Fair Competition Law and Legal Definition

Competition refers to the efforts of two or more commercial businesses to secure the same business from third parties. Fair competition means a just, open, and equitable competition between business competitors.

Many countries enforce fair competition laws. The U.S. antitrust laws aim to prohibit agreements or actions that reduce competition and harm customers. A healthy competition can improve a country’s economic performance, open business opportunities to its citizens and reduce the cost of goods and services throughout the economy.