Competition is considered to be the chief component of the free market system. However, market can be manipulated when some businesses try to gain more market power than the others, this could distort competition and could also reduce economic efficiency. Hence, the presence of an effective competition and merger policy is vital to protect consumer interest, innovation of new product and technology and strong economic growth. “The necessity for competition policy was already recognised by Adam Smith when he wrote in the Wealth of Nations in 1776, where he stated that 'People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some instances to raise prices’.” (Hay, 1993 pg.1). It is also important to consider that for a successful competition policy, it is required that the design and implementation of the policy is appropriate.
