Interplay Between Restraint On Trade Clauses And Competition Law: Legal Challenges And Economic Perspective
- IJLLR Journal
- Jan 27
- 1 min read
Ruchitha R, School of Law, Christ (Deemed to be University)
ABSTRACT
Restraint of trade clauses have now become rather common in the body of business-to-business agreements. It may bar parties from undertaking competitive activities even if they try to protect legitimate commercial interests. However these are a greater source of competition law concerns when they place unreasonable restraints that affect market dynamics and consumer welfare. The article is a discussion of the relationship between restraint of trade provisions on one side and competition law on the other hand in terms of legal and economic issues, focusing on the difficulties these clauses present in a modern economic setting by conducting a comprehensive analysis of the most important judicial decisions, legislative frameworks, and economic theories pertinent to the assessment of restraint of trade clauses and reflects their impact on market competition, businesses, and consumers. What is lost every time is the deeper analytical discussion by way of comparative insight into balance sought either by courts or other competition authorities between protection of legitimate business interests and prevention of anti-competitive practice.
Keywords: Restraint of trade, Competition law, Non-compete clauses, Market dynamics, Consumer welfare
