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reply to below in 150 words, provide 150 words Antitrust LawsAntitrust laws were developed by the United States with the intention of guarding against potential monopolies that would prevent a fair c
reply to below in 150 words, provide 150 words
Antitrust Laws
Antitrust laws were developed by the United States with the intention of guarding against potential monopolies that would prevent a fair competition within an open-market economy. For starters, The Sherman Antitrust Act was developed in 1890 for the purpose of prohibiting any form of contract, trust, or conspiracy that restricted interstate foreign trade. This also prevented companies from conspiring with other forms of interstate foreign trade or commerce to create a monopoly. The penalties for violating this law included being in jail for up to three years or given up to a $10 million dollar fine. This law was later amended to become The Clayton Act in 1914 which was designed to prevent price discrimination, tying agreements, interlocking directorates, or other forms of mergers and acquisitions.
I personally believe these antitrust laws have been very effective against preventing monopolies and have helped companies maintain a fair competition not only for the average consumer but for the overall economy. These laws have shown their effectiveness in instances such as with Rockefeller’s Standard Oil when the company drastically reduced their prices in order to obtain business from their competitors. Another example was with the Microsoft case when the company began bundling Windows and Explorer in attempt to overtake competitors such as Apple Inc. Microsoft was fined $70 billion dollars for the violation. These instances show that the antitrust laws are necessary and keep the economy at equilibrium while allowing other businesses to flourish and the consumers to have multiple choices.
Gima, P. (2019). What are the Sherman Antitrust and Clayton Acts? Retrieved from https://business-law.freeadvice.com/business-law/trade_regulation/anti_trust_act.htm
UpCounsel Inc. (2019). Antitrust Laws: Examples: Everything You Need to Know. Retrieved from https://www.upcounsel.com/antitrust-laws-examples
