The CARICOM Competition policy has as its objective to promote and maintain competition and enhance economic efficiency in production, trade and commerce. To ensure that action by enterprises does not reduce the benefits to be derived from the CSME, the CARICOM Competition Policy prohibits anti-competitive business conduct which prevents, restricts or distorts competition. This policy also promotes and protects consumer welfare.

Competition Law discourages conducts which undermines competition and is therefor one of the key measures needed to support the proper functioning of markets. Two of pillars of competittion law are prohibitions against:

• Anti-Competittive Agreements:

These are agreements between two or more competitors which have the intention or the effect of limiting competition amongst themselves in order to gain higher profits.

• Abuse of a Dominant Market Position

A firm is dominant in a market when its power far exceeds that of its rivals, and it can set prices without taking into account how competitors would react. In some jurisdictions, for instance, a firm is considered dominant if it possesses at least 40% of the market for a particular product. Public-owned monopolies are also subject to the Community competition rules, according to article 31 of the Revised Treaty of Chaguaramas.

Chapter 8 does not address the issue of regulating mergers in the region. The Regulation of Mergers being the third pillar of competition law. However, CARICOM is in process of developing a policy on merger control regulation.