LAW 6402 - Antitrust Outline Introduction : Relevant Acts : Overview Sherman Act : Antitrust law passed by congress in 1890 that prohibits (1) anticompetitive agreements and (2) unilateral conduct that monoplozes or attempts to monopolize the relevant market. o Sherman Act § 1 (15 U.S.C. § 1) – Trust in Restraint of Trade Illegal : Every contract, combination or conspiracy, in the restraint of trade is declared illegal. No horizontal agreements that unreasonably restrain trade. Requirements : ( 1 ) A concerted action; and ( 2 ) unreasonable restraint of trade (anticompetitive restraint). o Sharman Act § 2 (15 U.S.C. § 2) – Monopolizing Trade is a Felony : It is a felony to wrongfully monopolize or attempt to monopolize any part of trade or commerce by a dominant firm. Clayton Act (15 U.S.C. § 15) : Antitrust law passed by congress in 1914 that provided further clarification and substance to the Sherman Act by focusing on topics of price discrimination, price fixing, and unfair business practices. o Clayton Act § 4 – Amount of Recovery : Private right of action for private citizens for treble damages and fees for antitrust violations. Any person whose business or property is injured by forbidden antitrust actions may bring a cause of action. o Clayton Act § 4A – Suits by the United States : Private right of action for the United States for treble damages and fees. If the US is injured in its business or property because of forbidden antitrust acts, it may sue in district court. o Clayton Act § 4C – Actions by State Attorney General : Private right of action for State Attorney Generals for treble damages and fees. May bring a civil action in the state on behalf of any natural person residing in that state in federal district court for violating anti-trust laws. o Clayton Act § 7 – Acquiring Corporate Stock by Another : Mergers and Acquisitions that may substantially lessen competition or tend to create monopolies are not allowed. Celler-Kefauver Act : § 7 includes all vertical & horizontal mergers of both stocks & assets. Federal Trade Commission Act § 5(a) – Unfair Methods of Competition : Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful. o Note : Exclusion of savings & loans; federal credit unitons; common carriers; packers & stockyards o Note : There is a constriction on enforcement against foreign commerce (except import businesses). Hart-Scott-Rodino Antitrust Improvements Act : Added reporting requirements and a preclearance process to the Clayton Act. Political Views : Antitrust Law Proponents Legislative Aims : ( 1 ) Improved economic performance (productivity); ( 2 ) Stop the transfer of wealth from consumers to producers; ( 3 ) Protect the well-being of small businesses; and ( 4 ) Preserve the integrity of political process.
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- Fall '19
- Law, Sherman Antitrust Act