The use of methods of competing which in some way break rules which other competitors have to abide by. This can apply in a range of situations:
• some firms may resort to ‘dirty tricks’, e.g. bus companies have been known to time-table their buses just before the arrival times of other companies’ buses, which can drive a smaller competitor out of business
• firms may be in receipt of government subsidies which their competitors cannot get
• firms may be able to cut costs by having lower health and safety standards than their competitors.
Some businesses compete with firms in countries with lower wage rates and mistakenly see this as unfair competition. In reality it simply reflects the relative comparative advantages of the competitors.