USA HISTORY

Detailed explanation-1: -Yet for over 100 years, the antitrust laws have had the same basic objective: to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up.

Detailed explanation-2: -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-3: -The Sherman Act, enacted by Congress in 1890, remains the basis for most of our nation’s antitrust laws. It prohibits all agreements and conspiracies in restraint of trade and commerce. These prohibited restraints include price fixing, market allocation, boycotts, bid rigging and tying agreements.

Detailed explanation-4: -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.

Detailed explanation-5: -The purpose of antitrust law is to reduce competition. Any activity that substantially affects interstate commerce falls outside the scope of antitrust laws. Market power is the ability of a firm to enter a given market. A price-fixing agreement that is reasonable does not violate antitrust law.