Question

Describe the purposes of the antitrust laws. What are the major anti-trust statutes / Acts and their stated objectives. What penalties, if any, are available to address violations of the major antitrust laws. Explain fully.

Answer 1

Anti-trust laws are made to protect the customer from predatory business practices. The main purpose of the law to ensure that their fair competition in the market and no one dominates the other to make exuberant profit.

There are three anti trust laws:-

1) The Sherman anti trust act 1890 :- It intended to prevent monopoly and conspiracy in restraint of trade. Violation of this led to a fine of upto $100 million for Corporation and $1 million for individual, as well as prison for 10 years.

2) The Federal Trade Commission Act :- This act intends to prevent unfair methods of competition and unfair practices.

3) The Clayton Antitrust Act :- This act addresses the specific practices that are not addressed by Sherman act. According to FTC, this act prevents prevents mergers and acquisition which can decrease the competition or create monopoly. It requires large firms to notify the government of the merger and acquisition , also allows individual to ask for triple penalty on being harmed by companies violating the Sherman and Clayton act.