<P> The history of competition law reaches back to the Roman Empire . The business practices of market traders, guilds and governments have always been subject to scrutiny, and sometimes severe sanctions . Since the 20th century, competition law has become global . The two largest and most influential systems of competition regulation are United States antitrust law and European Union competition law . National and regional competition authorities across the world have formed international support and enforcement networks . </P> <P> Modern competition law has historically evolved on a country level to promote and maintain fair competition in markets principally within the territorial boundaries of nation - states . National competition law usually does not cover activity beyond territorial borders unless it has significant effects at nation - state level . Countries may allow for extraterritorial jurisdiction in competition cases based on so - called effects doctrine . The protection of international competition is governed by international competition agreements . In 1945, during the negotiations preceding the adoption of the General Agreement on Tariffs and Trade (GATT) in 1947, limited international competition obligations were proposed within the Charter for an International Trade Organisation . These obligations were not included in GATT, but in 1994, with the conclusion of the Uruguay Round of GATT Multilateral Negotiations, the World Trade Organization (WTO) was created . The Agreement Establishing the WTO included a range of limited provisions on various cross-border competition issues on a sector specific basis . </P> <P> Competition law, or antitrust law, has three main elements: </P> <Ul> <Li> prohibiting agreements or practices that restrict free trading and competition between business . This includes in particular the repression of free trade caused by cartels . </Li> <Li> banning abusive behavior by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position . Practices controlled in this way may include predatory pricing, tying, price gouging, refusal to deal, and many others . </Li> <Li> supervising the mergers and acquisitions of large corporations, including some joint ventures . Transactions that are considered to threaten the competitive process can be prohibited altogether, or approved subject to "remedies" such as an obligation to divest part of the merged business or to offer licenses or access to facilities to enable other businesses to continue competing . </Li> </Ul>

The purpose of business cartels in the late 19th century was to