Restrictive trade practices are acts of collusion among market dominators in a certain industry to control prices and prevent the emergence of new competition. In the United Kingdom, these methods were prohibited by the Restrictive Trade Practice Act of 1956, which was repealed in 2000.
How Is It Done?
Restrictive trade policies, otherwise called restrictive business practices, aim to prevent the "abuse of dominant market position by private or public sector producers," according to Businessdictionary.com. This collusion in pricing and manufacturing content can keep new suppliers from emerging on the market--effectively ensuring current and future market share.
The U.K. Law
The U.K.'s Restrictive Trade Practices Act of 1956 prohibited manufacturers from colluding to price their goods, even requiring them to register any restrictive agreements with the country's Registrar of Restrictive Practices, which could monitor and investigate any unusual phenomena.
Away it Goes
The 1956 law was later wrapped into the Restrictive Practices Act of 1976, which expanded the prohibitions against RBPs. The law was largely repealed in a bout of deregulation in 2000.
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