Which of the following is NOT a rule established by competition policy?

The concept of competition policy is designed to promote fair competition and prevent anti-competitive practices in the marketplace. One of the key roles of competition policy is to regulate how businesses interact to maintain a level playing field. The idea behind this regulation includes preventing practices that can distort market competition, such as forming cartels or engaging in monopolistic behaviors.

When analyzing the correct answer, which is the unlimited mergers and acquisitions, it is important to understand that competition policy seeks to monitor and sometimes restrict mergers and acquisitions to prevent the creation of monopolies or the reduction of competition in the market. This means that not all mergers and acquisitions can proceed without scrutiny; they are often subject to review by regulatory bodies that ensure they do not harm competition.

In contrast, the other options listed are fundamental principles established by competition policy. For instance, the prohibition of cartels aligns with the commitment to maintain competitive markets by preventing businesses from colluding to fix prices or manipulate supply. Similarly, regulations related to monopoly power focus on ensuring that no single company can dominate the market to the detriment of consumers and other businesses. Additionally, state-owned businesses are also governed by competition policy to ensure they do not unfairly compete with private enterprises, further enforcing the rules of fair competition.

Thus,