PROTECTION OF ECONOMIC COMPETITION AND TH E POSITION OF NATURAL MONOPOLY IN THE SLOVAK ECONOMY

Economic competition is the basic condition of market economy. If comp etition is restricted the market fails, the production declines and th e prices increase. Economic competition protection shall not only to p rotect consumers against abuse of dominant or monopolistic position of firms in the market but also to create conditions of further economic development. A specific role is played by natural monopoly which incl udes activities for a long time not influenced, by economic competitio n. The cause of its extraordinary position in the market is namely the its investment exigency and the demand level. The market economies tr y to arrange the area of natural monopoly by means of three following measures: privatization, competition, regulation. Privatization create s conditions for an effective functioning of enterprises. Competition, in the same time, replaces the protective influence of the state. Reg ulation in various forms is needed when all above mentioned measures f ail.