Abstract

The dramatic rise of inequality and the equally dramatic increase in economic concentration may be considered common wisdom in the current economic discourse. Not quite so when under discussion is the positive association between increased competition dynamics and reduced economic inequality. By eating into extra-profits and monopolistic rents – at least in the medium run – competition can re-balance the distribution of total income between capital and labour. In this article we ponder whether and how competition law can provide a contribution to the reduction of economic inequality. We argue that the explicit inclusion of equality among the goals of competition law and antitrust agencies is not required. However, a rewarding contribution may be provided, within the traditional mandate of antitrust agencies, provided these agencies knowingly consider the positive spillover of their enforcement on economic equality, give priority to decisions which might positively affect the low-income people, advocate welfare policies that create more equal opportunities and help making the impact of enhanced competition less threatening to losers.