restrictive (adjective, re-stric-tive, \ rɪˈstrɪktɪv \) trade (noun, trade, \ treɪd \) practices (noun, prac-tices, \ ˈpræktɪsəz \)
Definition: are practices adopted by cooperating companies that control the production and distribution of a specific product type to achieve a monopolistic position in the specific market. Such practices include the following acts performed by a group of conspired organizations: a) boycotts, b) price fixing, c) resale price regulations, d) anti-competition aimed contracts, e) exclusive deals, f) mergers or acquisitions that result in the substantial decrease of competition on a market, and g) misuse of market influence.
In a Sentence:
- The two biggest companies in the smartphone market are using restrictive trade practices to monopolize the industry. They keep buying out smaller organizations, attempting to get rid of competition and limit the consumers’ choice.
- Nestle has proven to use restrictive trade practices in the past, forbidding resellers to sell their products below a certain price. While such an approach made sense, it wasn’t fair to markets in third-world countries.
Synonyms and related words: restrictive business practices, restrictive specification, restrictive endorsement, restrictions
