A MODIFICATION OF THE COMPETITION POLICY UNDER CONDITIONS OF A TRANSFORMATION OF ECONOMIC RELATIONS

Abstract

The nature and the role of economic competition at the present stage of economic development are revealed. The analysis of a competition advocacy in the implementation of an economic policy is performed, and the mechanisms and the instruments used in the international practice of competition protection are highlighted. Based on the presented analysis, the objective necessity of the competition advocacy in Ukraine’s modern economy is stated.
The advocating competition process is becoming more and more important as one of the modern trends of a competition policy that covers the activities of competition authorities, aimed at clarifying a positive role of competition, forming a culture of competitive relations in the society. The development of international economic relations and the association of Ukraine with the European Union increase the relevance and the importance of learning the basics of the international competition protection system.
A comprehensive review and a justification of the priorities of a competition policy; mechanisms and tools of a competition advocacy in the international practice; identification of the most inherent forms and means for creating a civilized competitive environment.
The theoretical basis of competition and its modern forms have been the subject of increasing popularity in many international forums and publications of OECD, UNCTAD, APEC, and the Association of Southeast Asian Nations, particularly in the International competition network. In Ukraine, the issue of competition policy and competition advocacy is reflected in many scientific works, but the special attention to it is paid by such scholars as O. Bakalins’ka, Z. Borysenko, O. Elets’, A. Voznyuk, B. Heyets, L. Golovko, B. Kvasnyuk, V. Lagutin, Y. Umantsiv, G. Fylyuk.
At the present stage of market economy development, the competition moves from the production sphere into the field of research and development activities and computer science. The main source of competitive advantages is the ability of individual enterprises to innovate and, at the macroeconomic level, an incentive to invest in the innovation development. The trends of improving a product quality, expanding service, and provision of additional services to consumers are becoming more and more important in the production nowadays. “Competition on the basis of quality - is a higher level of competition, as the combinations of consumer value in the goods are more diverse, comparing to their cost variation”.
Typically, the competitive environment is a desirable ratio of competitive and monopoly regulatory forces. However, along with the changes taking place with the development of a competition in the second half of the twentieth century, the trend to increase the monopolization of markets occurs.
In particular, the French economist Jean Tirole won the Nobel Prize in Economics in 2014 “for his analysis of market power and control”. The scientist explained that the traditional methods of deterrence to the monopoly markets such as the limitation of prices and the prohibition of a cooperation between competitors can be effective under certain circumstances, but they may do more harm than good under other ones. So, the forced restriction of prices does not always prevent super-profits, and the cooperation of large companies is bad for the market, when it comes to setting prices, but is useful to create patent pools, for example.
So, the modern period of development can be characterized as an unusual synthesis of competition and monopoly. Respectively, changes to the competitive policy are needed.
Let us talk about a new direction of the competition policy, which was formed in the late twentieth century, namely - competition advocacy. The mechanism of its implementation is an interactive system of knowledge promotion and popularization of advantages of a fair competition and the formation of a pro-competitive culture as a result. Moreover, providing the feedback between the society and antimonopoly authorities, the advocacy allows one to turn the rules of competition legislation to the needs of consumers.
Now, it is worth noting one of the strategic objectives in creating a competitive policy of Ukraine, namely, the creation of the culture of competition. The culture of competition forms and supports the conditions of a fair market competition, provides a socio-active behavior of economic entities, and determines the rules of business ethics and civilized relations between market participants.
A new direction of the competition policy, namely a competition advocacy, is a complex multivector set of measures implemented by state’s competition authority to support, develop, and protect the fair market competition, to form a culture of competition in the country, to strengthen the principles of the fair transparent competition, by sustaining a balance between private, public, and state’s interests in the economic activity.