Antitrust Legislation

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Antitrust (antitrust) law is a regulation that applies to companies or companies that control or limit their market power.

Antitrust Legislation Goals:

The third point is important, since the greater allocation efficiency usually means greater productive efficiency. Limited allocation efficiency can cause, among other things, price collusion, production limits, or other agreements aimed at counteracting competition. Mergers and acquisitions can also lead to a monopoly. Using monopoly conditions through abuse of a dominant position is another reason for the allocation ineffectiveness. By creating barriers to entry, or setting low prices, leaders are strengthening their positions on the market. They also increase their own production capacity.

Antitrust law generally examines each case separately, because in the analysis of antitrust practices it is very difficult to adopt uniform criteria. It was first stated in the so-called Sherman Act of 1890 in the United States. Almost all world laws of this type were modeled on this American document. Over time, however, agreements were agreed to support technical progress or to improve production. Bibliography

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