anti-competitive practice

anti-competitive practice

a practice employed by a firm which has the effect of restricting or eliminating competition in a market. Practices which may potentially adversely affect the position of a firm's rivals, suppliers or distributors include EXCLUSIVE DEALING, REFUSAL TO SUPPLY, FULL LINE FORCING, TIE-IN SALES and AGGREGATED REBATES. These practices are likely to be particularly restrictive if employed by a DOMINANT FIRM as a means of buttressing its market position against competitive encroachment. The COMPETITION ACT, 1980, gives the OFFICE OF FAIR TRADING and the COMPETITION COMMISSION powers to investigate and, where appropriate, prohibit offending practices. See COMPETITION POLICY.

anti-competitive practice

a commercial practice operated by a firm that has the effect of restricting, distorting or eliminating competition (especially if operated by a dominant firm) to the detriment of other suppliers and consumers. Examples of restrictive practices include EXCLUSIVE DEALING, REFUSAL TO SUPPLY, FULL LINE FORCING, TIE-IN SALES, AGGREGATED REBATES, RESALE PRICE MAINTENANCE and LOSS LEADING.

Under the COMPETITION ACT 1980, exclusive dealing, full line forcing, tie-in sales and aggregated rebates can be investigated by the OFFICE OF FAIR TRADING and (if necessary) the COMPETITION COMMISSION and prohibited if found to unduly restrict competition. The RESALE PRICES ACTS 1964, 1976 make the practice of resale price maintenance illegal unless it is, very exceptionally, exempted by the Office of Fair Trading. See also PRICE SQUEEZE.

References in periodicals archive ?
Following a detailed investigation by the Director General (DG), the Commission has found that KCDA was indulging in the anti-competitive practice of mandating NOC prior to the appointment of new stockists by pharmaceutical companies.
The Commission said on April 2 in their explanation for the heavy fines that the unions were guilty of anti-competitive practice and had broken European law.
After getting the matter investigated by the Director General (DG), the Commission has found that AKCDA and its District Units at Thrissur and Kasargod were indulging in the anti-competitive practice of insisting NOC prior to the appointment of new stockists by pharmaceutical companies.
It argued the incidences took place before 'cover pricing' was established as an anti-competitive practice by the Competition Appeal Tribunal.
When Toyota acquired control over the management of the local company in late 2002, it found the firm's former management had engaged in the anti-competitive practice of maintaining minimum retail prices, they said.
Market-sharing and price-fixing are among the most serious forms of anti-competitive practice," said Mario Monti, the EC's competition commissioner.
The CCI is investigating 17 auto companies including Hyundai over alleged anti-competitive practice of selling spares at higher rates to consumers.
Forced sale of products may constitute an anti-competitive practice prohibited by the Competition Act, 2010.
Despite the findings, the OFT said it could not punish the firms concerned as there was no evidence the anti-competitive practices were continuing.
Australia's Qantas Airways may face a damages claim from Impulse Airways if the Australia Competition and Consumer Commission (ACCC) find the airline guilty of anti-competitive practices.
District Judge Thomas Penfield Jackson, however, rejected a Justice Department request to fine the software giant $1 million a day for alleged violations of a 1995 court order aimed at preventing anti-competitive practices in the software market.
Earlier this year we at Virgin decided to take the step of making a formal complaint to the European Commission regarding CCSB's anti-competitive practices in the United Kingdom cola market.