How does antitrust law protect consumers?

Antitrust law protects consumers by prohibiting certain types of business practices that harm competition. This type of law prevents companies from forming illegal monopolies, which would allow them to charge excessive prices, limit quality, and limit choices for consumers. Additionally, antitrust law also prohibits companies from engaging in unfair competition such as predatory pricing, price-fixing, and bid rigging. These activities can drive up the costs of goods and services, reducing the purchasing power of consumers. Additionally, antitrust law also makes sure that businesses play by the same rules. Companies that are found engaging in anticompetitive activities such as price-fixing and bid rigging can face significant fines and, in some cases, even imprisonment. This serves as a strong deterrent and helps protect consumers by promoting fair competition among businesses. Finally, antitrust laws promote innovation by preventing larger, more established companies from using their size and power to stifle competition. This creates an environment where smaller companies with new ideas can compete on a level playing field, allowing them to create better products and services that benefit consumers and drive economic growth.

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How does antitrust law protect consumers?

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