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ANTITRUST

Trusts and monopolies dominated the United States market in the 1800’s, leaving little room for competition within various industries. Trusts enabled a conglomerate of companies to team up in an effort to reduce competition and artificially raise prices. A monopoly consists of a single company that controls most, if not all, of a particular business or industry. The market dominance enables the company to, among other things, achieve the most cost effective production and control the market through pricing.

The unfair practices of both trusts and monopolies lead to the United States’ push for antitrust litigation. The Sherman Antitrust Act, passed in 1890, was created to eliminate market domination by a single entity, promote economic competitiveness, and to carry out the “invisible hand” of the free market economy.

Section 1 of the Sherman Antitrust Act prohibits price fixing and Section 2 prohibits the formation or attempted formation of a monopoly. In addition to the Sherman Antitrust Act, the the Clayton Act and the Federal Trade Commission Act further outlaw tying agreements, collusive bidding, predatory pricing and exclusive dealing agreements, all for the purpose of encouraging fair and competitive corporate economic practices.

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If you would like to pursue an antitrust suit against a company hindering the free market, please complete a free case evaluation form or contact us at 1-800-955-0815 to speak with an experienced antitrust attorney today.

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