With the falling of industrial policy in the 1980s and the reduction of trade barriers in the early 1990s, economic policy attention has begun to focus on competition policy. And competition policy is an amalgam of economics, law, administrative practice, and schools of thought. It has both a theoretical and an empirical component. This study further explains that competition policy is deeply rooted in "Government Regulation". A basic way that government exert its power over business I to issue regulations governing private-sector behavior. The use of such regulatory power has growing in the United States. Many rationales have been put to justify this type of government intervention in the economy, society and politic. After the description of the rationales, this study deals with goals, theories (such as S-C-P vs. Chicago school), law development (Fair Trade Act), and administration of competition policy. On the principle of fair and justice, providing some information on competition policy of Taiwan.