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A Background on Antitrust

Antitrust laws involve regulations that support commercial competition and restrict the market domination of any form of business or company. This usually involves making sure that businesses do not undergo mergers and acquisitions to extremely concentrate the power in the marketplace. They also ensure that they stop monopolies from forming. Also, it also involves the dissolution of companies that have turned to monopolies.

More Facts on Antitrust Laws

With Antitrust laws, multiple companies are prevented from forming a cartel or colluding to limit competition. The laws prevent this by practices like price-fixing. Because the process of deciding the right practices that will prevent competition is difficult and complex, antitrust laws are now a distinct specialization in law practice. The key features of the antitrust laws include:

• They are designed to promote competition and protect it within all the sectors in a particular economy.
• Antitrust regulations have three pivotal laws which are the Clayton Act, the Federal Trade Commission Act, and the Sherman Act.
• In the US, the Federal Trade Commission works alongside the Department of Justice in some cases, their job is to enforce the antitrust laws at the federal level.

What is the Purpose of Antitrust Laws?

Our Antitrust Assignment help involves a series of case studies that are used to investigate the purpose of antitrust laws. When it comes to what they really do, antitrust laws are used to regulate monopolies. In this case, they can be used to curb companies that have grown beyond regular limits to become big in the industry. If these companies are left unchecked, thru may stifle healthy competition in the marketplace and easily harm consumer behaviour. The origin of the law came from trusts created by American companies in the 1800s.

What is the Origin of the Term “Antitrust.”: The term “antitrust” has a backstory behind it. It started in the 1800s when US companies looked for a way to get considerably bigger. The firms made use of loopholes in the legal system to become very big. To become very large corporations, they went on to form independent entities that are called trusts. With their ability to establish these trusts, they are now able to grow bigger than they would have been under normal circumstances. The trusts that they had formed will then be able to hold a substantial amount of assets. This made them be too dominant and monopolistic in the marketplace. Later, there were laws created called antitrust that were us d to break up these companies. This law were used to prevent these monopolistic entities that are known as “antitrust.”

The Primary Purpose of Antitrust Laws: Antitrust laws are used to prevent companies to take certain actions for them to become monopolies. These laws are used to ban what is known as fraudulent trade practices which many companies use to gain an unfair advantage and work harder than the competition. Simply put in another way, the antitrust law can be used to stop companies from employing dirty corporate practices to bear the competition.

Finding the Origin of Antitrust Laws: By the later part of the 19th, there has been a massive public clamor for the establishment of antitrust laws. As the United States of America saw a spontaneous boom in many businesses, there were increasing fears that these commercial entities will end up being extremely powerful. People witnessed how modest companies grew rapidly to become massive corporations. This rapid expansion was likened to the sudden transformation of a pauper to a king. Just like a king wielding so much power over his subjects, a single company having all the power could result to an unfair business environment. They then made a conclusion that the best solution for this potential problem is the creation of antitrust laws.

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