What agreement involves two or more competitors that agree not to do business with another competitor to influence its practices?

A group boycott is an agreement between two or more competitors to collectively refuse to do business with a third competitor or vendor. This type of arrangement is typically aimed at influencing the practices of the targeted competitor by applying pressure through the withdrawal of support or services.

In the context of antitrust laws, group boycotts are considered anti-competitive and can lead to legal repercussions because they restrict free trade and commerce by limiting market access for the affected party. This practice is intended to curtail competition rather than promote it, as it can lead to the exclusion of the targeted competitor from the marketplace.

Utilizing a group boycott can be strategically detrimental to the competition, as it allows those engaging in the boycott to manipulate market dynamics, ensuring that the targeted competitor faces challenges in reaching consumers or distributing products. The intent behind such alignments often revolves around maintaining or enhancing the market power of the participating companies at the expense of the excluded competitor.