Economic principles underlying EU competition policy 

Economic principles underlying EU competition policy 
There is more to making markets work than laisser faire. Questions surrounding competition policy tend to divide economists—and not necessarily along party lines, so to speak. Mainstream pro-market economists agree almost to a man that competition is an indispensable spur to efficiency and innovation, and hence to higher living standards and faster economic growth. There is far less agreement over the character and extent of the government intervention that is required to make sure competition thrives.
Source: The Economist (2003), Competition is all, December 4, 2003

Describe the economic principles underlying the European Commission’s approach and role towards competition policy. Do not deal with the nitty gritty of the legal aspects; instead, focus on the economics. Give at least one example of the application of the economic principles where appropriate.

A useful overview of how the European Competition Commission has evolved over the past 40 years is given in its 2010 annual report. See the first part of:
European Commission (2010). Report on Competition Policy 2010. Retrieved from:

A briefer summary is given in the latest annual report, which also deals extensively with the effects of the economic crisis on European Union members:
European Commission (2013). Report on Competition Policy 2012. Retrieved from:

Write 750 words. Do not forget to cite your sources correctly. You do not need to use the article mentioned above. The task will be assessed on language aspects, coherence, citing and referencing, and the content.
Criteria: the paper must have a purpose statement and an outline. It must be grammatically correct and coherent in its argumentation. It must include at least 3 in-text citations, and at least 3 references. At least two of the sources should be academic, i.e. academic journals, academic books, or institutional reports (e.g. OECD, IMF, World Bank, EU Commission).
Layout: must adhere to guidelines set out in the Guide to Academic Writing Skills (2016). Citations and references must be in APA6 format. Use the official Cover Page posted in the Academic Writing tab on the student portal.
Deadline: 10.00 on 25/02/2018 via Safe Assign