Competition is the lifeblood of the free market. People with new ideas can compete with existing companies by offering better products or lower prices than their established competitors. Many business leaders appreciate the challenge of a competitor and may try to rise to the occasion by innovating.
Unfortunately, some business leaders have the opposite reaction. They aggressively try to stamp out any competition that could reduce their market share. Some of these companies may cross the line from aggressively competing to unfairly competing. They may break the law in their eagerness to prevent a competitor from thriving in the same industry.
When unfair competition negatively impacts a business, litigation might be a means to resolve the issue.
What constitutes unfair competition?
Unfair competition often involves a violation of antitrust laws. For example, multiple competitors unhappy with a recent startup might negotiate a price-fixing scheme in an attempt to push a competitor out of the local market. Other times, two or more competitors may attempt to merge their operations in an attempt to saturate the market.
Unfair competition could also potentially involve corporate espionage. A competitor might even attempt to poach employees as a means of learning a company’s trade secrets and preventing them from effectively competing on the open market.
Defamation, possibly by spreading rumors or falsifying reviews on the internet, could also lead to claims of unfair competitive practices. If company leaders can prove that unfair competition occurred, they may have grounds for litigation.
How can the courts help?
The civil courts can provide several forms of relief for businesses harmed by unfair competition and illegal business practices. Judges have the authority to issue injunctions. They can effectively forbid a competitor from continuing to engage in inappropriate competitive practices or from utilizing ill-gotten information, including trade secrets.
In cases where the unfair competition has had a verifiable impact on the targeted company, litigation could result in an award of damages. The courts may provide financial compensation for lost sales and other economic setbacks associated with the unfair competition.
Reviewing records of conduct perceived as unfair competition with a skilled legal team can help business leaders evaluate their options. Timely legal action could help protect an organization whose competitive advantages might be vulnerable because of the misconduct of jealous competitors.