In a market economy, firms compete with one another to supply goods and services which meet the needs of consumers in terms of both quality and price in order to drive the consumers to buy and consumers choose and buy the high-quality, low-priced goods and services. The fair and free competition among firms ensures the benefits of the consumers in this way. To ensure this market mechanism, the Fair Trade Commission implements the Antimonopoly Act (the Act Concerning Prohibition of Private Monopolization and Maintenance of Free Trade) that prohibits the restriction of competition including cartels (for example, agreements among firms not to have price competition).

The Commission also implements the Premiums and Representations Act (the Act against Unjustifiable Premiums and Misleading Representations) and the Subcontract Act (Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors)which supplement the Antimonopoly Act. The Fair Trade Commission investigates the breach of these laws and eliminates offenses. The Commission also conducts surveys and raises proposals for regulatory reform.