Market competition between entrepreneurs is the driving force of every market economy. In a global environment, competition brings lower prices, better products, greater choice, innovation, efficient companies and similarly, but to maintain the conditions of competition there must be some mechanisms that regulate the legal protection. Therefore, the Croatian law on protection of market competition provides a legal basis, which defines security policies, and its implementation ensures conditions of fair competition. The body responsible for the implementation and supervision on compliance with these rules in Croatia is the Agency for protection of market competition, whose task is in the frame of investigative procedures to explore market behavior which have negative effects on competition. Law on market competition in Croatia applies to all forms of prevention, restriction and distortion of competition by businesses in almost all economic sectors. Generally, it is prohibited any distortion of the market which is reflected in concentrations between undertakings which have a significant adverse effect on competition. In certain, clearly defined cases, restrictive agreements may be exempted from the restriction (this is not the case for abuse of dominant position). In this paper we will concentrate on illicit concentration of entrepreneurs, cartels and other prohibited agreements, abuse of dominant position and state support, as well as four major areas of distortion of competition.
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