Sustainable Development

Increased awareness of the importance of public health and environmental control have made sustainable development an important element of consumer demand. Firms that lack the economies of scale/scope to compete on price levels may find their way in the sustainable production of goods. When successful, other businesses in the industry will be inclined to follow the same path of sustainability. 

Creating a competitive advantage by means of innovation can contribute to sustainable development. Competition policy provides the opportunity to compete on these grounds. Competition authorities provide a playing field where competition under fair terms is possible through regulation and enforcement. While companies protected by cartels or secure in a monopoly position have little incentive to change their practices, companies faced with competition may seek to develop new product lines, or improve the old ones, to meet the environmental and social expectations of consumers.