What is antitrust law and what are the principles governing it?
Antitrust law is a form of law that seeks to protect free enterprise and competition in the marketplace. It is designed to ensure that companies are not engaging in practices that are unfair or anti-competitive. In simple terms, antitrust law revokes certain business practices that would otherwise be profitable, but could harm consumers and other businesses. For instance, companies are not allowed to form cartels, collude on prices, or unfairly dominate a specific market. In the United States, antitrust law is based on two statutes, the Sherman Act and the Clayton Act. The Sherman Act of 1890 makes it illegal for businesses to engage in any form of combination that would substantially reduce competition. The Clayton Act of 1914 prohibits certain types of activities, such as exclusive dealing and price discrimination. The main principles of antitrust law are that companies should not interfere with free and fair competition in the marketplace. Businesses should not engage in unfair or deceptive practices that would ultimately harm consumers or other businesses. At the same time, businesses should be able to compete fairly without fixing prices or preventing market access. Ultimately, the goal of antitrust law is to create an environment where competition is encouraged and open to everyone.
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