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Simple English definitions for legal terms
anticompetitive conduct
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A quick definition of anticompetitive conduct:
Anticompetitive conduct refers to actions taken by businesses that harm or try to harm competition in the market, without any valid reason. This behavior is against antitrust laws, which aim to promote fair competition and protect consumers from monopolies or unfair business practices.
A more thorough explanation:
Anticompetitive conduct refers to actions taken by a business or individual that harm or attempt to harm the market or the process of competition among businesses, without any legitimate business purpose.
Examples of anticompetitive conduct include:
- Price fixing: when two or more companies agree to set prices at a certain level, rather than letting the market determine the price.
- Exclusive dealing: when a company requires a customer to only purchase their products, and not those of their competitors.
- Market allocation: when two or more companies agree to divide up a market, rather than competing with each other.
These actions are considered anticompetitive because they limit competition and can lead to higher prices for consumers. For example, if two companies agree to set prices at a certain level, consumers have no choice but to pay that price, even if it is higher than what they would pay in a competitive market.