Business Law · Haute Lawyer Network
What Is Antitrust Law?
Last reviewed: June 2026
Antitrust law — also called competition law — is the body of law that promotes and protects fair competition in the marketplace by prohibiting anticompetitive business practices.
The primary federal antitrust statutes are the Sherman Act — prohibiting contracts, combinations, or conspiracies in restraint of trade and monopolization — the Clayton Act — addressing mergers, acquisitions, price discrimination, and exclusive dealings — and the FTC Act — prohibiting unfair methods of competition.
The Department of Justice Antitrust Division and the Federal Trade Commission share federal antitrust enforcement responsibility. Private parties who have been harmed by antitrust violations can also sue — and can recover treble damages (three times actual damages) plus attorney fees under the Sherman Act.
Key prohibited conduct includes price-fixing (competitors agreeing on prices), market allocation (competitors dividing markets), bid rigging (coordinating to manipulate competitive bidding), monopolization (illegally maintaining a monopoly through exclusionary conduct), and anticompetitive mergers.
Frequently Asked Questions
What is per se antitrust violation?
Conduct so inherently anticompetitive that it is automatically illegal without analysis of its actual competitive effects. Price-fixing, market allocation, and bid rigging among horizontal competitors are per se violations.
What is the rule of reason?
An analysis used for practices that are not per se illegal — courts weigh the anticompetitive harms against the procompetitive benefits to determine whether the practice violates antitrust law.
Does a company with a large market share automatically violate antitrust law?
No. Having a large market share or even a monopoly is not illegal. What is illegal is illegally acquiring or maintaining a monopoly through exclusionary conduct — conduct that harms competition, not merely conduct that reflects superior products or efficiency.
What is merger review?
Large mergers must be reported to the DOJ and FTC before closing. The agencies review whether the merger would substantially lessen competition. They may approve, block, or require divestitures as a condition of approval.
Can a business be criminally prosecuted for antitrust violations?
Yes. Price-fixing, bid rigging, and market allocation are criminal violations of the Sherman Act — carrying up to 10 years in prison for individuals and substantial fines for corporations.
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