Enforcing Competition: the United States Antitrust Laws The basic statutes A. Sherman Antitrust Act of 1890 B. Clayton Antitrust Act of 1914 C. Federal Trade Commission Act, 1914 Who enforces? A. Antitrust Division, DOJ B. Federal Trade Commission C. Private Plaintiffs

Enforcing Competition: the United States Antitrust Laws What’s illegal? Sherman Act Sec. 1 Restraint of trade: Price fixing Agreements to share a market “Unreasonable” vertical restraints Sec. 2 Monopolization: “Mere size [is not] an offense “Power plus intent” to exclude but something more than ordinary success.

Enforcing Competition: the United States Antitrust Laws What’s illegal? Clayton Act Sec. 7 Mergers and acquisitions… Sec. 3 Tying contracts and exclusive dealing… Sec. 2 Price discrimination… “….that substantially lessen competition or tend to create a monopoly.”