Anti-trust corporate behaviour

Anti-competitive business practices
Restriction of commercial competition
Exclusionist practices of business

Nature

Anti-trust corporate behavior refers to practices by companies that undermine competition, leading to monopolies or oligopolies that harm consumers and the economy. Such behavior includes price-fixing, market allocation, and predatory pricing, which stifle innovation and limit choices for consumers. Anti-trust laws aim to promote fair competition and prevent corporate practices that distort market dynamics. When companies engage in anti-trust behavior, they can manipulate market conditions to their advantage, resulting in higher prices, reduced quality, and less innovation, ultimately threatening the principles of a free market economy. Addressing these issues is crucial for maintaining healthy competition.

Claim

Liberalization of trade and investment inside and outside WTO has accelerated globalization and, together with technological progress, enabled TNCs to pursue worldwide strategies. Major TNCs now focus on the entire world market and seek to achieve leading world market positions in their core business through mergers, acquisitions, strategic alliances, investment or trade. While dominant market positions are not anti-competitive in themselves, certain practices applied by companies enjoying such positions can limit international competition and market entry by competitors.

Anti-competitive practices raise import costs and limit market access and market entry. In this situation, some developing countries find it difficult to establish and enforce national competition rules to safeguard market forces and free market entry. In order to enable those countries to better address and discipline anti-competitive practices, it is essential for countries which have national competition rules in place to back them up with an appropriate system of enforcement.

Counter-claim

Anti-trust corporate behavior is often overstated as a problem. In a dynamic market, competition drives innovation and benefits consumers. Companies should be free to pursue growth without excessive regulation. The focus should be on fostering entrepreneurship rather than stifling successful businesses. Overzealous anti-trust actions can hinder progress and economic development, ultimately harming the very consumers they aim to protect. Let the market decide, rather than imposing unnecessary constraints on corporate success.