Antitrust policies aim to maintain open and competitive markets, with laws varying between countries. In the US, the FTC and Antitrust Division manage policies, while Europe’s Competition Directorate is the main regulator. The first antitrust policy was the Sherman Act, with the Clayton Act following in 1914. Enforcement of violations is more challenging when offenders are in other countries.
An antitrust policy is designed to affect competition. The general objective behind this policy is to keep markets open and competitive. These regulations are used by different governments around the world, although the laws often vary.
In most countries, antitrust policies are written into law. In the United States, they are mainly managed by the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice. The FTC deals primarily with consumer protection issues, while the antitrust division is generally responsible for criminal violations of an antitrust policy.
Most countries do not have two regulatory bodies as seen in the US. In Europe, for example, the Competition Directorate is the only government body that generally manages antitrust policy. It is common around the world for disputes relating to such policies to be handled by a judicial body.
In the United States, ideas for such policies began after the Civil War, when large trusts began to emerge in important industries such as oil and cotton. Concerns about abuse led to the first antitrust policy, known as the Sherman Act. This piece of legislation declared that actions that restrict trade or create monopolies are anticompetitive and therefore illegal.
Antitrust law continued to be developed over the next century. The relevant legislation was passed during this period. In 1914, the Clayton Act became law. This made certain types of mergers illegal and gave certain regulatory powers to the executive branch. To balance that power, Congress also created the FTC.
When an antitrust policy is adopted or when an infringement is entered into, there are usually two things to consider: the public interest and the interest of the economy. In the United States, valuations are often based on a standard of reasonableness. There is often much discussion about what standards are used to determine when an action is unreasonable. Rules per se are also used that deem certain practices illegal at face value. How antitrust policy and potentially infringing actions should be analyzed is also a matter of great debate.
Antitrust policies are not just limited to competition within a nation. However, enforcement of violations is more difficult when an offender is in another country. In many cases, enforcement is only successful if a degree of cooperation is shown between the nation claiming to be infringed and the nation hosting the infringing party.
Protect your devices with Threat Protection by NordVPN
