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The Benefits of Competition

Competition is a public good and must be seen as a fundamental asset that contributes to a balanced and fair society and a market where opportunities are for everyone.


Ilustração Benefícios da Concorrência

We often hear about competition. We understand the concept and its importance. But, after all, what is the real impact on people's daily lives?

The efficient functioning of markets presumes the existence of free competition. This free competition enhances competitiveness and increases the stimulus of companies searching for the best possible economic performance.
Greater competitiveness creates more productivity and better quality of products and services. Companies can satisfy consumer preferences and, consequently, attain a better position in the market.
The market grows steadily, and consumers benefit from lower prices and a more comprehensive range of goods and services.

How does competition benefit society?

Competition is beneficial to the country's economy

By competing with each other, companies become more competitive, innovative, and efficient, based on merit. This market dynamic makes the economy grow, creating jobs and well-being for society. 

Competition ensures better prices

The competitive dynamics promote competitiveness and the efficiency of companies ensuring better prices. When companies create cartels or get involved in other anticompetitive practices, the exact opposite happens — costs rise and consumers are harmed.

Competition favours consumers

Competition between companies translates into a greater quantity of products and services, a better quality of goods, and lower prices. In the end, this is what the consumer is looking for — the best quality at the best possible price.

Competition is beneficial for companies

Competition policy promotes equitable conditions in the market, and as such, business success is based on merit. To win, companies become more competitive and solid. 

Competition favours the creation of companies

In a market governed by openness and equity, everyone has the same opportunities. Competition promotes freedom of initiative, the right of anyone to create a business and enter the market. Therefore, the Competition Law prohibits and the Competition Authority sanctions the abuse of a dominant position.

Competition promotes innovation

To provide the best product or service available to consumers, companies bet on differentiation. They invest in design, improve production techniques, and are committed to worker training. And see innovation as a way to distinguish themselves in a competitive market. 

Competition promotes exports

Internal competition stimulates and increases the capacity of a company to position itself in the international market. 

Raising awareness of the benefits of competition

The AdC promotes the benefits and rules of competition among public entities, different professional sectors, academics, the media, and consumers.

Violation of competition rules harms consumers, the company's competitiveness, and the economy as a whole. That is why it is fundamental that everyone complies with the rules of the game.
The Competition Authority works as a referee, and its role is to ensure that all respect competition policies. Whenever it detects or receives a complaint regarding an anticompetitive practice, the Competition Authority investigates and, where it verifies the existence of such practice, imposes fines.

In Portugal, the AdC is responsible for analysing mergers and acquisitions and prohibits these operations whenever it considers that they may create a monopoly or impede market competition.
The AdC has an important role in competition advocacy and advises or issues recommendations to public decision-makers to implement legislation, regulations or administrative measures that promote open markets and equitable competition.

Do you know the Leniency Programme?
By exposing a cartel, a company may benefit from a total immunity or fine reduction.
Ilustração Programa de Clemência
Why is it important to report harmful practices?
We count on your help to end behaviour that is harmful to the competition. If you are aware of anticompetitive practice, report to the AdC.
Ilustração  reportar más práticas