anti-competitive practicea 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 practicea 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.