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 ]

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