Antitrust Laws

Posted in Finance, Accounting and Economics Terms, Total Reads: 706
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Definition: Antitrust Laws

The Antitrust laws are laws which are framed to promote free competition


1. ANTI-COMPETITIVE AGREEMENTS

The set of agreements which are considered to have an adverse impact on competition:

  • Directly or indirectly determine selling prices;
  • Put a limit on production/supply
  • Directly or indirectly participate in bid rigging or collusive bidding.

2. ABUSE OF DOMINANT POSITION

Dominant position is defined as the position of superiority enjoyed by an enterprise in the relevant market, which enables it to operate without relying on the competitive forces prevailing in the market. Abuse of dominant position will be declared if an enterprise indulges in the below mentioned events:

  • Imposing  conditions that are discriminatory in the purchase or sale of goods or service
  • Indulging in practices resulting in the denial of market access
  • Utilization of the firm’s dominant position in one relevant market to enter into another relevant market.

 

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