Free and open markets are a crucial component of modern capitalism. The government intervenes as little as possible in most markets to allow for fair competition and innovation. Unfortunately, there are some bad players who may engage in unfair competitive practices that deny other organizations, entrepreneurs or professionals a reasonable opportunity.
They can also engage in behaviors that cause active damage to existing businesses. Unfair competition can give one company an inappropriate competitive advantage and can cause active harm to other organizations. Going to civil court to request an injunction is one way to respond to unfair competition.
What constitutes unfair competition?
Unfair competition comes in many forms. Some businesses engage in corporate espionage. They attempt to infiltrate a competitor’s organization looking for trade secrets such as recipes and client lists. The goal is to use those protected trade secrets to diminish that company’s market share or competitive edge.
Other times, unfair competition could involve price-fixing schemes. Multiple businesses or professionals might agree to undercut the market by setting unsustainable prices. They do this to drive out competitors. After they succeed, they can then increase their prices however they see fit.
Occasionally, businesses merge with one another or acquire competitors in a manner that gives them too much control over the local market. All of those forms of unfair competition can make it impossible for businesses that follow the law to compete.
How injunctions help
Injunctions are essentially court orders addressing the behavior of one party. A judge can prohibit certain types of economic activity with an injunction. They can also compel a business to correct certain issues or perform certain services with an injunction.
In scenarios where one business has proof that another inappropriately acquired trade secrets, an injunction could prevent the competitor from using or publishing that information. Injunctions can lead to the rapid resolution of unfair business practices that could cause financial harm to a competitor.
In some cases, it may also be possible to seek damages when pursuing an injunction. The courts may order one business to compensate another for the economic impact that inappropriate competitive activity has had on the plaintiff organization.
Learning more about the various solutions available when pursuing business litigation could help business owners and leaders within organizations fight back against the misconduct of others. Injunctions can help prevent continued abusive behaviors by other businesses.