Stries that drive away smaller competitors. The video gives a clear and concise description of why antitrust law is so important as well as a good overview of the topic.
Antitrust laws are designed to encourage and encourage free competition in the market place, where market forces of supply and demand determine prices and the quality of goods as well as services. This may involve regulations and even the dissolution of certain corporations that have grown huge – or abused their powers – to deter them from exerting an unfair advantage and leading to Monopolies.
The 1984 demise of Bell Telephone Company, the United States’ largest and most well-known instance of antitrust enforcement is one of the most well-known instances. It was a monopoly, and the federal government used antitrust laws to stop their rise to an unfair position of power. Obviously, this isn’t the only case; there are numerous instances of cartels and large corporations breaking up as component of the antitrust enforcement.
All in all, antitrust law is crucial to make sure that markets are healthy and healthy. Antitrust law plays a key function in maintaining a healthy market, and also in preventing large corporations from altering prices to make money of consumers.