What is one principle of the Competition Act?

One principle of the Competition Act is to prohibit collusion among competitors. This principle is critical because collusion can lead to anti-competitive behavior such as price-fixing, market division, and other practices that harm consumers and distort fair competition. When companies secretly agree to fix prices or limit production, it undermines the competitive market, leading to higher prices and less choice for consumers. By prohibiting collusion, the Competition Act promotes fair competition and encourages companies to operate independently, fostering an environment where innovation and consumer welfare can thrive. This principle is foundational to maintaining the integrity of the marketplace.

The other choices do not capture the essence of the Competition Act's focus on promoting competition and protecting consumers in the market context.