what is antitrust law

Antitrust law is a collection of laws that regulate the conduct and organization of businesses to promote competition and prevent unjustified monopolies. The antitrust laws are designed to encourage competition by limiting the market power of any particular firm, ensuring that mergers and acquisitions do not limit competition, and preventing businesses from teaming up or forming a monopoly to dictate pricing in a particular market. The three key federal statutes in antitrust law are the Sherman Act Section 1, the Sherman Act Section 2, and the Clayton Act. The Sherman Act Section 1 prohibits conspiracies that unreasonably restrain trade, while the 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. The antitrust laws proscribe unlawful mergers and business practices in general terms, leaving courts to decide which ones are illegal based on the facts of each case. The antitrust laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices, ensuring that there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up.