Though in general, each business may decide with whom they wish to transact, there are some situations when a refusal to deal may be considered an unlawful
anti-competitive practice, if it prevents or reduces
competition
Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indi ...
in a
market. The unlawful behaviour may involve two or more companies refusing to use, buy from or otherwise deal with a person or business, such as a competitor, for the purpose of inflicting some economic loss on the target or otherwise force them out of the market. A refusal to deal (also known as a group
boycott) is forbidden in some countries which have restricted market economies, though the actual acts or situations which may constitute such unacceptable behaviour may vary significantly between jurisdictions.
Definitions
Australian Competition & Consumer Commission defines the refusal to deal as:
The Indian Competition Act 2002 defines the refusal to deal as:
In Canada, refusal to deal is considered a restrictive trade practice and is defined in Section 75 of the Competition Act (R.S.C., 1985, c. C-34).
See also
* ''
ACCC v Cabcharge Australia Ltd''
*
Commercial law
Commercial law (or business law), which is also known by other names such as mercantile law or trade law depending on jurisdiction; is the body of law that applies to the rights, relations, and conduct of Legal person, persons and organizations ...
*
Competition law
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...
*
Essential facilities doctrine
*
Exclusive dealing
*
Market economy
References
Anti-competitive practices
Competition law
Business law
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