What is the concept of “essential facilities” in antitrust law?

Essential facilities are a concept in antitrust law that is utilized to determine if a certain industry is in violation of antitrust rules. The concept of essential facilities states that if a certain business or entity has monopoly power, it must make that facility available to competitors at a fair market rate. In Nebraska, the Federal Trade Commission considers essential facilities to be any infrastructure or technology which cannot be practically duplicated or which cannot be avoided by competitors. This includes things such as transportation systems, communication networks, utilities, and other infrastructure. Essential facilities are important because they provide competitive balance within an industry. Without essential facilities, a monopolistic entity could monopolize an entire industry and shut out all competitors. This would make it difficult for new businesses to enter the market and compete, as well as keep prices artificially high for consumers. The concept of essential facilities is also important for antitrust regulators to protect competition and ensure fair market practices. It allows regulators to ensure that there is not an unfair advantage given to certain companies or entities over others in the same industry. It ensures that there are fair market prices set and that consumers are not taken advantage of.

Related FAQs

What is an antitrust settlement?
What is the role of antitrust law in protecting small businesses?
What kind of evidence is needed to prove an antitrust violation?
What are the most important antitrust court cases?
Is antitrust law the same in all countries?
What is the role of antitrust law in regulating mergers?
What antitrust laws are specific to the US?
What is the Robinson-Patman Act?
How can business owners avoid antitrust violations?
How can businesses comply with antitrust law?

What is the concept of “essential facilities” in antitrust law?

Related FAQs

Related Blog Posts