What does antitrust law prohibit?

Antitrust law, which exists at both the federal and state level, is designed to protect competition and consumers. In Delaware, antitrust law prohibits businesses from forming an agreement to create a monopoly or other anti-competitive behavior. Specifically, antitrust laws prohibit practices such as price-fixing, market division, bid-rigging, and tying agreements. Price-fixing includes any agreement between two or more companies to charge a specific price or to not charge below a certain price. Market division is an agreement between two or more companies to divide the market by customer or geographic region. Bid-rigging is an agreement between two or more companies to not bid or agree who will win the bid on certain projects. Lastly, tying agreements are any arrangements that require a company to purchase one product in order to be able to purchase a different product. The purpose of antitrust laws is to promote healthy competition, which, in turn, gives consumers more options and keeps prices low. Violating antitrust law can result in hefty fines and other legal repercussions. It is important for businesses to understand their local antitrust law and to stay compliant in order to avoid penalties.

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What does antitrust law prohibit?

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