Antitrust

Antitrust, also known as competition law, consists of statutes and policies designed to promote competition and prevent anti-competitive practices that can harm consumers and markets. Its aims include preserving competitive market structures, deterring monopolistic power, preventing collusion, and safeguarding innovation and efficient pricing.

In the United States, antitrust enforcement grew from concerns about trusts in the late 19th century. The Sherman Act of 1890 prohibits restraints of trade and monopolization, while the Clayton Act of 1914 targets specific practices that lessen competition. The Federal Trade Commission Act of 1914 established the FTC to enforce federal antitrust laws. Similar aims are pursued in many jurisdictions, notably through the European Union’s competition law regime, which bans anticompetitive agreements, abuse of dominance, and controls mergers.

Core concepts include market power, conspiracies to restrain trade, and agreements that restrict competition. Violations may be treated as per se offenses (for example certain price fixing or market allocation agreements) or evaluated under a rule-of-reason framework that weighs competitive effects. Monopolization and attempts to monopolize are also prohibited where power is used to suppress competition.

Mergers and acquisitions are routinely scrutinized for potential harm to competition. Regulators assess market shares, substitutability, entry barriers, and potential efficiencies. Remedies may include blocking a deal, imposing divestitures, or advising behavioral commitments to maintain competition.

Enforcement combines investigations, lawsuits, consent decrees, fines, and structural or behavioral remedies. The consumer welfare standard guides many jurisdictions, prioritizing prices, quality, innovation, and choice.

Global trends focus on digital platforms, data-driven markets, and cross-border enforcement, with increasing cooperation among authorities. While frameworks differ, most antitrust regimes pursue the same objective: preserving competitive markets as a foundation for economic welfare.