Monday, August 9, 2010

Competition Law (Principle)

Competition law, or antitrust law, has three main elements:
Number One: prohibiting agreements or practices that restrict free trading and competition between business. This includes in particular the repression of cartels.
Number Two: banning abusive behavior by a firm dominationg a market, or anti-competitive practices that tend to lead to such a dominant position. Practices controlled in this way may include predatory pricing, tying, price gouging, refusal to deal, and many others.
Number Three: supervising the mergers and acquisitions of large corporations, including some joint ventures. Transactions that are considered to threaten the competitive process can be prohibited altogether, or approved subject to "remedies" such as an obligation to divest part of the merged business or to offer licenses or access to facilities to enable other businesses to continue competing.

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