- The Sherman Act. The Sherman Act was created to outlaw any contract or conspiracy to resist trade and any monopolization or conspiracy to monopolize. ...
- The Federal Trade Commission Act. ...
- The Clayton Act.
What is permitted under antitrust law?
Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies .
What are the four major antitrust laws?
The main statutes are the Sherman Act of 1890, the Clayton Act of 1914 and the Federal Trade Commission Act of 1914 .
What is an example of an antitrust violation?
Another example of an antitrust violation is collusion . For example, three companies manufacture and sell widgets. They charge $1.00, $1.05, and $1.10 for their widgets. If these three companies plan and agree to all charge $1.15 for widgets, they’re likely in violation of antitrust laws.
What are the three major antitrust laws?
- the Sherman Act;
- the Clayton Act; and.
- the Federal Trade Commission Act (FTCA).
Why are antitrust laws bad?
It shouldn’t be illegal to buy out another company if a fair price is being paid. By preventing mergers and acquisitions, antitrust laws impede the most efficient arrangement of capital . These laws protect inefficient managers at the cost of the greater economic good.
Why is it called antitrust law?
Antitrust law is the law of competition. Why then is it called “antitrust”? The answer is that these laws were originally established to check the abuses threatened or imposed by the immense “trusts” that emerged in the late 19th Century .
How old are antitrust laws?
Congress passed the first antitrust law, the Sherman Act, in 1890 as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton ...
Which of the following is a violation of antitrust laws?
Violations of the Sherman Antitrust Act include practices such as fixing prices, rigging contract bids, and allocating consumers between businesses that should be competing for them . Such violations constitute felonies. As such, they may be punished with heavy fines or prison time.
Who do antitrust laws apply to?
The FTC’s competition mission is to enforce the rules of the competitive marketplace — the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices.
What do antitrust laws prevent?
Antitrust laws protect competition. Free and open competition benefits consumers by ensuring lower prices and new and better products. In a freely competitive market, each competing business generally will try to attract consumers by cutting its prices and increasing the quality of its products or services.
What is the Sherman antitrust Act in simple terms?
Definition. The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace . The Sherman Act was amended by the Clayton Act in 1914.
What are the most common antitrust violations?
The most common violations of the Sherman Act and the violations most likely to be prosecuted criminally are price fixing, bid rigging, and market allocation among competitors (commonly described as “horizontal agreements”).
What are antitrust offenses?
Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization.
Is Google violating antitrust laws?
In 2013, the US Federal Trade Commission wrapped up a two-year investigation into Google after allegations of biased search results. The agency concluded that Google hadn’t violated antitrust laws .
Which of the following is not a per se antitrust violation?
Which of the following is not a per se violation of the antitrust laws? predatory pricing . Termination of a TV retailer’s sales contract with a TV manufacturer by that manufacturer for selling the manufacturer’s TVs at too-low prices is: resale price maintenance subject to a rule of reason review.
