An anti-competitive practice is any practice that prevents businesses from competing fairly and fiercely with each other. They come in various forms. Agreements that foreclose channels of distribution and markets from competitors and raise competitors’ costs relative to one’s own, such that competition is lessened in the market, are anti-competitive. Agreements between potential competitors not to compete are also anti-competitive. Examples here include bid rigging and cartels. In both, potential competitors co-ordinate their efforts such that they act as if they were one enterprise and do not compete against each other.
Whether or not a practice is anti-competitive depends on the likely effect on competition in the market. It is therefore highly case specific, as the effect on competition depends not only on the specific nature of the practice but also on other factors such as:
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how widespread the practice is in the market;
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the existence of alternative channels through which competitors may reach the consumers;
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the balance of market power between existing competitors; and
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the ease of entry into the market.
As a general guideline, if an enterprise has only a small share of the market, it would be highly unlikely that any of its practices could effect a lessening of competition so as to be considered anti-competitive. On the other hand, enterprises with large market shares are likely to have high market power and consequently would have greater ability to effect anti-competitive behaviour. (link to sections under “Prohibitions under FCA”)