Competition lies at the heart of any successful market economy and is crucial to the protection of consumers' interests and the efficient allocation of resources. It is a process whereby firms constantly try to gain an advantage over their rivals and win more business by offering more attractive terms to customers or by developing better products or more effective ways of meeting their requirements. Competition has several dimensions such as the quality of product, price, branding and marketing. Price is only one factor, albeit in many markets the most important. Fair and widespread competition encourages the development of new or improved products or processes and, in the long run, enhances economic growth and living standards.

The Fair Competition Act (FCA) was established in 1993 to ensure that the benefits of the competition process in Jamaica are unhindered by anti-competitive activity. The objectives of the Act are to:
- Encourage competition in the conduct of trade and business in Jamaica;
- Ensure that all legitimate business enterprises have an equal opportunity to participate in the Jamaican economy;
- Provide consumers with better products and services, a wide range of choices at the best possible prices.

To achieve these objectives, the FCA contains two broad categories of prohibitions - those dealing with anti-competitive behaviour and those dealing with consumer protection. With regard to anti-competitive behaviour, the Act prohibits agreements that substantially lessen competition and the abuse of a dominant position. Specific anti-competitive practices that are prohibited under the Act are resale price maintenance, tied selling, price fixing, collusion and cartels and bid rigging.