Different legal services offered by lawyers can be confusing at times. Here, we explain what antitrust law is and why it is important in today’s business and legal landscapes.
Antitrust laws are laws developed by government entities. These laws protect consumers from business practices that aren’t fair or lawful; they also ensure fair competition for workers and consumers.
One great example of an antitrust law is that of Rockefeller’s Standard Oil. The company dropped prices more than 50%, and they also bought several of its competitors. While their control of the market increased, the company lowered production costs and prices even more. This allows the company to continue to make bigger profits! This is a good example because it’s well-known that some companies will jack up their prices while keeping their own production costs low, and an oil company is a prime example of this. Antitrust laws are made to protect consumers from situations like this.
Merging companies is a big one for antitrust law, too. Big companies that offer the same products and team up will essentially wipe out the rest of the market, making it unfair to other businesses offering the same products and/or services. Antitrust law combats such situations so everyone has the ability to make a living with the business they run.