Antitrust & Trade Regulation
Imagine for a moment that there was only one form of food that humans needed to eat to eat in order to survive. The food was plentiful, but its manufacture and distribution was controlled by one company. This company, recognizes a lucrative opportunity, and sets the price for the food low enough so that most people can afford enough of it to eat, but so high that they can’t afford much else. People the world over would live in a state of perpetual poverty, simply laboring in order to eat. Antitrust laws and trade regulation prevents the occurrence of such situations that involve consumer goods and services.Federal Antitrust Laws
A monopoly occurs when an individual or organization controls all of one thing. If there were only one company in the world that not only sold a product, but was the only company that could sell it, then that company holds a monopoly over the product.
There are two federal laws upon most antitrust law is based: the Clayton Act and the Sherman Act; most individual states have their own laws that are patterned after these federal regulations. The Sherman Act is a federal law that renders illegal any unreasonable interference with ordinary competitive pricing or distribution system. The Clayton Act is an amendment to the Sherman Act renders illegal price discrimination, exclusive dealing contracts, and mergers where the effect may lessen competition or that will create a monopoly.
Violators of Antitrust Law
When a company is determined to have been in violation of antitrust laws, there are penalties that might be criminal, civil, or both. Huge fines, or even imprisonment, awaits those convicted of criminal penalties or investigated by the Department of Justice. The Federal Trade Commission, or FTC, is the arm of the federal government that focuses on the promotion of free competition in interstate commerce.
When to Seek an Antitrust Lawyer
When it comes to investigating a competitor that is interfering with your ability to set a fair price, or if you are considering a business tactic that may skirt the issues of antitrust laws, make your first step the consultation. of an attorney who specializes in antitrust law.
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