Definition
Federal antitrust policy (antitrust law) has been set forth in this legislation:
The Clayton Antitrust Act of 1914 specifically outlaws discrimination in prices, exclusive and tying contracts, intercorporate stockholdings, and interlocking directorates “where the effect . . . may be to substantially lessen competition or tend to create a monopoly.”
The Federal Trade Commission Act of 1914 placed a blanket prohibition against “unfair methods of competition” and “unfair or deceptive acts or practices,” and created the Federal Trade Commission (FTC) to enforce it.
The Robinson-Patman Act of 1936 is an amendment to the Clayton Act that prohibits price discrimination when the effect “may be substantially to lessen competition or create a monopoly;” prohibits payments of broker’s commission when an independent broker is not employed; forbids sellers to provide allowances or services to buyers unless these are available to all buyers on “equally proportional terms,” and prohibits a buyer from inducing or receiving a prohibited discrimination in price.
The Sherman Antitrust Act of 1890 prohibits contracts, combinations, and conspiracies that restrain interstate or foreign trade, and prohibits monopolization, attempts to monopolize, and conspiracies to monopolize.
The Hart-Scott-Rodino Antitrust Improvement Act of 1976 requires that mergers involving corporations of a certain size be reported in advance to enforcement agencies. It also permits state attorneys general to bring parens patriae suits on behalf of those injured by violations of the Sherman Antitrust Act.
These laws are negative in character and outlaw restraints of trade, monopolizing, attempting to monopolize, unfair methods of competition, and where they may substantially lessen competition or tend to create a monopoly, price discrimination, exclusive dealing, or mergers.
An anti-competitive leasing arrangement is a lease that limits the type and amount of competition a particular retailer faces within a trading area or shopping center.
See Also
References
- American Marketing Association, AMA Dictionary.