Restricting business practices
Synonyms: Applying restrictive business practice
Description: "Restrictive business practice" means action or behaviour by an enterprise which, through acquisition of a dominant position of market power, limits access to markets or otherwise unduly restrains competition. It also refers to formal, informal, written or unwritten agreements or arrangements among enterprises which have the same effect. Such practices are used in order to achieve high profits, at the expense of consumers, without being exposed to competition.
Implementation: Governments increasingly recognize that their country's position in world production, marketing and distribution depends on the strength of their national "champion enterprises". There is a shift from the old-style trade barriers to the more direct enhancement of national champion enterprises in the wake of international competition. In the name of competition, enterprises are encouraged to use all the restrictive practices at their disposal in order to strengthen their positions in international trade transactions.
Subjects: ApplicationBusiness enterprisesRestrictions
Type Classification: D: Detailed strategies