![]() ![]() Restriction of supply to distributors - again with a view to maintaining high prices and profits. Limiting production - perhaps by failing to expand or invest, so increasing prices and profits but disadvantaging customers who cannot easily move elsewhere. Exclusionary abuse is aimed at excluding or removing competitors from the market.Īnd it is hardly a new phenomenon. Exploitative abuse enables the firm to increase its profits by exploiting its market power a step along the road, if you like, towards having monopoly power. ![]() They can be divided into two broad groups. The most commonly attacked forms of abuse are listed below. Such behaviour is, in law, abuse of significant market power and can lead to the imposition of large fines of up to 10% of turnover in all of the relevant years. ![]() Or it may refuse to supply a customer who threatens to start buying part of their supplies from a smaller competitor. A large company may, for instance, temporarily reduce certain prices so as to squeeze a smaller rival out of business. We are all delighted when firms do something special to retain our business - not just being efficient and customer friendly, but also by offering volume discounts (" three for the price of two", " buy one, get one free") and loyalty discounts such as airmiles, reward cards, Nectar cards and Clubcards.īut there comes a point when such behaviour begins to trap us. ![]()
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