This formal ability can be embodied within a trade group or other entity which would enable future conspiratorial behavior. Similarly, the joint liability provisions and the industry cap on civil liability damages provide additional opportunities to share information among the tobacco companies, which could lead to anti-competitive behavior. The document disclosure requirements will also preserve the market failure. The disclosure requirements are incomplete, which will result in a continuation of the information inequities within the market, with t he tobacco companies keeping relevant information away from consumers. This is anti-competitive in that it provides an opportunity for these tobacco companies to conspire in the production and marketing of reduced risk products.
Competition is a mechanism by which innovation is forced.
By competing with other market participants a company will be forced to develop better and more affordable products. Such innovation is a vital component to economic growth. This deal removes all incentive to compete among the market participants. The market failures are memorialized by preserving the oligopoly pricing structure and failing to remove the information inequities within the market. In addition, it provides opportunities for further conspiratorial behavior by the tobacco companies.