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Topic: Anti-competitive behaviour

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Anti-competitive behaviour - Wikipedia, the free encyclopedia competition laws to prevent anti-competitive practices, and government regulators to aid the enforcement of these laws. Although anti-competitive practices often enrich those who practice them, they are generally believed to have a negative effect on the economy as a whole, and to disadvantage competing firms and consumers who are not able to avoid their effects, generating a significant social cost. Anti-competitive practices are business practices that prevent and/or reduce competition in a market. en.wikipedia.org /wiki/Anti-competitive_behaviour

Proposed Guidelines for Competition Policy Competitiveness, in the first place, means that we must optimise production and distribution efficiencies - including appropriate production processes and technological innovation - through effective economic and commercial interactions, including supply and demand, unhindered by anti-competitive conduct. Competition policy can assist competitiveness by identifying those aspects that harm consumer welfare, add unnecessary costs, entail anti-competitive practices, or distort the economy. Improved utilisation of capacity and resources, the promotion of research and development, minimising the loss of employment opportunities, the rescuing of a failing company, enhancing the international competitiveness of domestic enterprises, and improvements in the country's balance of payment position are the public interest benefits cited most often by parties seeking clearance for a transaction. www.polity.org.za /govdocs/policy/competition.html

Natural monopoly Opposing this trend is utility deregulation, in which suppliers (usually at the request of government regulators) seek to reduce the burdens of regulation while accepting some competition in what they may have formerly held to be a natural-monopoly market. In standard supply and demand theory with a perfect competition this creates an equilibrium price that is below the average cost to produce. In particular, companies that grow to take advantage of economies of scale often run into problems of bureaucracy ; these factors interact to produce an "ideal" size for a company, at which the company's average cost of production is minimised. www.sciencedaily.com /encyclopedia/natural_monopoly

In Defence of Feyerabend The same "anti-competitive" behaviour is likely to find its way into any school of thought which gains too much of an upper hand in society; thus Feyerabend's suggestion that science is not inherently liberating, even if it was a liberator in the seventeenth and eighteenth centuries. If the competitive forces of evolution can give us the very brains by which we are able to conduct this discussion, then competitive forces between opposing views must surely work to the advantage of those views in terms of weeding out weak arguments, fallacies, anomalies, and so on. That an absence of competition is harmful is perhaps most obvious in the economic realm, where it takes the form of monopolies. www.nutters.org /docs/feyerabend

European Competition Policy - Anti-Trust Policy Thus it is not easy to identify anti -competitive practice from pro competitive behaviour (this is true at a European and a national level). Anti Competitive Practices can take a number of forms, many of which are subtle (they are obviously trying not to catch the attention of the competition authorities!). The standard monopoly versus competition diagram can be used to show that, given 'similar cost conditions, prices will be lower and output higher in a competitive market than a monopoly market. www.tutor2u.net /economics/content/topics/europe/competition_policy_antitrust.htm

LCQ9: Anti-competitive behaviour in telecommunications market Offering telecommunications services to customers at prices which are below cost can constitute anti-competitive behaviour, particularly when the operator concerned holds a dominant position in the relevant market. However, in a competitive market, it is not uncommon for market players to price below cost for a short period of time. These ETS operators can thus enjoy a lower cost because they do not have to pay the termination rate, and the competition in the ETS market as a whole is affected. www.info.gov.hk /gia/general/200305/14/0514141.htm

Competition Commission ends ice cream manufacturers' anti-competitive behaviour - UK Commercial Arbitration Law Developments (Legal500.com) The manufacturers should be warned that if competition does not increase and anti-competitive practices re-establish themselves, the outcome of an investigation under the Competition Act 1998 would be considerably more painful. It is hoped that the undertakings given by Wall's, Nestlé, and Mars will promote competition between manufacturers, and enable independent distributors and wholesalers to establish a presence in the market. The Commission found that in the case of Wall's, when combined with the other practices already discussed, this adversely affected competition by providing incentives for retailers to purchase all their impulse ice cream from Wall's. www.icclaw.com /devs/uk/ec/ukee_110.htm

Hunt & Coombs Solicitors - HC Legal Update - Cartel Fines - March 2005 Businesses engaged in anti-competitive behaviour but fearful of these penalties do have an opportunity to report the behaviour to the authorities and give information about the cartel in which they are involved. The Office of Fair Trading considers one of the most damaging forms of anti-competitive behaviour to be the cartel - an arrangement between businesses with the purpose of increasing prices and the effect of consumers having a restricted choice of suppliers and having to pay increased prices for goods or services concerned. The main source of UK competition law is the Competition Act 1998, which prohibits agreements, practices and conduct that have a damaging effect on competition in the UK. www.hcsolicitors.co.uk /news_updates_cartel_fines.shtml

Jeffrey Zeldman Presents: The Daily Report Competitive products SoftWindows and Real PC are defunct.) Microsoft’s Virtual PC is not compatible with Apple’s new G5 series computers and Microsoft has not announced a release date for a compatible version. We dismissed that idea, not because Microsoft has a history of fair play, but because the company is not ready to capitalize on the annihilation by patent litigation of Real Networks, Macromedia’s Flash, Sun’s Java, and other competitive products and companies. It is not positioned to survive such a holocaust because its next generation product – one that could fare quite nicely in a world without plug-ins – is not on the market yet and will not be available for years. www.zeldman.com /daily/0903b.shtml

Anti competitive behaviour Cartels are prohibited by antitrust laws in most countries, however, they continue to exist nationally and internationally, formally and informally. Adam Smith, The Wealth of Nations, 1776 An example of a new international cartel is the one created by the members of the Asian Racing Federation and documented in the Good Neighbour Policy signed on September 1, 2003. De Beers has faced strong criticism recently, see articles on blood diamonds, and may be expected to face competition from artificial diamonds in the next few years. read-and-go.hopto.org /Anti-competitive-behaviour

Competition The UK and EU competition law regimes provide opportunities for businesses to protect themselves from anti-competitive behaviour, but those businesses that break the law (and the individuals concerned) need to be aware that they are subjecting themselves to the enormous powers of the competition authorities. The Competition Act 1998 came into force on 1 March 2000 and substantially changed the system of competition control within the UK. If businesses wish to avoid prolonged investigation, substantial fines, adverse publicity and loss of business due to contracts being unenforceable and their directors (and employees) wish to avoid facing disqualification and criminal sanctions, they need to ensure that all past and future agreements and conduct comply with the competition legislation. www.fladgate.com /80256840003B7472/pages/Competition

European & Competition : News : Serious Fraud Office investigates pharmaceuticals companies Competition authorities can also carry out unannounced visits, commonly known as "dawn raids", at your premises to look for documents which provide evidence of anti-competitive behaviour. Compliance programmes can reduce the risk of future breaches of competition law, and are also advisable even if your business appears to be complying with competition law. In 2001, the OFT made its first decision under Chapter II of the Competition Act of 1998 when it imposed a penalty of £3.2 million on Napp Pharmaceuticals, a Cambridge-based pharmaceutical company, for abuse of its dominant position in the market for the supply of sustained release morphine tablets and capsules in the United Kingdom. www.citylaw.co.uk /EU/html/print.asp?articleID=380

Competition Law - Antitrust in Ireland Firms engaging in cartels and all other types of anti-competitive behaviour remain face fines of up to €4m or 10% of turnover whichever is greater. The basic prohibitions on anti-competitive behaviour are contained in sections 4 and 5 of the 2002 Act. Cartels are organised and operated by individuals and companies who calculate that they can earn substantial profits from such behaviour. www.compecon.ie /IrishCompetitionLaw.htm

TELKOM: Anti-competitive behaviour The Competition Commission has found Telkom's conduct against value added network service (VANS) providers [ MetroWEB holds a VANS license ] to be anti-competitive and has referred the matter to the Competition Tribunal for determination. This places Telkom at a unique advantage strategically vis-à-vis its competitors, as it is able to leverage its position as the monopoly provider of facilities in the competitive market for value added network services. The Commission's investigation revealed that as a result of its actions, Telkom has further entrenched its dominant position in the broader telecommunications sector, at the expense of competition for the provision of VANS, and consequently to the detriment of the development and growth of the ICT sector generally. www.metroweb.co.za /news/antitrust.php

UK National Audit Office press notice - The Office of Telecommunications: Helping Consumers Benefit from Competition in the Telecommunications Market His report also found, however, that consumers are benefiting from Oftel's work to improve competition by investigating and addressing anti-competitive behaviour. Oftel has a particular interest in raising consumer awareness of the issues to be considered in choosing a supplier in view of its policy of encouraging the development of effective competition. The report focussed on the fixed line market as competition is less fully developed. www.nao.org.uk /pn/02-03/0203768.htm

Oftel's Competition Act strategy - 1 July 2002 1.1 Oftel has a choice when investigating behaviour that may be anti-competitive of using the Competition Act 1998 ("CAct") or powers under the sectoral regime. Our approach from now when faced with behaviour that could contravene both the CAct and the sectoral regime, will be to investigate under the CAct from the start. The major aspects of the proposed new regime are that National Competition Authorities and national courts will be given the power to apply Article 81(3) and to decide whether an agreement should be exempt from the Article 81(1) prohibition. www.ofcom.org.uk /static/archive/oftel/publications/about_oftel/2002/cact0602.htm

Pinsent Masons - Press releases - Construction Sector to be targeted for anti-competitive behaviour by OFT Guy Lougher, head of the competition practice at law firm Pinsent Masons said: “Companies in the construction and housing sectors, and suppliers of goods and services to them, need to take action now to review their practices and procedures to ensure they are not vulnerable to scrutiny. “For those companies that have infringed the competition rules and who are at the centre of an investigation or at risk of being investigated, the option to apply for leniency should be considered, which may result in reduced or zero fines. Pinsent Masons has one of the largest specialist EU and competition groups in the UK with considerable expertise and experience of advising clients on OFT investigations, dawn raids and making leniency applications especially in the construction and related sectors. www.pinsentmasons.com /press/press/constructionsect.aspx

POLICY AND STRATEGY TRENDS — OCTOBER - NOVEMBER - DECEMBER 2002 While many countries applied competition policy to the telecommunications sector before the WTO Agreement, the more than 70 countries that have adopted the Reference Paper are now legally required to do so as part of their obligations under WTO’s General Agreement on Trade in Services (GATS). However, in those markets, competition authorities may be able to intervene on an ex post basis, to apply competition law-based remedies, for instance to deal with cross-sectoral market entry by firms that have a dominant position in a different market segment. The major difficulty in applying competition law in the fast-changing ICT environment is that it may sometimes take several years to resolve a particular case, during which time the market, the technology and the actors involved can change significantly. www.itu.int /itunews/issue/2003/01/policy1.html

News2.html Although the Competition Act of 1991, now five years old, has had a significant impact on how business in Ireland is conducted, criticisms had been levelled because the 1991 Act was not perceived to include an effective system for enforcement of the competition rules which it introduced. Indeed, the Chairman of the Competition Authority has characterised the provisions of the 1996 Act as "unworkable" if they are not accompanied by a considerable increase in the resources available to the Authority. It remains to be seen whether the Competition Authority will reserve the exercise of its powers to prosecuting those who purposely and with a view to gain for themselves, flagrantly infringe the rules. www.clubi.ie /competition/compframesite/News2.html

Competition Authority Competition is the life-blood of the economy and competition law is designed to prevent anti-competitive behaviour. If you believe that a firm or firms are engaged in anti-competitive behaviour or that your firm is the victim of such behaviour you can contact the Competition Authority. Examples of the types of behaviour which are prohibited are agreements among competitors to fix prices, share markets or limit production. www.irlgov.ie /compauth/Broch2.htm

ACCC enhances rules to check anti-competitive behaviour: ZDNet Australia: News: Communications The Australian Competition and Consumer Commission (ACCC) is seeking comments for the third of its draft record keeping rules under the accounting separation regime for Telstra. The purpose of this is to determine whether those providers using the unconditioned local loop service, which is a wholesale service used to gain direct access to Telstra's copper network, would be able to viably provide broadband services," Willett said. He added that the draft rule is different from the ACCC's investigation into wholesale ADSL pricing, which is currently subject to a Competition Notice. www.zdnet.com.au /news/communications/0,2000061791,39159440,00.htm

BBC NEWS Business Microsoft hit by record EU fine Microsoft claims that it should not be fined at all because it did not know its behaviour would breach EU law. Competition Commissioner Mario Monti also insisted Microsoft must reveal secrets of its Windows software, which sits on 90% of the world's PCs. Industry experts say that the non-financial penalties are likely to hurt Microsoft more by opening it to further challenges and altering the regulatory environment it operates in. news.bbc.co.uk /1/hi/business/3563697.stm

DCITA - Telecommunications anti-competitive conduct provisions Part XIB of the Trade Practices Act is designed to prevent members of the industry with substantial degree of market power from engaging in anti-competitive behaviour. Under Part XIB, the Australian Competition and Consumer Commission (ACCC) has the power to issue a Part A competition notice stating that a carriage service provider has engaged or is engaging in anti-competitive conduct, such as 'price squeezing'. The ACCC must report to the Minister on the operation of competitive safeguards in the telecommunications industry ( Division 11 of Part XIB of the Trade Practices Act), and issues relating to charges paid by consumers ( Division 12 of Part XIB of the Trade Practices Act). www.dcita.gov.au /tel/competition_policy_and_framework/telecommunications_anti-competitive_conduct_provisions

INSTEV49-e In general, under the competition law you do not find big business litigation against small business for the simple reason that small business, being small, rarely engages in behaviour that is anti-competitive in the first place. But for normal unlawful anti-competitive behaviour, it's possible for private individuals, whether they be consumers or business, to take action in the courts to block the behaviour, to stop it, and to get damages or other orders. But our members are seeing a number of signs, as you drill down into consumer behaviour, that suggest that consumers are becoming more cautious and their behaviour is dramatically different from what we have seen before or in preceding periods leading up to a recession. www.parl.gc.ca /InfoComDoc/37/1/INST/Meetings/Evidence/instev49-e.htm

DETE - Public Relations - Tánaiste publishes report into allegations of anti-competitive practices in the beef industry Independent group finds no evidence of anti-competitive behaviour Following detailed analysis of the industry, the Group’s report concludes that they have found no evidence of anti-competitive behaviour either in the pattern of cattle prices or in profits. The Tánaiste and Minister for Enterprise, Trade and Employment, Mary Harney, has today (21 September, 2000) published the Report of the Independent Group which was established in January last to examine allegations of anti-competitive practices in the Beef Industry. The Group also made a number of recommendations including one that the status of collective negotiations, as sought by the farming organisations in the dispute that led to the inquiry, be clarified in the context of competition law. www.entemp.ie /press/2000/210900.htm

Microsoft cleared of anti-competitive behaviour - silicon.com The Brazilian government itself is a demonstration of open competition in the operating systems market — it's the biggest public sector user of Linux in South America and the country has seen open-source technology make serious inroads into the financial sector. As Gates and chums prepare to take their appeal to the EU, the Brazilian government has found the software company not guilty of stifling software competition after six long years of investigation. The legal saga that has dogged Microsoft across several continents and extracted hundreds of millions of dollars from company coffers seems finally to be going in Redmond's favour. management.silicon.com /government/0,39024677,39121182,00.htm

eBay faces DoJ antitrust investigation - Information World Review The US Department of Justice (DoJ) has launched an antitrust investigation of the largest online auction site, eBay, to establish whether it is engaging in anti competitive behaviour. But eBay has blocked some software companies from accessing its web site and the DoJ is studying whether such a practice is anti competitive. Such programs are used to index content, which is available on sites across the Web, and to gather information on the competition. www.iwr.co.uk /news/106176

Daavlin Corp and Amjo Corp phototherapy UV lamps. It is the policy of Beat Psoriasis to never engage in defamatory, insulting or anti-competitive behaviour. However, due to recent unhealthy encounters with our competitors, the need has arisen to refute some anti-competitive propaganda. Healthy competition results in better prices and higher levels of support for the end users, we welcome competitors. www.beatpsoriasis.com /daavlin.htm

Trinidad and Tobago Review Thus, competition is defined as “the absence of monopoly power in a market” and the objective of competition policy is to eliminate imperfect, “anti-competitive” behaviour which distorts and disrupts competition. While we must address price-fixing, cartel behaviour and other anti-competitive activities, especially by large multinational corporations, we cannot assume that limiting or eliminating these practices will enable us to be world-class competitors and to be able to penetrate global markets. Here, firm competitiveness is seen as the capacity to produce and sell a product which can match or exceed a competitor's product on the basis of lower cost, greater efficiency, higher quality, superior service, or some combination of these attributes. www.tntreview.com /rhamilton1204.htm

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