What does antitrust law prohibit?

Antitrust law prohibits certain types of conduct that would intentionally limit competition in the marketplace. This could include agreements between businesses to fix prices, divide markets to limit competition, or control or attempt to control the supply and pricing of the goods and services they sell. Antitrust law in California is based on both federal and state laws and regulations. At a federal level, the Sherman Act prohibits anti-competitive and restrictive trade practices, prohibiting competitors from forming cartels to fix prices or limit output. The Clayton Act also forbids certain anti-competitive practices such as monopolization, price discrimination, and tying agreements between different sellers. At a state level, California antitrust law is governed by the Cartwright Act and the Unfair Competition Law (UCL). The Cartwright Act contains similar, though stronger, prohibitions on price-fixing and market allocation, as well as other anti-competitive practices. The UCL prohibits false advertising and other unfair methods of competition. Overall, antitrust law seeks to protect competition in the marketplace and legally prohibits any form of cartel or monopoly that would lead to higher prices, inferior quality goods or services, or less customer choice. Antitrust laws are important to preserve free, fair and competitive markets which ultimately benefit consumers.

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What does antitrust law prohibit?

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