Open AccessShould the State Control Tariffs?
Author(s) -
Zaid Zaid,
Farouk Aisha Dawaki,
Sabit Kazeem Ololade
Publication year - 2021
Publication title -
journal of governance and public policy/journal of governance and public policy
Language(s) - English
Resource type - Journals
eISSN - 2549-7669
pISSN - 2355-8695
DOI - 10.18196/jgpp.811340
Subject(s) - harm , government (linguistics) , tariff , economics , competition (biology) , competition law , public economics , welfare , consumer welfare , control (management) , price discrimination , state (computer science) , welfare state , business , law and economics , market economy , international economics , law , political science , microeconomics , monopoly , ecology , philosophy , linguistics , management , politics , biology , algorithm , computer science
Tariffs or price control has been a controversial subject in recent years. The debate between legal experts and economists is still a hot topic in any discussion. Tariff control regulated in the work creation omnibus law seems to be a topic that must be discussed again regarding this regulation’s urgency. Are specific prices so impressive that the government can intervene in regulating them? This article examines the urgency of rules regarding price controls to create a healthy competitive environment. After conducting a critical literature review, it was analyzed with critical analysis and looking at the objective of competition law was to maximize welfare by protecting competition. The results in this article indicated that the government could only intervene in regulating price-fixing only if companies’ pricing could harm the country’s economy and consumer welfare. The government, therefore, had an interest in regulating the price ceiling. Meanwhile, the price floor, which was believed to be pro-consumer and could promote consumer welfare had no interest and should not have been limited by the government.