kilpailuvääristymä

Kilpailuvääristymä, or distortion of competition, refers to a situation where market competition is undermined by unfair practices or circumstances. This can occur when one or more market participants gain an advantage that is not based on merit or efficiency, thereby hindering the ability of other, potentially more efficient, entities to compete fairly.

Common causes of kilpailuvääristymä include state aid or subsidies granted to specific companies, which can allow them to offer goods or services at artificially low prices. Other factors can include monopolies or dominant market positions that are abused, unfair tax advantages, protectionist measures that favor domestic companies over foreign ones, and cartels or anti-competitive agreements between businesses.

The consequences of kilpailuvääristymä can be detrimental to the economy. It can lead to higher prices for consumers, reduced quality of goods and services, and stifled innovation as less efficient companies are shielded from competitive pressure. It can also lead to a misallocation of resources, as capital and labor may be directed towards less productive enterprises due to artificial advantages.

In many jurisdictions, competition authorities are tasked with identifying and rectifying distortions of competition. This can involve investigating suspected anti-competitive practices, imposing fines, or ordering changes to business practices or state aid policies. The aim is to ensure a level playing field where competition is based on factors such as price, quality, and innovation, ultimately benefiting consumers and the broader economy.