If you are new to the legal space and wondering what antitrust laws are and why they are in place, this article will give you the answer. Antitrust laws do a lot to protect large businesses and corporations while also protecting the consumer.
Antitrust law is set up so that way businesses and corporations cannot act in ways that would negatively affect the consumers. In terms of general economic prosperity, there needs to be a healthy amount of competition to ensure an influx of goods and services at an affordable price.
To most people, this is just general supply and demand.
How Antitrust Law Began
Antitrust laws were started, so the federal government had a way to break up “trusts” that were formed by one company. Because these larger companies were forming trusts, it led to less competition, and companies could raise prices because they were the only ones who could provide a good or service.
Antitrust law plays a huge role in almost everyone’s life, but we never feel the impact. If antitrust laws were ever to go away the world would be a place with far less competition and more scarcity, leading to higher prices and poor life quality.