Distortion of competition

Distortion of competition occurs when certain businesses gain unfair advantages or face obstacles that distort the natural balance of the market. This can happen through unfair practices like government favoritism, subsidies, or exclusive agreements, which give some companies an edge over others. Such distortions prevent consumers from benefiting from true competition, which normally leads to better prices, quality, and innovation. Essentially, it skewers the level playing field, harming the efficiency and fairness of the market.