1. Lesson Objectives
All students will understand the importance of regulation in some markets
Most students will be able to assess the why the regulation is needed
Few students will understand the importance of potential failure of regulation on the economy

2. Market Regulation
Question - What does this mean??

3. Market Regulation Promoting competition Regulating natural monopolies
Preventing anti-competitive practice
Controlling mergers and takeovers
privatisation
Regulating natural monopolies
OFCOM; OFGEM; OFWAT (example pg38)
EU regulation

4. Protecting consumers Maintaining consumer choice Consumer law
Through market regulation (previous slide)
Consumer law
Labelling
Marketing
ethical; times of the day etc
Fake items
How far should regulation go?
Gambling; legal drugs such as tobacco and alcohol

5. Employee protection
Discrimination law
Health and safety

6. Competition and Markets Authority
From 1 April 2014 the CMA took over many of the functions of the Competition Commission (CC) and the Office of Fair Trading (OFT).
Work to promote competition for the benefit of consumers, both within and outside the UK. Aim is to make markets work well for consumers, businesses and the economy.

7. Competition and Markets Authority
responsible for:
investigating mergers which could restrict competition
investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions
bringing criminal proceedings against individuals who commit the cartel offence
enforcing consumer protection legislation
co-operating with sector regulators and encouraging them to use their competition powers

8. Cost of regulation
Waste of resources for public sector and clear opportunity costs related to this
Compliance with regulation can cause delays and impose costs on businesses making them less efficient

9. Look at exam style Qd pg 45

10. hwk
Revise for test on 1.5 externalities