Restricting Competition:
Restriction of competition refers to practices that prevent or reduce competition in a market. This occurs whenever a business or group of businesses act in a way that limits the competitive behavior of themselves or others. It can involve practices such as price-fixing, market sharing, or production limitations. These practices are typically considered anti-competitive because they can lead to higher prices, lower quality products, reduced innovation, and fewer choices for consumers.

Types of Restricting Competition:

1. Horizontal Competition Restriction: Agreements or actions between competing businesses (e.g., colluding on prices or market shares) that manipulate competition among all competitors in the same industry.
2. Vertical Competition Restriction: Agreements between businesses at different levels of the supply chain (e.g., manufacturer and distributor agreements) to restrict the conditions under which products can be sold, such as exclusive distribution rights.

Examples Include:

• Price fixing.
• Market allocation.
• Bid rigging.
• Limiting production or supply.

Such actions are often regulated and prohibited by competition laws to ensure a fair and efficient market system.