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 l ...

, a group boycott is a type of

secondary boycott Secondary may refer to: Science and nature * Secondary emission, of particles ** Secondary electrons, electrons generated as ionization products * The secondary winding, or the electrical or electronic circuit connected to the secondary winding ...

in which two or more competitors in a relevant market refuse to conduct business with a firm unless the firm agrees to cease doing business with an actual or potential competitor of the firms conducting the boycott. It is a form of refusal to deal, and can be a method of shutting a competitor out of a market, or preventing entry of a new firm into a market. In the United States, such conduct can be held to violate the Sherman Antitrust Act. Depending upon the nature of the boycott, the courts may apply the

rule of reason The rule of reason is a legal doctrine used to interpret the Sherman Antitrust Act, one of the cornerstones of United States antitrust law. While some actions like price-fixing are considered illegal ''per se', ''other actions, such as poss ...

, a quick look analysis, or hold that the boycott is illegal ''per se''. There is a presumption in favor of a rule of reason standard. It may also be considered a form of

civil conspiracy A civil conspiracy is a form of conspiracy involving an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective.

References

Anti-competitive practices Competition law Boycotts {{law-term-stub

See also

References