Definition: occur when the private or public sector companies and manufacturers abuse their dominant market status to prevent or severely restrict the appearance of new suppliers or competitors, or when they use other means to prohibit a just and open competition on the market. Such practices include the allocation of clients and markets among the already established producers, conspiracies to fix prices, and discriminatory pricing strategies that prevent new organizations from entering the market.
In a Sentence:
It’s impossible to enter the web hosting service market right now since all the reigning giants are using restrictive business practices to protect their position. We’ll be better off searching for a different competitive space for our new company.
The female clothing industry is full of companies that use restrictive business practices. Just recently, Genu-Ware, Bionacci, and Eleganta have conspired to lower their prices, so that smaller brands won’t be able to match them and attract customers.
Synonyms and related words: restrictive trade practices, good manufacturing practices, cutthroat competition, unfair trade practices law