Can I Claim Compensation
Both individuals and organisations affected by anti-competitive behaviour can be eligible for Competition Compensation. Anti-competitive behaviour that can lead to claims can include:
Price Fixing
Where organisations collude to set prices higher to yield greater profit margins; at the expense of the consumer.
Output Limitation
Where output is restricted which can drive up prices by distorting the principle of supply and demand.
Reducing/Restricting Innovation
A growing problem where innovation that could reduce prices - at the sacrifice of profitability - is not utilised. If organisations informally agree not to push through new innovations then they can all benefit from maintaining their profit margins.
Equally prices can be fixed following on from new innovation, which is also anti-competitive behaviour.
Information Sharing
Organisations sharing information on suppliers, for example, to distort the market for their own gain.
Abuse of Market Position
Where organisations can abuse market dominance or market share which does not allow for a level playing field.
Examples include:
- Predatory pricing - setting extremely low prices to push others out of the market with the long term view of market dominance
- Excessive pricing - by being the biggest supplier and abusing power over the market
- Price discrimination - setting different prices for different consumer groups (perhaps by location)
Essentially, anything that can prevent, restrict, or distort fair competition in the market can be deemed as anti-competitive behaviour. Price fixing is often formulated through Price Cartels that breach competition legislation both in the UK and across the EU.
