The research explores the topic of Restricting Freedom of Competition through Compulsory Pricing, considering it one of the most pressing legal and economic challenges faced by free markets, especially in developing countries. The study examines compulsory pricing as a state intervention tool aimed at regulating market prices- either by setting price floors or ceilings– to achieve economic or social goals such as consumer protection or crisis management.
The research focuses on analysing the complex relationship between the principle of free competition- a cornerstone of market economies- and state- imposed pricing, which may act as a constraint that reduces market efficiency, discourages innovation, and weakens the investment environment. It investigates the legal and economic implications of compulsory pricing, including its potential to disrupt supply and demand mechanisms, promote black markets, restrict contractual freedom, and potentially conflict with international trade agreements. To address these issues, the research proposes balanced solutions based on flexible pricing policies, such as implementing price ceilings instead of fixed prices, offering direct subsidies to consumers instead of explicit price controls, enhancing transparency and regulatory oversight, and developing the legal framework to ensure a balance between consumer protection and fair competition.