tejas.gaikwad.1044
Tejas Gaikwad
Antitrust law is an acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or which restrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combination....or conspiracy in restraint of trade or commerce" between states or foreign countries. The Clayton Antitrust Act of 1914, amended by the Robinson-Patman Act of 1936, prohibits discrimination among customers through pricing and disallows mergers, acquisitions or takeovers of one firm by another if the effect will "substantially lessen competition." Interstate commerce includes commerce within a state which affects the flow of that commerce, thus making it pretty broad. There are also some state laws against restraint of trade. The Antitrust Division of the U. S. Department of Justice enforces for the federal government, but private lawsuits to halt antitrust activities have become increasingly popular, particularly since attorneys fees are awarded to the winning party. This is a legal specialty which has kept some industries relatively honest and made some lawyers wealthy. The Antitrust laws are laws which are framed to promote free competition.
The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade.
Examples of illegal practices are price-fixing conspiracies, corporate mergers likely to reduce the competitive vigor of particular markets, and predatory acts designed to achieve or maintain monopoly power.
Microsoft, ATT, and J.D. Rockefeller Oil are companies who have been convicted of antitrust practices.
a) ANTI-COMPETITIVE AGREEMENTS:-
The set of agreements which are considered to have an adverse impact on competition:-
1. Directly or indirectly determine selling prices;
2. Put a limit on production/supply
3. Directly or indirectly participate in bid rigging or collusive bidding.
b) ABUSE OF DOMINANT POSITION:-
Dominant position is defined as the position of superiority enjoyed by an enterprise in the relevant market, which enables it to operate without relying on the competitive forces prevailing in the market. Abuse of dominant position will be declared if an enterprise indulges in the below mentioned events:-
1. Imposing conditions that are discriminatory in the purchase or sale of goods or service.
2. Indulging in practices resulting in the denial of market access.
3. Utilization of the firm’s dominant position in one relevant market to enter into another relevant market.
The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade.
Examples of illegal practices are price-fixing conspiracies, corporate mergers likely to reduce the competitive vigor of particular markets, and predatory acts designed to achieve or maintain monopoly power.
Microsoft, ATT, and J.D. Rockefeller Oil are companies who have been convicted of antitrust practices.
a) ANTI-COMPETITIVE AGREEMENTS:-
The set of agreements which are considered to have an adverse impact on competition:-
1. Directly or indirectly determine selling prices;
2. Put a limit on production/supply
3. Directly or indirectly participate in bid rigging or collusive bidding.
b) ABUSE OF DOMINANT POSITION:-
Dominant position is defined as the position of superiority enjoyed by an enterprise in the relevant market, which enables it to operate without relying on the competitive forces prevailing in the market. Abuse of dominant position will be declared if an enterprise indulges in the below mentioned events:-
1. Imposing conditions that are discriminatory in the purchase or sale of goods or service.
2. Indulging in practices resulting in the denial of market access.
3. Utilization of the firm’s dominant position in one relevant market to enter into another relevant market.