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anti-competitive practices (Anti-competitive practices are business, government or religious practices that prevent or reduce competition in a market (see restraint of trade). These can include: Dumping, where a company sells a product in a competitive market at a loss. Though the company loses money for each sale, the company hopes to force other competitors out of the market, after which the company would be free to raise prices for a greater profit. Exclusive dealing, where a retailer or wholesaler is obliged by contract to only purchase from the contracted supplier. Price fixing, where companies collude to set prices, effectively dismantling the free market. Refusal to deal, e.g., two companies agree not to use a certain vendor Dividing territories, an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories. Limit Pricing, where the price is set by a monopolist at a level intended to discourage entry into a market. (Ex. Licensing) Tying, where products that aren't naturally related must be purchased together. Resale price maintenance, where resellers are not allowed to set prices independently. WK Alexander Demidov) |
