Editing Anti-competitive practices (section)

{{short description|Practices that prevent or reduce competition in a market by a business or government}}
{{redirect|Unfair competition|the film|Unfair Competition (film)}}
{{Use American English|date=August 2024}}
{{needs more citations|date=September 2024}}
{{Competition law}}
'''Anti-competitive practices''' are business or government practices that prevent or reduce [[Competition (economics)|competition]] in a market. [[Competition law|Antitrust laws]] 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 [[monopoly]] power. Competition allows companies to compete in order for products and services to improve; promote [[innovation]]; 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.

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 [[Dominance (economics)|dominate]] 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 [[profit margin]]s and deter competitors from the market. Therefore, it is heavily regulated and punishable by law in cases where it substantially affects the market.

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.