How does antitrust law apply to government procurement?

Antitrust laws apply to government procurement specifically to promote competition and ensure that all businesses have an equal opportunity to compete for government contracts. This is important because when governments favor certain companies or when there is a lack of competition, prices can rise and quality can suffer. Under the Texas Antitrust Statute, it is illegal for public entities to form a monopoly or collude with businesses to gain a competitive advantage. Governments must also be especially vigilant about protecting small businesses from large, monopolistic companies. In Texas, state law mandates that at least twenty-five percent of the value of all government contracts must go to small businesses. This ensures that small businesses have the same chance to win government contracts as larger, more established companies. The Texas Antitrust Statute also prohibits public entities from entering into contracts that would limit competition. This means that governments can’t enter into exclusive contracts with one supplier, as this would limit competition for the contract. The statute also forbids public entities from awarding contracts to firms that have committed anti-competitive acts, such as price-fixing or bid-rigging. Overall, enforcing antitrust laws in government procurement is important to ensure a fair and competitive process. This allows businesses to compete on a level playing field and ensures that the best-value contracts are awarded regardless of the size of the company.

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How does antitrust law apply to government procurement?

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