Explain Monopolizing of a Competition Act

Question

Explain Monopolizing of a Competition Act?

Answer 1

The Act also prohibits certain types of conduct by a monopoly or very powerful, dominant firm that are contrary to the public interest. In particular, it bans four types of pricing practices:-

1. Discriminatory pricing: A seller makes it a practice to knowingly discriminate between purchasers in terms of prices.

2. Regional price discrimination: A seller charges lower prices in one region than elsewhere with a view to eliminating competition.

3. Predatory pricing:  A seller temporarily reduces prices to an unreasonably low level with the intent of driving away competitors.

4. Resale price maintenance: A supplier of goods attempts to control their retail price.