First, a definition of "trust" is in order: a trust is when a group of competing businesses decide that competition isn't all it's cracked up to be, frankly, and cooperate with one another instead to set prices and availablity of their products. This is called "collusion," and it drives up costs and drives down quality. In a "free market," people who see such actions could come in, undercut the trust on price, and win major market share. Unfortunately for free marketeers, the trust members, who are colluding to control prices, remember, slash their prices wherever their new competitor tries to sell his stuff. As a result, the trust loses money on each sale, but, being much larger than the small fry trying to break in, are easily able to absorb the losses by either eating the losses outright, or, more likely, hiking prices elsewhere to cover the difference. Antitrust legislation prevents such behavior, as long as the government is willing to enforce it. Basically, consumers benefit through: * Lower prices * Higher quality * Greater availablity * More innovation Two great online resources for you to check out... http://www.usdoj.gov/atr/public/div_stats/1638.htm The US Department of Justice's Antitrust FAQ is one of the clearest explanations I've ever seen. (Really!) http://www.antitrustinstitute.org/links/misc.cfm The American Antitrust Institute's webpage of links to all sorts of additional information.
Antitrust laws were established to promote vigorous competition amongst businesses and to also protect consumers from anti competitive business tactics and mergers.
Prices
Antitrust
The primary source of antitrust laws in the United States is the Sherman Antitrust Act, enacted in 1890. It prohibits anticompetitive practices and monopolies that could harm consumers and competition in the marketplace. Subsequent legislation, such as the Clayton Antitrust Act and the Federal Trade Commission Act, further expanded on these principles.
antitrust laws =)
Monopolies are regulated to protect consumers. An unregulated monopoly can charge prices higher than the efficient level of production which causes some consumers to be left out of the market. Governments can combat this by breaking up monopolies with antitrust laws and turning monopolies into public entities.
Self evidently, protect the consumer
Why Are Hospitals Exempt from Antitrust Laws
Antitrust or Antitrust Laws
how can consumers use consumer protection laws to prectect themselves in the marketplace
The Federal Trade Commission (FTC) and the Antitrust Division of the U.S. Department of Justice are the main government entities responsible for investigating and enforcing antitrust laws in the United States. These agencies work to promote fair competition and prevent monopolistic practices that harm consumers and the market.
There are three major federal antitrust laws: The Sherman Antitrust Act, the Clayton Act and the Federal Trade Commission Act.