anti-competitive practice

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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 ?
Shreesh Chandra, Senior Director, Content Creation & Acquisition, LexisNexis India-South Asia said during the launch, "The Competition Act, 2002 provides the main statutory framework that defines the typical anti-competitive practices prevailing in Indian markets.
The two-year transitory period for the companies to undo their anti-competitive practices ends on August 8 this year, which means the fines and penalties that could be imposed on them would be in full force and effect, said PCC chair Arsenio Balisacan.
Izuogu presents readers with a comprehensive examination of the work of the Nigerian Communications Commission in regulating anti-competitive practices in NigeriaAEs communications market.
CCP is probing the matter under the law and strict action will be taken against any undertaking indulging in anti-competitive practices.
Arab News reported earlier this month that the CCP wants to have greater powers to investigate firms for anti-competitive practices including probing government entities and increasing fines to 10 percent of a company's sales.
The Commission opened its investigation on 29 April 2011 (see Europolitics 4192) into the CDS market, where it suspects anti-competitive practices involving data and rates to prevent competitors from operating on this market.
India, March 1 -- Jadish Khattar, former MD of Maruti Suzuki has joined with the Competition Commission of India (CCI) in an enquiry against the anti-competitive practices of the Indian Auto Industry.
The Competition and Consumer Protection Commission (CCPC) has said that banks were engaging in anti-competitive practices in Zambia.
The NCC has cited anti-competitive practices by operators for its action.
The Commission is investigating three suspected anti-competitive practices in Central and Eastern Europe.
The Internet major has been accused of abusing its position in the market by indulging in anti-competitive practices in various ways.
2 million pesos (US$800,500) for anti-competitive practices in a 2005 dispute regarding the company blocking a shipment of cheap Russian-made cement from entering the country.