Business Law Report: Anti-Competitive Practices and Monopoly Analysis

This report provides an overview of business law, focusing on anti-competitive practices and monopolies within the UK market. It explores key concepts such as anti-competitive agreements, market dominance, and the role of the Competition Commission in regulating these practices. The report examines specific legislation, including the relevant sections of the treaty, and the implications of violating these regulations. The report also includes the analysis of the Tesco and Safeway merger, and the criteria used to assess dominant positions in the common market of the EU. The report concludes with a discussion of exemptions for potentially anti-competitive practices. This assignment is designed to provide students with a comprehensive understanding of the legal framework governing competition and business practices.

Business Law

Introduction
Business law can be defined as the body of law which is applied to
the conduct of persons and businesses who are engaged in sales,
merchandising, trade and commerce, relations and rights. It is the
branch of the civil law and is concerned with both public and private
law. It covers all the laws which explains how business should work
and make its formation. This report is based on the topic of business
law on the case study of Ben who gets defected car.

3.1 Anti-competitive practice legislation and
monopolies in UK
Anti-competitive agreements include limiting production in order
to drive prices, price fixing, agreement regarding not to sell to the
customer of competitors. In UK, monopoly can be defined as the
strategy of business which has more than 25% market share.
Monopoly can be defined as where there are more buyers and less
sellers. In such cases, sellers misuse their positions and take undue
advantage.

Continued..
Various activities are there, which are included in anti-competitive
practises, which can be defined as follows:
Cartels: In this there is the group of businessmen who belongs to
same market and joins forces against suppliers, consumers etc.
Restrictive practices: This helps in restricting such activities in
an organisation which are unethical and illegal.

3.2 Role of competition commission
The role of market authority competition commission can be
described as follows:
 Investigating mergers which will help in restricting
mergers.
 Investigation in market and conduct of market study where
there is problems of consumers and competition.

Continued..
 To consider regulatory appeals and references.
As per the case of Tesco, when it wished to get merge with
Safeway, competition commission make investigation and make
decision that the firm will be having too much monopoly power.
Merger has been allowed by them between Safe way and
Morrisons on some conditions that Morrison will get rid of
southern stores where there is overlapping.

3.3 Dominant positions in the common market
of EU
Two tests are there in order to assess whether chapter II
prohibition or Article 82 applies:
 Whether there is dominant undertaking, and
 If it is, in case it is abusing that dominant position.
Two questions has been raised by the first test which are
considered under: i) the market definition in which undertaking is
supposed to be dominant and ii) in case it is dominant in that
market.

3.4 Exemptions for potentially anti-competitive
practices
As per section 101(1) of the treaty, restrictions and power is laid down to EU
to fine 10% for such organisations who keeps on violating restrictions and if
article 101 is not there in any agreement then it will be void agreement.

References
Folsom, R.H., Gordon, M.W., Spanogle, J.A., Fitzgerald, P.L. and
Van Alstine, M.P., 2012. International business transactions: a
problem-oriented coursebook.
Kitagawa, Z., 2016. Dispute Settlement (Vol. 5). Doing Business in
Japan.
Percival, R.V., Schroeder, C.H., Miller, A.S. and Leape, J.P., 2013.
Environmental regulation: Law, science, and policy. Wolters
Kluwer Law & Business.
DiMatteo, L.A., 2010. Strategic contracting: Contract law as a
source of competitive advantage. American Business Law Journal,
47(4), pp.727-794.