Paper Topic:

business law

Understanding Anti-competition Laws

Laws prohibiting anti-competitive conduct are critical to ensuring that markets operate as efficiently as possible so as to deliver the maximum benefits to the consumers

Laws that prohibit anti-competitive conduct have been around for a little over a century . This is mainly because competition has been present even longer . Where there is business and trade , some form of competition among businesses is assumed to be present . Thus , where there is money and profit to be made , safeguards need to be in place in to protect the consumer from

the effects of anti-competitive conduct

First , it is important to know what anti-competitive conduct is , and why laws need to exist to protect against it . The main goal of anti-competitive conduct is to restrict competition . This means fixing prices , sharing markets , or to restrict outputs . What anti-competitive conduct laws seek to encourage are that the consumer is provided with a diversity of choices of products of varying prices and quality , and a variety of choices of goods and services . Healthy competition is good as in essence it drives the cost of goods down , and the quality of products up . This in the end will be beneficial to the consumer

There are several kinds of anti-competitive conduct that are prohibited These are mainly abuse of a dominant position . This is where a dominant firm blocks any other competition . A dominant firm is one that controls at least 50 of the market . Another form of anti-competitive conduct is resale price...

4 pages

31.5 KB

Free sing-up