SUMMARY
The purpose of the paper is to analyze the definition “state competition policy”, its essence, functions and mechanisms of implementation. The main purpose of competition policy is to ensure and promote the development of competition in the country, minimize market monopolization and ensure the functioning of a market economy through fair competitive methods. All these goals can be achieved only through the use of effective mechanisms and tools for the implementation of competition policy by the state authority. Methodology. Competition policy of the state, as one of the directions of economic policy, requires revision of the means and mechanisms for its implementation for an effective functioning of the market. There is a need to reconsider the powers of competition authorities and the urgency of application of legislative and regulatory acts providing these issues, for an effective implementation of the competition policy and achievement of the goals. Results. Despite a considerable amount of various definitions of the concept of state competition policy, its main objectives are to promote competition at the marketplaces, and the promotion and protection of competition. Practical implications. The government’s competition policy is an instrument, the effectiveness of which proportionately depends on the functions performed by the state aimed at the achievement of positive results, specifically related to the support of competitive environment in the process of economic activity, support of competition in certain sectors of the economy, prevention of anti-competitive practices etc. Value/originality. A significant role in this context is played by introduction of amendments to national competition law and harmonization of this legislation with competition law of member states of the EU. It is necessary to reconsider the competences and powers of competition authorities, their operational efficiency and interaction of bodies with national and international organizations regulating competition protection issues.