Anti Competitive Agreements Wikipedia

Anti-competitive behaviour can be divided into two classifications. Horizontal restrictions relate to anti-competitive behaviour that involves competitors at the same level of the supply chain. These practices include mergers, agreements, agreements, agreements, price agreements, price discrimination and predatory pricing. The second category, on the other hand, is |` a trade restriction that introduces restrictions on competitors due to anti-competitive practices between companies at different levels. B of the supply chain, including supplier-distributor relationships. These practices include exclusive trade, refusal of trade/sale, maintenance of resale price and much more. Under the doctrine of laissez-faire, the rules on cartels and abuse of dominance are considered unnecessary, given that competition is seen as a dynamic long-term process in which firms compete for market dominance. In some markets, a company can successfully dominate, but it is due to superior skills or an ability to innovate. However, according to laissez-faire theorists, when it tries to raise prices to take advantage of its monopoly position, it creates profitable opportunities for others to compete. It begins a process of creative destruction that undermines the monopoly.

Therefore, the government should not seek to dismantle the monopoly, but to make the market work. [57] If companies have significant market share, consumers run the risk of paying higher prices and obtaining lower quality products than in competitive markets. However, the existence of a very high market share does not always mean that consumers pay excessive prices, as the threat of new entrants can dampen the price increases of a company with a high market share. Not only does competition law make a monopoly illegal, but it also abuses the power that a monopoly can confer, for example, through exclusionary practices. From a competitive point of view, the concentration of economic power in the hands of less than before implies a merger or acquisition. [90] This usually means that one company buys back the shares of another. The reasons for government monitoring of economic concentrations are the same as the reasons for limiting companies that abuse a dominant position, except that the regulation of mergers and acquisitions attempts to solve the problem before it occurs, ex ante preventing market dominance. [91] In the United States, the Merger Regulation began under the Clayton Act and, in the European Union, under Merger Regulation 139/2004 (known as the "ECMR"). [92] Competition law requires that companies proposing a merger obtain approval from the appropriate government authority. The theory behind mergers is that transaction costs can be reduced by bilateral agreements compared to operating in an open market. [93] Concentrations can increase economies of scale and scale.

However, companies often use their growing market power, increased market share and declining numbers of competitors, which can have a negative impact on consumers` financial statements. In terms of concentration control, it is about predicting what the market might look like, not knowing and making a judgment. Therefore, the central provision of EU law raises the question of whether a merger, if it were to progress, would "significantly hinder the exercise of effective competition…