Economic competition and its significance in conitions of the Slovak Republic

Effective competition creates pressure on undertakings to improve the quality of products and services offered and reduce their prices in order to be successful in the tough competitive struggle. Competition stimulates higher effectiveness in many different ways. A competitive environment creates better conditions and expansion opportunities for undertakings concerned and facilitates their entry into the market. In view of a possible loss of market positions as a result of competitive struggle, the implementation of new technology and innovations is progressing more intensively, namely through research, development, patents, and so forth. Competition is effective if independent entities operate in a market, each facing competitive pressure from others. Entities operating in the market derive their behaviour from the structure of the market. Therefore, control of concentrations prevents the establishment or strengthening of dominant entities, which would not be subject to adequate competitive pressure. Economic competition is an eminent instrument for effective and positive function which has influence progressing in economy of market. Although not every behavior of competition is allowable from economy competition. Entities in ambition benefit their position infra market or obtain some benefits often resort for practices which are prohibited. Such acting constitutes unfair competition, which is defiance of good mores of competition and it is able to cause drawback other participants of market. But it is not inevitable to cause material drawback. It may cause nonmaterial drawback, too. At propagation products or duties by business subjects, we can often pick on unfair competition, which constitutes not only one from significant facts of unfair competition. Consequently, it is very important to prevent anticompetitive behavior from companies SR (parasitical on goodwill, false advertisement, false branding of goods and duties, evoke danger of Exchange, and so forth).