Antitrust laws exist on both the state and federal levels. Their primary purpose is to protect consumers from unfair business practices. Specifically, antitrust laws ensure competition among businesses; that is, they prohibit business practices that deprive consumers of the benefits that come from businesses competing with one another. Without such competition, consumers would likely pay more money for the products and services they buy. Additionally, there would be less motivation for businesses to improve processes and be innovative. Consumers would likely see far fewer new and improved products in the marketplace.

Although antitrust laws exist primarily to protect consumers, one of their primary goals is to encourage healthy competition among businesses. To that end, antitrust laws are fairly specific in the activities they prohibit. Antitrust laws restrict:

• Agreements or practices that limit free trading (especially in the form of cartels).
• Behavior that creates or exacerbates the presence of a “dominant firm” in the market (e.g., predatory pricing, price gouging).
• Mergers, acquisitions, or joint ventures that are considered a threat to the competitive process.

At the federal level, these restrictions are contained in several sets of statutes: the Sherman Act (1890), the Clayton Act (1914, amended in 1950), and the Federal Trade Commission Act (1914). Other federal and state laws are also relevant in antitrust cases, including those surrounding obstruction of justice, perjury, and mail or wire fraud.

Violation of antitrust laws can result in both criminal and civil penalties. Parties found guilty in criminal proceedings may be subjected to jail time, penalties and fines, as well as revocation of their business licenses or other operating permits. In civil proceedings, companies found in violation of the law may be forced to pay restitution to the businesses or individuals harmed by the illegal activities. These damages may include monies for lost revenue as well as overpayments for products and services.

Because the activities targeted by antitrust laws are by nature conducted in secret, enforcement can be difficult. Federal and state agencies depend on business owners, employees and consumers for information about unfair business practices. To motivate and reward consumers, a specific provision within the Clayton Act allows private parties to seek damages valued at three times the actual damages incurred (in addition to court and attorney’s fees).

Individuals who are aware, or even suspicious, of businesses that violate antitrust laws should seek the advice of an antitrust attorney. The legal issues can be very complex and there are stringent time limits regarding when lawsuits can be filed. An antitrust lawyer can protect the rights of his or her clients and work with them to ensure that businesses that violate the law are held responsible for their actions.

For your free consultation with a Lawyer about your possible case or about abusive or restrictive market practices, fill out our contact form or call us at 888-933-1514 (toll free).