In
competition law, a group boycott is a type of
secondary boycott in which two or more
competitors
Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indivi ...
in a
relevant market
In competition law, a relevant market is a market in which a particular product or service is sold. It is the intersection of a relevant product market and a relevant geographic market. The European Commission defines a relevant market and its pro ...
refuse to conduct business with a firm unless the firm agrees to cease doing business with an actual or potential competitor of the firms conducting the boycott. It is a form of
refusal to deal
Though in general, each business may decide with whom they wish to transact, there are some situations when a refusal to deal may be considered an unlawful anti-competitive practice, if it prevents or reduces competition in a market. The unlawful ...
, and can be a method of shutting a competitor out of a market, or preventing entry of a new firm into a market.
In the United States, such conduct can be held to violate the
Sherman Antitrust Act
The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author.
...
. Depending upon the nature of the boycott, the courts may apply the
rule of reason, a quick look analysis, or hold that the boycott is
illegal ''per se''. There is a presumption in favor of a rule of reason standard.
It may also be considered a form of
civil conspiracy.
See also
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Freedom of association
Freedom of association encompasses both an individual's right to join or leave groups voluntarily, the right of the group to take collective action to pursue the interests of its members, and the right of an association to accept or decline mem ...
*
Refusal to deal
Though in general, each business may decide with whom they wish to transact, there are some situations when a refusal to deal may be considered an unlawful anti-competitive practice, if it prevents or reduces competition in a market. The unlawful ...
*
Primary boycott
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Secondary boycott
References
Anti-competitive practices
Competition law
Boycotts
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