ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Antitrust laws are the laws that regulate the market and its activities. Such laws aim at reducing unfair trade practices and prevent monopolies.

Detailed explanation-2: -The Sherman Antitrust Act This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.

Detailed explanation-3: -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.

Detailed explanation-4: -The Bottom Line. Antitrust laws regulate the concentration of economic power to prevent companies from price colluding or creating monopolies. Proponents of antitrust laws argue that they keep consumer prices lower and foster innovation through increased competition.

Detailed explanation-5: -Antitrust and competition laws seek to prevent the benefits of a competitive market from being undermined by anticompetitive practices. The Company’s Antitrust Policy places the responsibility of compliance with all applicable antitrust and competition laws on every director, officer, and employee.