What is a foreclosure in competition law?
By foreclosure, we refer to a situation where situation where a VI firm might sacrifice some profit in one part of its business (say, wholesale) in order to distort another market (say, retail) in such a way that independent firms are made worse off, to the overall benefits of the VI firm..
What is a market foreclosure in economics?
market foreclosure (usually uncountable, plural market foreclosures) (economics) The use or result of commercial practices by one market participant or a group of market participants (possibly with governmental assistance) that limit the access of buyers and sellers to each other..
What is a vertical foreclosure in antitrust?
Market foreclosure or vertical foreclosure, is the production limitation put on a producing organisation if either it is denied access to a supplier (upstream foreclosure), or it is denied access to a downstream buyer (downstream foreclosure)..
What is foreclosure in competition?
Foreclosure occurs when a dominant firm leverages monopoly power in one segment of the market to another potentially competitive segment of the market.
In theory, foreclosure can occur both through the use of vertical restraints such as exclusive dealing and via horizontal restraints, such as bundled pricing..
What is foreclosure of market competition law?
In the competition law context, foreclosure describes a situation in which a firm eliminates or impedes actual or potential competitors' access to a market..
What is the ability to foreclose?
The right of foreclosure describes a lender's ability to take possession of a property through a legal process called foreclosure when a homeowner defaults on mortgage payments.
The mortgage's terms will outline the conditions under which the lender has the right to foreclose..
What is the meaning of market foreclosure?
Market foreclosure or vertical foreclosure, is the production limitation put on a producing organisation if either it is denied access to a supplier (upstream foreclosure), or it is denied access to a downstream buyer (downstream foreclosure)..
- Foreclosure occurs when a dominant firm leverages monopoly power in one segment of the market to another potentially competitive segment of the market.
In theory, foreclosure can occur both through the use of vertical restraints such as exclusive dealing and via horizontal restraints, such as bundled pricing. - Input foreclosure also arises, if the merged firm stops supplying rivals of its downstream entity, denying completely the access to the input.
Conversely, downstream- or customer foreclosure occurs where the downstream firm exclusively purchases inputs from the upstream divisions of the combined firms post-merger. - It can occur when a merger between vertically related companies results in the restriction or suppression of access by competitors (current or potential) upstream to a sufficient customer base, reducing their ability or incentive to compete.
