Antitrust

AAA

DEFINITION of 'Antitrust'

The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade.

INVESTOPEDIA EXPLAINS 'Antitrust'

Examples of illegal practices are price-fixing conspiracies, corporate mergers likely to reduce the competitive vigor of particular markets, and predatory acts designed to achieve or maintain monopoly power.

Microsoft, ATT, and J.D. Rockefeller Oil are companies who have been convicted of antitrust practices.

RELATED TERMS
  1. Celler-Kefauver Act

    One of several U.S. laws designed to prevent certain mergers ...
  2. Interlocking Directorates

    A common business practice where a member of a company's board ...
  3. Bid Rigging

    A scheme in which businesses collude so that a competing business ...
  4. Market Power

    A company's ability to manipulate price by influencing an item's ...
  5. Predatory Dumping

    A type of anti-competitive event in which foreign companies or ...
  6. Price Fixing

    Establishing the price of a product or service, rather than allowing ...
RELATED FAQS
  1. How does the market share of a few companies affect the Herfindahl-Hirschman Index ...

    In economics and commercial law, the Herfindahl-Hirschman Index (HHI) is a widely used measure that indicates the amount ... Read Full Answer >>
  2. What are the benefits of investing in a money market fund?

    The U.S. Department of Justice, or DOJ, and the Federal Trade Commission, or FTC, use the Herfindahl-Hirschman Index, or ... Read Full Answer >>
  3. What are some of the more common reasons divestiture occurs?

    In finance, divestment or divestiture is defined as disposing of an asset through sale, exchange or closure. A divestiture ... Read Full Answer >>
  4. How are corporate poison pills regulated in the United States?

    The Delaware Supreme Court was the first legal authority to declare poison pills a valid initiative. This defense is either ... Read Full Answer >>
  5. Is backward integration ever illegal?

    Backward integration occurs when a company purchases a supplier in an attempt to increase supply chain efficiency and reduce ... Read Full Answer >>
  6. What companies have been targeted for anti-trust action in the 21st century?

    Several major and well known companies have been targeted for possible antitrust action in the last decade. Antitrust laws ... Read Full Answer >>
  7. Are there any legal monopolies in America or Europe?

    There are legal monopolies in almost every country, but their numbers are declining. For several decades the political climate ... Read Full Answer >>
  8. Why are oligopolies legal while monopolies are not?

    Unless it can be proven that a company has attempted to restrain trade, both oligopolies and monopolies are legal in the ... Read Full Answer >>
  9. How did Dow Chemical defeat an international monopoly in the 1900s?

    Herbert Henry Dow, a Canadian by birth, was a remarkable man. A chemist and an entrepreneur, Dow was one of the first people ... Read Full Answer >>
  10. Why was Microsoft subject to antitrust charges in 1998?

    On May 18, 1998, the Department of Justice filed antitrust charges against Microsoft (Nasdaq:MSFT ). The charges were brought ... Read Full Answer >>
Related Articles
  1. Investing Basics

    How Is Google Regulated In The US?

    Learn why Google has been the target of an anti-trust investigation by the Federal Trade Commission as well as a civil penalty for privacy issues.
  2. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  3. Personal Finance

    A History Of U.S. Monopolies

    These monoliths helped develop the economy and infrastructure at the expense of competition.
  4. Personal Finance

    Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.
  5. Personal Finance

    The 5 Most Feared Figures In Finance

    Gates, Soros, Icahn, Rockefeller and Morgan caused chills on Wall Street.
  6. Economics

    Calculating Income Elasticity of Demand

    Income elasticity of demand is a measure of how consumer demand changes when income changes.
  7. Economics

    Understanding Implicit Costs

    An implicit cost is any cost associated with not taking a certain action.
  8. Economics

    Understanding Diseconomies of Scale

    Diseconomies of scale is the point where a business no longer experiences decreasing costs per unit of output.
  9. Economics

    What Does Capital Intensive Mean?

    Capital intensive refers to a business or industry that requires a substantial amount of money or financial resources to engage in its specific business.
  10. Economics

    What is an Original Equipment Manufacturer (OEM)?

    An OEM is a company whose products are used as components in another company's product.

You May Also Like

Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!