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When Marketing Practices Raise Antitrust Concerns
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This is an MIT Sloan Management Review article. Increasingly, the government agencies that enforce antitrust laws are scrutinizing organizations' marketing, and shifts in practices in the early 2000s have reinvigorated enforcement activity. Understanding what behavior raises antitrust flags is critical for companies with dominant market share in one or more product categories. There has been increasing scrutiny of shelf-slotting practices and category management in the retail sector, for example. Takes managers through the process of determining antitrust violation and lays out five important cases in which practices that seemed to fit with competitive norms or good citizenship, in fact, were ruled to be breaches of antitrust law--in some cases, with momentous penalties. Describes a sampling of the tactics that can help to temper competitiveness with caution. Concludes that it is fundamental for managers to look at their competitive tactics--and at the business strategies and processes that support those tactics--through the eyes of antitrust regulators.