Question

Who are the three groups protected by antitrust laws?

Answer 1

The three laws protected by the Antitrust laws are :

• The Sherman antitrust act.
• The Clayton act.
• The federal trade commission act.

1) The Sherman antitrust act -The Sherman antitrust act intend to prevent unreasonable "Contract,Combination or Conspiracy of restrain of trade".This agreement includes among the competitors to fix the price and allocate the customers.Which is punishable as a criminal under this law.

The Sherman antitrust act also monopolization attempted the monopolization or the crime to monopolize any part of the interstate commerce.The unlawful monopolize exist when the single firm controls the market for the services and the product and it obtain the market power.because of suppressing competition with anticompetitive conduct.

Under the Sherman antitrust act the violation can serve consequences with the fine of $100 million for the corporation and $1 million for the individuals as well as prison terms of Upto 1 years or both.

2) The Clayton act - The Clayton act is carrying the no penalties that prohibits the merger and acquisition that more likely to lessen the competition or tend to create the monopoly.This act talks about the specific practices that Sherman antitrust act may not address.Under this act, Government challenge the companies/corporation for likely to increasing the price to consumer.This act prob hits the other business practices competition that may harm the competition under certain circumstances.

3) The federal trade commission act - The federal trade commission act prohibits the "unfair method of competition" or "unfair or deceptive acts or practices" in interstate competition, but also carries no penalties.According to the supreme court,the corporation or individuals who violate the Sherman antitrust act are also violate the federal trade commission act .The federal trade commission act (FTC) also created the federal trade commission to police violation of the act.