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| Author: | Ashton, J.K. Pressey, A.D. |
| Title: | The regulatory challenge to branding: an interpretation of UK competition authority investigations 1950-2007 |
| Journal: | Journal of Marketing Management
2011 : AUG, VOL. 27:9-10, p. 1027-1058 |
| Index terms: | United Kingdom brands regulations pricing antitrust profit competition entry conditions |
| Language: | eng |
| Abstract: | Branding is a necessary key tool in business. This paper examines whether branding can form an anticompetitive act. While most markets and firms do not make anticompetitive actions, being identified as such can cause a wide range of negative outcomes. To study this low-frequency yet high-risk outcome, we assess when and how the UK competition authorities have perceived branding to be anticompetitive. This is undertaken by investigating all UK competition law regulatory decisions made over the period 1950-2007 by the competition authorities. It is observed that branding can make excessive pricing easier, requires vertical restraints, and may result in consumer confusion; all potentially anticompetitive acts. The competition regulatory decisions focused on branding issues differ demonstrably from those without branding concerns and involve larger, often manufacturing, firms, operating in markets with more concentration. The conclusion is that comprehension of competition law needs to be disseminated more broadly amongst marketing communities and greater reference to business and marketing theory are needed by competition law agencies to aid the comprehension of marketing techniques such as branding. |
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