Legal Definitions - antitrust law

Antitrust law is a set of rules that protect trade and commerce from unfair practices like monopolies, price-fixing, and discrimination. The main goal of antitrust law is to promote competition in the market.

There are two main federal antitrust laws: the Sherman Act and the Clayton Act. The Sherman Act prohibits any agreements or actions that restrain trade or create a monopoly. The Clayton Act prohibits mergers and acquisitions that may lessen competition in the market.

For example, if a company dominates the market and sets high prices, antitrust law may be used to break up the monopoly and promote competition. Another example is if two large companies merge, antitrust law may be used to ensure that the merger does not harm competition in the market.

Overall, antitrust law is important for ensuring fair competition in the market and protecting consumers from unfair practices.