Combination in restraint of trade refers to an agreement or arrangement among competing businesses or individuals that limits, hinders, or suppresses free competition within a specific industry or market. It involves a collaboration or understanding between parties that aims to control or manipulate certain aspects of trade and commerce to their advantage, often at the expense of fair competition, consumer choice, and market efficiency.
This type of combination typically involves actions that restrict trade, such as price-fixing, market allocation, output restrictions, bid rigging, or other anti-competitive practices. It can manifest in various forms, including cartels, monopolies, trusts, agreements, or contracts between competitors with the intention of curtailing rivalry, keeping prices artificially high, or otherwise altering market dynamics to their mutual benefit.
Combination in restraint of trade is generally viewed negatively by competition authorities and regulatory bodies, as it distorts markets, limits innovation, and results in higher prices and reduced consumer welfare. Consequently, many jurisdictions have laws and regulations in place to prevent and prohibit such anti-competitive behavior. These laws aim to promote fair competition, protect consumer interests, encourage market efficiency, and enable businesses to thrive on their own merits instead of collusive practices.
Enforcement of laws against combination in restraint of trade requires regulators to investigate and take appropriate actions against those engaged in anti-competitive behavior. This can include imposing fines, structural remedies such as breaking up monopolies, or even criminal charges in severe cases.
