers, reduced product variety, and potentially less incentive for innovation if the dominant firms face little pressure from rivals. In some cases, a reduction in competition might be argued to lead to greater efficiency through economies of scale or a more stable market environment, though these benefits are often debated.

The concept is significant in antitrust and competition law, where authorities monitor market structures to prevent anti-competitive practices that could harm consumers or stifle economic dynamism. Excessive concentration of market power is generally viewed negatively from a public policy perspective, although some degree of consolidation is often a natural outcome of market processes. The optimal level of competition is a complex economic and policy question.