An Analysis of Practices of Disorganizing the Rival Company and the Market

Abstract:

To disorganize means to destroy, to spoil the order and the normal functioning, and to throw out of gear. In competition relations, disorganization is a disloyal behavior that aims to destabilize the functioning of the company of the competitor. Disorganization may concern the rival company or the market as a whole. In the former case, the functional destabilization of the competing company is made through various means such as espionage, corruption of the staff, embezzlement of the customers, and boycott. The disorganization of the market consists in affecting all the competitors that produce or distribute a product. According to the purpose aimed, the disorganization of the rival company may target, directly or indirectly, the production and commercial activity or the distribution networks through the development of parallel imports. The norms of the law of competition sanction the disloyalty that results from the indirect disorganization of the company. In Romanian law, art. 4 of Law no. 11/1991 concerning the fight against disloyal competition qualifies as disorganization a series of disloyal actions, such as: economic espionage, attracting staff, and aggressive forestalling of the customers of the rival company.