ED Letter Hed goes here two lines
Re: the June 13 column "How to turn business competitors into assets."
This βbusiness tipβ treads dangerously on advice that could lead a small businessman to commit criminal actions which might result in a heavy fine and even a possible jail sentence. Every business major is taught in Business Law 101 that there are federal anti-trust laws that restrict businesses that compete with one another in a marketplace from agreeing or conspiring to βdivvyβ the market between them in any way that effectively reduces competition.
In the hypothetical example given in the article, Pete the plumber proposed to one of his competitors who focused on commercial work that they send their residential work to him. In return, Pete would refer commercial inquiries to the competitor. If the competitor actually performed residential work in the course of its regular business and Peteβs proposal would effectively persuade them to discontinue their involvement in this segment, it could well be construed that both parties committed a violation of anti-trust laws.
Bud Watson
Oro Valley
