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antitrust

Antitrust refers to the regulation of the concentration of economic power, particularly in regard to monopolies and other anticompetitive practices. Antitrust laws  exist as both federal  statutes  and state statutes. The three key federal statutes in Antitrust Law are;

• Sherman Act Section 1 : Describes and prohibits specific conduct deemed anticompetitive.
• Sherman Act Section 2 : Provides a means to stop already occurring anticompetitive practices.
• The Clayton Act : Regulates mergers and acquisitions in combination with the guidelines published by the Department of Justice and the Federal Trade Commission .

Many states have adopted antitrust statutes  that parallel the Sherman Antitrust Act to prevent anticompetitive behavior within individual states. For example, California’s Cartwright Act is very similar to the Sherman Act.  

Violating antitrust laws carry both criminal  and civil  penalties though in practice civil penalties are more common. When they occur, criminal prosecutions are limited to intentional and clear violations . Criminal penalties can include up to 10 years in prison and fines of up to $100,000,000 for corporations and $1,000,000 for individuals. In practice, combined with civil penalties, actual fines for violating antitrust laws can be far higher and occasionally reach into the billions . 

For more in-depth information, see Antitrust laws  and price-fixing

[Last reviewed in November of 2024 by the Wex Definitions Team
]

Keywords

• antitrust

• Sherman Antitrust Act

• federal law

• state law

• competition

• UNFAIR COMPETITION

• unfair price competition

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