ANTICOMPETITIVE Meaning and
Definition
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The term "anticompetitive" refers to any action, policy, agreement, or behavior that hinders or limits competition within a market or industry. It is commonly used in the field of antitrust, a branch of law aimed at promoting fair business practices and preventing monopolistic or unfair market dominance. Anticompetitive actions often involve companies or entities engaging in practices that restrict competition, stifle innovation, or unfairly advantage themselves at the expense of other market participants.
Anticompetitive behavior can take various forms, such as price fixing, bid rigging, market sharing agreements, or abuse of dominant market position. It typically involves actions that distort the normal functioning of a competitive market by reducing consumer choice, increasing prices, or creating barriers to entry for potential competitors. Such behaviors can harm consumers, other businesses, and overall economic welfare by limiting options, discouraging innovation, and reducing efficiency.
Antitrust laws and regulatory authorities are in place in many jurisdictions to identify and deter anticompetitive practices. These laws aim to promote fair competition, protect consumers, and ensure a level playing field for businesses. Antitrust authorities investigate and penalize companies found to engage in anticompetitive behavior, imposing fines, mandating changes in practices, or even dismantling monopolistic structures to restore competition. By maintaining robust competition, societies can foster innovation, efficiency, and choice, ultimately benefiting consumers and promoting economic growth.
Etymology of ANTICOMPETITIVE
The word "anticompetitive" is derived from the prefix "anti-", meaning against or opposing, and the root word "competitive", which originates from the Latin word "competere". The Latin word "competere" means "strive together" or "strive for", and it is composed of "com-" (meaning together) and "petere" (meaning to strive or seek). Therefore, "anticompetitive" refers to actions or behaviors that go against or oppose competition.
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