What is the law of competition?
The law of competition, also known as antitrust law, is the body of law in Washington that regulates businesses and the marketplace to promote competition. Its main goal is to protect consumers from anti-competitive practices and to create and promote a fair and competitive marketplace for businesses. The law of competition prohibits agreements between businesses that restrict competition and unfair pricing practices. It also prohibits activities or behavior by businesses or individuals that unfairly limit competition. This includes things like price setting and market division, where firms agree on specific terms like who will sell in which markets and at what prices. In addition, the law of competition seeks to protect small businesses and individuals from monopolization and predatory pricing. Monopolization occurs when one firm successfully creates a monopoly by controlling a market, restricting competition, and charging prices it chooses. Predatory pricing is when a business sets prices below its costs in order to drive competitors out of the market. The law of competition also regulates mergers and acquisitions to ensure that any potential deals do not create a monopoly. Ultimately, the law of competition works to protect competition and promote a fair and open marketplace. By creating a level playing field where businesses are able to compete on terms that benefit consumers and dampen anti-competitive practices, the law is designed to help foster economic growth in Washington.
Related FAQs
What are the requirements for maintaining a business license?What is the difference between a copyright and a trademark?
What is the purpose of corporate tax?
What is the purpose of anti-trust law?
What are the responsibilities of a corporate officer?
What are the fiduciary duties of a corporate officer?
What are the legal requirements for hiring employees?
What is the process for winding up a business?
What is the difference between criminal and civil law?
What is the difference between tax avoidance and tax evasion?
Related Blog Posts
Understanding Business Law: What Every Business Needs to Know - July 31, 20237 Key Aspects of Business Law Every Entrepreneur Should Be Aware Of - August 7, 2023
The Essential Elements of Business Contracts and Agreements - August 14, 2023
5 Questions Every Business Should Ask Before Starting a Partnership - August 21, 2023
What You Must Know About Company Structure and Formation - August 28, 2023