Browse Definitions :
Definition

anti-competitive practice

Contributor(s): Ivy Wigmore

An anti-competitive practice is an action conducted by one or more businesses to make it difficult or impossible for other companies to enter or succeed in their market. The market distortion resulting from anti-competitive practices can result in higher prices, poorer service and a stifling of innovation, among other effects. As such, anti-competitive practices are illegal in most countries and are prohibited under antitrust law in the United States.

Anti-competitive practices may be single-company efforts or may involve agreements among two or more businesses. Collusion involves unethical collaboration among competitors to exert unwarranted control over a given market. Companies may collaborate to establish and agree upon anti-competitive practices that will increase their domination of a given market.

Examples of anti-competitive practices include:

Predatory pricing: A company with a monopoly or multiple companies colluding demand an exorbitant price for a product that consumers need, such as a medication.

Price-fixing: When the businesses involved control their market (as in an oligopoly), they essentially have a captive audience in consumers for their product. Agreeing among themselves allows them to set the price higher than it might be if the market was more competitive.

Dumping: An established company sells its product at such a low price that smaller businesses cannot compete and may be forced out of the market.

Dividing territories: Two or more large companies agree not to compete in defined geographical areas.

Patent abuse: For example, a business might purchase huge numbers of patents related to their market to drive competition out. In another example, the entire business model of patent assertion companies, sometimes called patent trolls, consists of obtaining patents and profiting from them through patent infringement claims.

This was last updated in April 2019

Continue Reading About anti-competitive practice

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery plan (DRP)

    A disaster recovery plan (DRP) is a documented, structured approach that describes how an organization can quickly resume work ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close