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Antitrust Law - Essay Example

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Antitrust Law Name Institution Antitrust Law Introduction Antitrust law consists of three key aspects namely, prohibition of abusive behavior through a company dominating a market or anti-competitive actions that can result to such domination. Anti-competitive practices controlled in this manner can encompass predatory pricing, tying, refusal to deal, and such…
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Antitrust Law Essay
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Download file to see previous pages The other element of antitrust law is that the application of antitrust law is different from various jurisdictions. Protection of consumer welfare and making sure that entrepreneurs have a chance of competing within the market economy are frequently deemed as vital goals of this law (Goodling, 2011). The company should avoid price fixing agreements with the competitors. This is because agreements with competitors that impact prices are unlawful. Competitors are not supposed to make agreements on trade credit terms for their clients or agreements eliminating interest-free trade credit. Discount, delivery charges, service charges, taxes agreements are also prohibited. The company should also not make agreements with its competitors of following an open pricing policy. Likewise, the company should avoid customers’ allocation and territories with its competitors. Market sharing might include allocation of fixed percentages of existing business to every competitor, division of sales territories geographically, or competitors’ agreement regarding bidding practices. The company should also refrain from selling using the same sales agents with its competitors. Refusing to carry out business with other traders is prohibited. Therefore, the company should not enter in group boycotts where competitors agree to decline to sell to some clients or purchase form certain suppliers (Pil, 2007). It is imperative for the company to keep away from exchanging its sensitive business information with competitors without legal guidance. Exchanging credit information on clients among competitors is a predominantly sensitive undertaking and the company is supposed to do this only under strict legal guidance to keep away from the appearance of agreements within restraint of trade. In addition, the company should be careful when dealing with trade associations. This is because the functions carried out by trade associations to the advantage of its members and their industry, are many and varied. Therefore, the company should be careful when taking part within trade associations’ activities or comparable associations where competitors meet together (Goodling, 2011). Basically, a prohibited agreement among competitors is commonly asserted and at times proved, simply through innocent discussions or information exposure to a competitor. For the company to avoid even the emergence of inappropriate concerted actions, it should keep away from discussing with competitors subjects such as, prices, pricing methods, price changes or conditions of sale; pricing activities of any industry associate; price forecast, either rise or decrease; a particular discounts, market share, profits and credit terms of the company; selection, refusal of the company’s suppliers or clients; production levels as well as bids information on contracts (Pil, 2007). Basically, a company that does not have monopoly power posses the right, acting autonomously to select its clients. However, the right is not absolute. As a result, the company should not exercise this right to bring about an outcome that is against the antitrust laws. Regarding the resale price maintenance, mostly it is against the antitrust law for the company and some of its clients to make agreements on the price that the customer will be charged on resale of the products of the company. The company ...Download file to see next pagesRead More
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