Comprehensive knowledge of business law is the key for entrepreneurs to explore opportunities to grow their enterprises. Insight into Illinois and federal statutes – specifically antitrust laws – can not only be a path to significant success. It can help them survive during difficult times.
Antitrust laws exist to halt agreements between businesses that end up stifling competition. Within those regulations are specific federal and state acts that include:
The Federal Trade Commission Act
The primary function is to prohibit interstate commerce that cultivates unfair markets. The act goes on to create the Federal Trade Commission (FTC) to police any violations.
The Clayton Act
The civil statute works to keep competition thriving by prohibiting company mergers or acquisitions that may increase prices to consumers. Companies looking to merge must first notify the FTC and the antitrust division.
The Sherman Antitrust Act
The act serves to curb conspiracies, combinations, and contracts that benefit companies over consumers. Illegal agreements between competitors include fixing prices, rigging bids, and other actions that restrain interstate or foreign trade. It also forbids monopolies over any interstate commerce.
Price wars between competitors do not fall under this specific act as vigorous competition is what the Sherman Antitrust Act cultivates.
The Illinois Antitrust Act
The state’s antitrust law supplements the three federal acts while also exempting certain organizations from its provisions. Specific regulations encompass labor, agriculture, and other organizations depending on the business circumstance. The monopoly laws include a broader determination, such as “any substantial part of trade or commerce.”