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United States antitrust laws regulate the organization and conduct of business corporations on state and national levels to provide fair competition for the benefit of consumers. Why are they necessary?
The Federal Trade Commission (FTC) has the answer:
“Free and open markets are the foundation of a vibrant economy. Aggressive competition among sellers in an open marketplace gives consumers – both individuals and businesses – the benefits of lower prices, higher quality products and services, more choices, and greater innovation. The FTC’s competition mission is to enforce the rules of the competitive marketplace – the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive mergers in business practices. The FTC’s Bureau of Competition, working in tandem with the Bureau of Economics, enforces the antitrust laws for the benefit of consumers.”
The Sherman Antitrust Act, passed by Congress in 1890 under President Benjamin Harrison, was the first Federal act that outlawed interstate monopolistic business practices. It is considered a landmark decision because previous laws were limited to intrastate businesses.
In 1890 Utah, Oklahoma, New Mexico, Arizona, Alaska, and Hawaii were not even states. The Transcontinental Railroad that connected the eastern United States with the Pacific coast was in its infancy. That was then, this is now. Today there are 50 states, world travel is commonplace, and antitrust matters matter to every person on Earth.
Why? What do antitrust matters have to do with me? The answer is EVERYTHING.