The Antitrust Laws in Brief

• Pages: 11-20

An Antitrust Guide for Trade Associations

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III. The Antitrust Laws in Brief

A. Overview

The purpose of the U.S. antitrust laws is

integral to the American system of free enter-

prise. The antitrust laws are designed to pre-

serve competition by promoting competitive

practices and prohibiting acts that injure com-

petition. The goal of the antitrust laws is to en-

sure that competition is not unreasonably

restricted by agreements among competitors,

customers, or suppliers.

The principal federal laws governing com-

petitive conduct are the Sherman Act, the

Clayton Act, the Robinson-Patman Act, and the

Federal Trade Commission Act. These laws set

forth the basic policy of the federal antitrust

and trade regulation laws and apply to restraints

of trade, monopolization, attempts to monopo-

lize, price discrimination, and unfair methods

of competition. They also prohibit mergers, ac-

quisitions, and joint ventures that adversely

affect competition. For trade association activi-

ties, the Sherman Act and the Federal Trade

Commission Act are the most pertinent laws.

B. The Sherman Act

Enacted by Congress in 1890, the Sherman

Act is the cornerstone of the antitrust laws. Its

provisions are simple and concise, but compre-

hensive. Many of the subsequently enacted fed-