Anti-competitive Parctices

Anti-competitive practices are business, government or religious practices that prevent or reduce competition in a market (see restraint of trade).

These can include:
  • Dumping, where a company sells a product in a competitive market at a loss. Though the company loses money for each sale, the company hopes to force other competitors out of the market, after which the company would be free to raise prices for a greater profit.
  • Exclusive dealing, where a retailer or wholesaler is obliged by contract to only purchase from the contracted supplier.
  • Price fixing, where companies collude to set prices, effectively dismantling the free market.
  • Refusal to deal, e.g., two companies agree not to use a certain vendor
  • Dividing territories, an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories.
  • Limit pricing, where the price is set by a monopolist at a level intended to discourage entry into a market. (Ex. Licensing)
  • Tying, where products that aren't naturally related must be purchased together.
  • Resale price maintenance, where resellers are not allowed to set prices independently.
  • Religious / minority group doctrine, where businesses must apply tribute to a significant (normally religious) part of the community in order to engage in trade with that community. (A business that does not comply will be 50% worse off than the competitor if they do not comply with the tribute demanded by just 20% of the community)
Also criticized are: