Understanding Anti-Competitive Behavior and Market Impact

Question 4: Explanation and Evaluation of regulation of anti-competitive behavior

Explanation

Anti-competitive behavior refers to a business that makes an unusual behavior of a business owner to operate in the market for selling products or services for own benefit. In other words, anti-competitive behavior involved anti-competitive activity that a marketer is liable to pay penalty for breaking of rules under the regulation of Competition Act 1998 of Articles 81 and 82 (Assets.publishing.service.gov.uk. 2020). It restricts inter-firm competition in a market increasing relative market position and profitability either at low cost or at high quality.

Evaluation

According to Sivani (2020), anti-competitive behavior turns a business owner work in non-compliance procedure of avoiding less profit. For example, Price fixing is one such practice that violates the law, as either of the parties or the shareholders are involved not only to sell a particular product; but sell products in different prices (GOV.UK. 2020).

On the contrary, Ivanov (2020), argued further on other aspects of a business that anti-monopoly policies are effective set of measures that could be brought into action for right legislation of the norms on anti-competitive practices. For example, Bid Rigging is another anti-competitive practice where there is collusion between two or more companies in terms of selection of winner (Quality Formations Blog, 2020). It tries to specify that bidding for contract with own competitors to be unethical under the law of Competition.

Moreover, anti-competitive behaviors come out in the form of practices that involves sharing of markets or customers as well as sensitive information for the sake of profitability in a business (GOV.UK. 2020). For example, it was once encountered from online secondary evidence that British Airways was found to have price fixing on fuel charges both in US and UK market (Fiona, 2007).

Other than this, a compliance program for anti-competitive behavior is a way of supporting a senior management that is appropriately conducting policies, procedures, and regular evaluation (Assets.publishing.service.gov.uk. 2020). Hence, it cannot be denied that anti-competitive behavior is not only a part of unethical competition but also a part of practice in a market (Olteanu and Titulescu, 2019). For example, as per Pharmaceutical-technology (2019), it was identified by UK Competition and Market Authority (CIMA) that Alliance pharmaceuticals have restricted anti-nausea drug and it was noted that there deal was an overarching agreement between the three companies (Medreich, Focus and Lexon).

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References

Assets.publishing.service.gov.uk. 2020. [online] Available at: [Accessed 26 October 2020].

Fiona. W. (2007). BA fined £270m for price fixing [Online]. Available at: [Accessed Date. 5th Nov 2020].

GOV.UK. 2020. Avoid and Report Anti-Competitive Activity. [online] Available at: [Accessed 26 October 2020].

Ivanov, A., 2020. Analysis of Differences in the Systems of Anti-Monopoly and Regulatory

Policies of States. Електронносписание» Диалог «, (01), pp.43-51.

Olteanu, C. and Titulescu, P.R., 2019. The Role of National Competition Authorities and Courts in Sanctioning Anti-Competitive Agreements under the Council Regulation (EC) No. 1/2013. JL & Pub. Admin., 5, p.100.

Pharmaceutical-technology.com. 2019. Four Pharma Firms Accused of Anti-Competitive Practices In UK. [online] Available at: [Accessed 5 November 2020].

Sivani, K.M.S., 2020. Critical Analysis of the Effects of Regulations under Competition Law on Mergers and Acquisitions: A Comparison of the India, EU, US, and UK Laws. Journal of Corporate Governance & International Business Law, 2(2).

Quality Formations Blog. 2020. What Is Anti-Competitive Activity and Why Is It Illegal? [online] Available at: [Accessed 26 October 2020].