antitrust | Legal Information Institute
antitrust
Antitrust refers to the regulation of the concentration of economic power, particularly in regard to
monopolies
and other anticompetitive practices.
Antitrust laws
exist as both
federal
statutes
and
state
statutes. The three key federal statutes in Antitrust Law are;
Sherman Act Section 1
: Describes and prohibits specific conduct deemed anticompetitive.
Sherman Act Section 2
: Provides a means to stop already occurring anticompetitive practices.
The Clayton Act
: Regulates
mergers
and acquisitions in combination with the
guidelines
published by the
Department of Justice
and the
Federal Trade Commission
Many states have adopted antitrust
statutes
that parallel the Sherman Antitrust Act to prevent anticompetitive behavior within individual states. For example, California’s
Cartwright Act
is very similar to the Sherman Act.
Violating antitrust laws carry both
criminal
and
civil
penalties though in practice civil penalties are more common. When they occur, criminal prosecutions are limited to
intentional and clear violations
. Criminal penalties can include up to 10 years in prison and fines of up to $100,000,000 for corporations and $1,000,000 for individuals. In practice, combined with civil penalties, actual fines for violating antitrust laws can be far higher and occasionally
reach into the billions
For more in-depth information, see
Antitrust laws
and
price-fixing
[Last reviewed in November of 2024 by the
Wex Definitions Team
antitrust
Sherman Antitrust Act
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state law
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UNFAIR COMPETITION
unfair price competition
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