We argue that industrial policy characterizes the ways that governments shape markets in order to achieve a specific outcome, especially during moments of economic transition, and that competition policy provides the means for industrial policy strategies to achieve an outcome essential to the health of democratic societies: democratic economic governance. Competition policy provides governments with powerful legal tools to ensure that markets remain fair, open, and resilient and that dangerous concentrations of economic power are prevented. We assert that competition policy is and must be a fundamental component of industrial policy by reviewing how market concentration can threaten industrial policy outcomes, and that competition policy and industrial policy tools can work together to address these threats. Given the unpredictability of long-term outcomes during economic transitions, competition policy tools must be used to prevent incumbent firms from resisting change or monopolizing new markets—and to ensure that emerging industries are designed to be fair, open, and resilient. By placing competition policy at the center of industrial strategy, governments can preserve democratic oversight of markets and ensure that the benefits of economic transitions are broadly and fairly shared.