d.l.hall,attorney,pllc
14555 North Scottsdale Road
Suite 160
Scottsdale, Arizona 85254
fort bowie
Call (480.596.4045) or email Dennis
|
|
d.l.hall,attorney,pllc 14555 North Scottsdale Road fort bowie Call (480.596.4045) or email Dennis |
|
What is Antitrust Law?
Antitrust laws protect competition. Section 1 of the Sherman Act outlaws "every contract, combination . . . , or conspiracy, in restraint of trade." The Supreme Court has decided that the Sherman Act prohibits only those contracts or agreements that restrain trade unreasonably. What kinds of agreements are unreasonable is up to the courts. Section 2 of the Sherman Act makes it unlawful for a company to "monopolize, or attempt to monopolize," trade or commerce. It is not necessarily illegal for a company to have a monopoly or to try to achieve a monopoly position. The law is violated only if the company tries to maintain or acquire a monopoly position through unreasonable methods. For the courts, a key factor in determining what is unreasonable is whether the practice has a legitimate business justification.
Per Se Violations
"Per se" illegality, which conclusively presumes such practices to be unreasonable, is a doctrine the courts have developed. The Supreme Court held that certain agreements were so plainly anticompetitive and lacking in any redeeming virtue that they should be held ``per se'' illegal without further inquiry into reasonableness.When a per se offense (such as price fixing among competitors) is charged, all the government or the private plaintiff must establish is that the defendant has, in fact, engaged in the proscribed practice. Price fixing and bid rigging are the prime per se offenses. In addition, horizontal customer allocation and territorial allocation agreements among competitors, as well as group boycotts,are per se violations.
Rule of Reason
In Standard Oil Co. v. United States, the Supreme Court interpreted Section 1 of the Sherman Act to prohibit agreements that are ``unreasonably restrictive of competitive conditions.'' Rule of reason analysis applies to all agreements not included in the per se illegal category. The Court has applied rule of reason analysis to cooperative arrangements that have the potential of producing integrative efficiencies, a new market, or other procompetitive benefits. In the Court's view, unless a ``practice facially appears to be one that would always or almost always tend to restrict competition and decrease output,'' the agreement should be analyzed under the rule of reason.
Enforcement
There are three main ways in which the federal antitrust laws are enforced: criminal and civil enforcement actions brought by the Antitrust Division of the Department of Justice, civil enforcement actions brought by the Federal Trade Commission, and lawsuits brought by private parties asserting damage claims.
Damages
Lost profits are the main source of antitrust damages; trebling is available.
Call (480.596.4045) or email Dennis.
Arizona Limited Liability Companies
This Web site has been prepared by d.l.hall,attorney,pllc for informational purposes only and is not legal advice.Readers should not act upon this information without seeking professional legal advice.
Legal DisclaimerCopyright 2007 d.l.hall,attorney,pllc