Quick guides
Unfair competition
The term “Unfair competition” captures conduct by businesses which amount to gaining an unfair advantage over their competitors, or unfairly preventing other businesses from trading successfully.
Unfair competition may consist of:
- Abuse of a dominant position. A business holds a dominant position if has such a position of strength that it is not constrained by competitive pressures. Possible forms of abuse of this economic power that might lead to unfair competition include giving an unjustified competitive advantage to some customers compared to others, and denying access to essential inputs to competitors in other markets so as to drive them out of the market. See complaining about anti-competitive practices.
- State aid, where a business gains an unfair competitive advantage as a result of a State subsidy. See complaining about anti-competitive practices.
- Collusive behaviour, for example if incumbents in an industry agree to boycott a new competitor, thereby preventing entry. See complaining about anti-competitive practices.
- Trade mark infringement, where a business misuses a competitor's trade mark.
- Passing off, where a business misleads customers into confusing its products with those of a competitor.
- Patent or registered design right infringement, where a trader uses, without authorisation, an innovation over which the law provides a time-limited monopoly.
- Copyright or unregistered design right infringement, where a trader copies, without authorisation and outside the copying allowed by law, materials created by a competitor.
- Misuse of confidential information, where a trader misuses information obtained under conditions of secrecy for unauthorised purposes.
- Misleading advertising, including misleading comparative advertising.
- Misuse of the Internet domain name registration system.
- In some jurisdictions, misappropriating goodwill by other means, even without deception or infringement of any statutory protections. This cause of action does not appear to exist as such in the UK jurisdiction; the position in England and Wales is summarised at paragraphs 165-167 and following of the L'Oréal v Bellure judgment (2006).
Reckon's expertise relates primarily to the first three types listed above. Our guide to complaining about anti-competitive practices outlines our services to potential victims of these kinds of unfair competition.
We can also provide advice on other areas of competition law. For example, in some cases, the abusive exploitation of intellectual property or the misuse of intellectual property protection mechanisms may itself infringe competition law.
About this page
The information on this page has been compiled by Reckon staff on the basis of published sources. We researched this information to develop our business.
This page is for general information only. There may be errors or omissions in the information that was obtained, and the situation may have changed since the information was collected. It is not a substitute for professional or legal advice tailored to your circumstances.
Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law. Contact us if you require specific information or advice on competition law issues. We are not authorised to provide financial advice or to conduct litigation.
This page was last reviewed in June 2007 by Franck Latrémolière.