Competition plays crucial role in sustainable development of economy, welfare and technological progress. It fosters companies to be better than competitors, to minimize production costs and to maximally satisfy customers. The aim of the article is to analyse an importance of competition for effective business development, identify burdens hampering fair business relations, as well as outcomes from insufficient level of competition. The authors have used analytical and graphical methods, such as comparative method, factor determination, specifications method, qualitative analysis and others to process data on business affairs in the market, as well as applied economic mathematical, statistical and quantitative methods to analyse the main factors which determine the level of market power concentration. As a result of the analysis authors came up to possible solutions how to prevent abuse of market dominance and to improve business environment.