Antitrust laws also referred to as competition laws , are statutes developed by the U.S. government to protect consumers from predatory business practices. They ensure that fair competition exists in an open-market economy.
Are antitrust laws complex?
Id. at 1404–07. U.S. antitrust law, however, is not that complicated . It is, for good reasons, based upon a handful of rather simple rules whose application does not always require deep understanding of the implications of market power and often calls for a separate assessment of certain kinds of market power.
Are antitrust laws fixed and unchangeable?
Terms in this set (45) ________ are a series of laws enacted to specifically limit anticompetitive behavior and monopolistic practices in almost all industries, businesses, and professions operating in the United States. ... A) Antitrust laws are fixed and unchangeable .
Are antitrust laws enforced?
The Federal Trade Commission, the Antitrust Division of the U.S. Department of Justice, and private parties who are sufficiently affected may all bring civil actions in the courts to enforce the antitrust laws. However, criminal antitrust enforcement is done only by the Justice Department .
How are antitrust laws violated?
The most common antitrust violations fall into two categories: (i) Agreements to restrain competition , and (ii) efforts to acquire a monopoly. In the case of a merger, a combination that would likely substantially reduce competition in a market would also violate antitrust laws.
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.
What is an example of an antitrust violation?
An example of behavior that antitrust laws prohibit is lowering the price in a certain geographic area in order to push out the competition. ... 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.
What constitutes an antitrust violation?
Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization.
Who can enforce antitrust laws?
The Federal Government . Both the FTC and the U.S. Department of Justice (DOJ) Antitrust Division enforce the federal antitrust laws. In some respects their authorities overlap, but in practice the two agencies complement each other.
Who is exempt from antitrust laws?
A combination of court-made doctrine and federal statutes exempt certain types of activities that would normally violate federal antitrust law. As discussed below, one type of antitrust exemption relates to labor union and certain employer-negotiating conduct .
What are the 3 antitrust laws?
Antitrust refers to the regulation of the concentration of economic power, particularly with regard to trusts and monopolies. Antitrust laws exist as both federal statutes and state statutes. The three key federal statutes in Antitrust Law are the Sherman Act
What companies violated antitrust laws?
- AT&T. AT&T is the longest standing telecommunications company in the United States. ...
- Kodak. Kodak is one of the biggest names in the camera and film business. ...
- Standard Oil.
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 the main purpose of antitrust laws?
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.
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 .
Is price fixing illegal?
Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. A plain agreement among competitors to fix prices is almost always illegal , whether prices are fixed at a minimum, maximum, or within some range. ...
