Beware of Unfair Competition; in Association with Ward Hadaway Law Firm Angelo Basu, Associate in the EU and Competition Team at Ward Hadaway, Looks at How Competition Law Can Help Fast-Growing Companies Continue to Thrive
THE past year may have been a difficult one for business and there may yet be further challenges ahead, but the Fastest 50 shows that the region is in good health and has many businesses which are well placed to weather the storms.
In challenging economic conditions, the most efficient, nimble and innovative businesses, like those found in the Fastest 50, can gain the biggest advantages.
However, tough times also make it increasingly appealing for less efficient businesses to seek out whatever means they can to shore up their positions. One of the common ways of doing this is to be tempted into anti-competitive behaviour like agreeing to reduce the risk of a price war and reducing margins by entering into understandings with other hard-pressed businesses. Large companies may try to abuse their strong existing market positions to try and drive out more agile new and growing businesses.
This harms efficient businesses which are no longer able to take advantage of their leaner operations without the risk of unfair retaliation. It also harms customers who end up paying more than they ought.
In the past, Competition Law has been seen to be principally a compliance and risk reduction issue. Certainly it is worthwhile for all businesses to ensure that they behave in a competitive manner.
However, for those businesses like the Fastest 50 which intend to thrive in difficult conditions rather than use fair means or foul merely to survive, it is also worth remembering that Competition Law is there to protect them and can be used to thwart attempts to harm them.
Competition law is there to help stamp out such practices and to let businesses like the Fastest 50 reap the full rewards of their endeavours. …