What Does Antitrust Acts or Laws Mean?
Antitrust Acts or Laws refers to federal mandates designed to regulate control and trade practices against illegal activities such as corporate monopolies, unsanctioned mergers and acquisitions, price fixings, or any anti-competitive interest in the free market. Historically, antitrust acts or laws were established as private businesses and large companies began to thrive, introducing new competition in developing markets. The supply and demand ratio dictates public consumption of desired products and services with antitrust acts or laws providing fair business deals.
WorkplaceTesting Explains Antitrust Acts or Laws
Antitrust Acts or Laws consist of three principal federal mandates including the Sherman Antitrust Act of 1890 with the combined enactments of the Clayton Act and Federal Trade Commission Act of 1914. From the outset, the corporate landscape has consistently evolved from shifting trends in commerce and trade due to economic growth, expansion and innovation. As a result, legislative amendments are introduced to ensure that private entities and/or large corporations conform to updated rules and regulations.
Violation of antitrust acts or laws is based largely on judicial decision. Depending on the severity of the infraction, penalties can be levied against individuals and/or corporations with monetary damages and possible prison sentencing. Businesses that engage in illegal transactions can prove detrimental to a competitor's bottom line, but violation of antitrust acts or laws also has an adverse influence on consumer purchasing power. For instance, a company that dominates an exclusive market manages to isolate competitors by manipulating factors such as price settings and selective patronage (choosing customers/markets). A limited market of products and services offered at high rates can reduce consumer demands, in turn, constraining the economic purse.
In the workplace, predatory hiring involves recruiting new talent from competitors, but there is discrepancy over its legal use. On the surface, many people contend that it breaches antitrust laws because it gives an entity leverage in a competing market. However, other individuals uphold that hiring away is a legitimate tactic if the objective is to strengthen a workforce without deliberate intent to undermine a fair market between competitors. Antitrust acts or laws remain forceful in criminalizing deceptive and fraudulent engagements due to overlapping statutes in globalizing markets.