Competition and Trade Regulation
Core concepts
Competition law targets anti-competitive agreements, abuse of dominance, and merger control. Core prohibitions include price-fixing, market allocation, bid-rigging, and output restrictions among competitors. Vertical restraints (resale price maintenance, exclusive dealing, territorial restrictions) are assessed under rule-of-reason or block-exemption frameworks. Abuse of dominance covers predatory pricing, refusal to deal, tying, and margin squeeze. Merger review turns on thresholds and substantive tests (substantial lessening of competition). Enforcement includes administrative penalties, private actions, and leniency programs. Extraterritoriality and international cooperation matter in cross-border cases.
Traps
- Assuming all vertical restraints are per se illegal; most are assessed contextually.
- Confusing dominance with monopoly; dominance is a threshold, abuse is conduct.
- Missing notification thresholds for mergers.
- Overlooking leniency programs that reward whistleblowers.
- Forgetting that trade regulation also covers misleading advertising and consumer protection overlaps.
Worked rule of thumb
Use the M-D-E framework: Market definition, Dominance assessment, Effect on competition. For agreements, ask whether the restraint is horizontal (usually serious) or vertical (usually contextual).