Antitrust regulation aims to prevent monopolies and protect small businesses and consumers from unfair practices. It exists in most countries, including the US, Canada, UK, EU, and Australia, with specific agencies tasked with enforcing the laws and monitoring business practices. The first US antitrust legislation was the Sherman Antitrust Act in 1890, followed by the Clayton Act in 1914. The European Community also has explicit antitrust regulation and control to protect open border markets.
Antitrust regulation is legislation designed to dissolve or prevent the formation of monopolies. Its purpose is to protect small businesses from being destroyed by unfair tactics and to protect the public by ensuring better prices through competition. Rules designed to prevent or limit monopolies, also known as cartels, exist in most countries around the world.
In the United States, the first antitrust regulation was the result of a phenomenon that occurred in the late 19th century. Big companies have come together to form trusts by signing a trust agreement. Company representatives appointed trustees who were given the power to set prices and maximize profits by eliminating competition. The effect was the creation of large monopolies that would use cheap pricing and other unfair practices to derail the competition and then sell their products for as high a price as they could command. This has resulted in some large monopolies controlling a significant portion of the consumer market.
The Sherman Antitrust Act, passed in 1890, became America’s first antitrust legislation. It forbade all trust agreements and any action that would have resulted in a restriction of trade. In 1914, the Clayton Act amended the Sherman Act and outlawed price discrimination among customers, requiring customers to purchase additional unwanted goods to acquire desired products, and making it illegal for one company to acquire stock in another company at the same time. purpose of creating a monopoly. The Federal Trade Commission (FTC) was also set up at this time for the primary purpose of monitoring businesses and enforcing antitrust law.
In Canada, antitrust law is enforced through the Competition Bureau, the law enforcement agency tasked with investigating cartel or monopoly complaints and monitoring businesses to ensure fair business practices are being applied. Like the United States, United Kingdom, Australia, New Zealand and most other countries, Canadian law prohibits companies from entering into an agreement to restrict competition, such as fixing prices or offers, allocating of customers or markets, limiting supplies or using boycotts to eliminate competition. The Bureau also reviews proposed business mergers and makes approval recommendations to the Minister of Finance, who has the final approval authority for mergers.
The Office of Fair Trading is a non-ministerial government department established in 1973 to enforce antitrust law in the UK. This department reviews proposed mergers, conducts market studies, and enforces laws under the Competition Act. It also monitors consumer credit practices through licensing regulations and makes recommendations to regulators on antitrust compliance issues related to European Community regulations.
The treaty that established the European Community explicitly addressed antitrust regulation and control. In addition to overseeing mergers of companies within European Union (EU) member countries, it also regulates the amount of direct or indirect aid that member governments give to national companies. The purpose of this control is to protect the open border markets created by the EU.
The Australian Competition and Consumer Commission is the independent Commonwealth authority established to enforce antitrust law and fair trade practices in Australia. While its primary responsibility is to ensure that individuals and businesses operate fairly, it also regulates national infrastructure services. Australia is a member of the Organization for Economic Co-operation and Development (OECD), made up of representatives of 30 democracies around the world, which serves as an international forum for resolving many issues related to globalism, including trade practices and fair trade.
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