Types of Antitrust Violations
1. Price Fixing: This occurs when competitors conspire to collectively set prices rather than allowing them to be determined by market forces. By doing so, they eliminate competition and artificially inflate prices, harming consumers.
2. Market Allocation: Competitors may agree to divide markets or customers among themselves instead of engaging in fair competition. This practice restricts consumer choice, prevents market expansion, and stifles innovation.
3. Monopolization: When a company abuses its monopoly power to exclude competitors or maintain dominance unfairly, it undermines competition. This behavior can result in higher prices, lower product quality, and reduced innovation, ultimately harming consumers.
4. Tying Arrangements: Companies impose requirements on customers to purchase one product or service to access another. This restricts consumer choice and stifles competition by leveraging market power unfairly and deterring potential competitors.
5. Bid Rigging: Competitors collude to manipulate the bidding process, often for contracts or projects. By fixing bids or agreeing on the winner in advance, they undermine the integrity of the competitive process, leading to inflated prices and reduced efficiency.
Antitrust Laws: Meaning, Objectives, Types & Enforcement
Antitrust Laws ensure fair competition by preventing monopolies and unfair business practices. This article explains what antitrust laws are, their goals to protect consumers and markets, different types of these laws, and how they are enforced to keep the economy competitive.