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Anti-competitive practices
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<p>Anti-competitive practices are business or government practices that prevent or reduce <a href="/facts/Competition_(economics)/zscsQx5l">competition</a> in a market. <a href="/facts/Competition_law/cq7hKYN4">Antitrust laws</a> ensure businesses do not engage in competitive practices that harm other, usually smaller, businesses or consumers. These laws are formed to promote healthy competition within a free market by limiting the abuse of <a href="/facts/Monopoly/BXIQWUmR">monopoly</a> power. Competition allows companies to compete in order for products and services to improve; promote <a href="/facts/Innovation/aa7hadLw">innovation</a>; and provide more choices for consumers. In order to obtain greater profits, some large enterprises take advantage of market power to hinder survival of new entrants. Anti-competitive behavior can undermine the efficiency and fairness of the market, leaving consumers with little choice to obtain a reasonable quality of service. </p><p>Anti-competitive behavior refers to actions taken by a business or organization to limit, restrict or eliminate competition in a market, usually in order to gain an unfair advantage or <a href="/facts/Dominance_(economics)/mQ5nEIfK">dominate</a> the market. These practices are often considered illegal or unethical and can harm consumers, other businesses and the broader economy. Anti-competitive behavior is used by business and governments to lessen competition within the markets so that monopolies and dominant firms can generate supernormal <a href="/facts/Profit_margin/jlXaP9t0">profit margins</a> and deter competitors from the market. Therefore, it is heavily regulated and punishable by law in cases where it substantially affects the market. </p><p>Anti-competitive practices are commonly only deemed illegal when the practice results in a substantial dampening in competition, hence why for a firm to be punished for any form of anti-competitive behavior they generally need to be a monopoly or a dominant firm in a duopoly or oligopoly who has significant influence over the market. </p>