How can a business defend itself against antitrust charges?

A business may be able to defend against antitrust charges by demonstrating that the challenged conduct is (1) beneficial to consumers, (2) necessary to compete in a relevant market, or (3) pro-competitive. First, a business can argue that its conduct is beneficial to consumers, meaning it increases output, lowers prices, or otherwise benefits consumers. By showing that consumers benefit from the conduct, a business may be able to demonstrate that the conduct is legal. Second, a business may argue that its conduct is necessary to compete in a relevant market. This involves demonstrating that the conduct is necessary to remain competitive and that there are no reasonable alternatives for engaging in the relevant conduct. Third, a business may argue that its conduct is pro-competitive. This argument typically focuses on demonstrating that the conduct encourages competition in the relevant market and, in turn, benefits consumers. For example, a business may argue that its conduct increases the quality of products and/or services, among other benefits. Finally, a business may be able to defend against antitrust charges by showing that the challenged conduct is protected by an antitrust immunity. For example, in South Dakota, anyone engaging in conduct in compliance with a state law is protected from antitrust liability. Similarly, certain organizations, such as agricultural cooperatives, may be exempt from certain antitrust laws. These are just a few of the defences businesses can use to protect themselves against antitrust charges. Ultimately, it is important for businesses to understand antitrust laws and to become familiar with the defences available to them.

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