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 ?
The CNMC (National Commission of Markets and Competition) is investigating a possible anti-competitive practice in the market for the marketing of combined hormonal contraceptive drugs in Spain.
Apart from seeking a stay on the fine, BMW has also challenged CCI's legal proceedings on the alleged anti-competitive practice of selling spare parts at higher prices.
The report also mentioned that as many as 16 other carmakers have been found guilty of anti-competitive practice in the way they control their spare parts market.
It argued the incidences took place before 'cover pricing' was established as an anti-competitive practice by the Competition Appeal Tribunal.
Any anti-competitive practice must be condemned and a number of the companies involved have already held up their hands.
"Market-sharing and price-fixing are among the most serious forms of anti-competitive practice," said Mario Monti, the EC's competition commissioner.
The CNMC (National Commission for Markets and Competition) is investigating a possible anti-competitive practice in the market for the commercialization of inhaled medicines in Spain.
Based on the material available on record, the CCI found that the CDAB was indulging in the anti-competitive practice of insisting NOC prior to the appointment of new stockists by pharmaceutical companies and was also fixing/prescribing the trade margins during the relevant time period, in contravention of the provisions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act.
This anti-competitive practice prima facie constitutes abuse of dominant position and violation of Section 3 of the Competition Act.
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.
And they don't have to be accompanied by a male, which used to be the criterion, presumably before the OFT got wind of this anti-competitive practice. Ladies Nights have blossomed this year, as racecourse executives look around for different ways of bringing in bigger crowds.
The organisation claims that licensed operators may see the shift in focus as `a green light for anti-competitive practice.`