Fair competition is a cornerstone of capitalism. Compete with one another for public resources, and workers compete with one another for the best positions at successful organizations. Competition drives innovation and better performance in theory.
However, some businesses cannot abide by strong competition and will do illegal and unethical things to give themselves an advantage. When the company you run starts to suffer because of unfair competition, you may be in a position to take the other organization to civil court.
What are some examples of unfair competition?
1. Price fixing
Companies should not try to manipulate the market by intentionally altering their prices in an inappropriate manner. Especially if you are a relative newcomer on the local market, your competitors may resent your success.
They get together to undercut your prices through price-fixing schemes, you may not be able to continue operating. They would then likely increase their prices after you stop trying to compete with them. Price fixing is an unfair manipulation of the local economy and may be an actionable form of business misconduct.
2. Corporate espionage
Businesses that struggle to compete with you may try to steal your trade secrets. Whether you have a proprietary recipe or a unique manufacturing process, they may potentially try to bribe one of your workers or hire a former employee specifically to illegally make use of your organization’s trade secrets.
If a competitor has violated your intellectual property rights, you may be able to take them to court to force them to stop and possibly to seek damages for your losses.
Recognizing when you can initiate business litigation to fight back against unfair competition can help you protect your business’s interests.