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<\/figure>\n\n\n\nThe intervention is based on the assumption that the competition in the economy is good, and it helps to lower the prices. It also helps to generate higher standards in the economy. The competition between the companies in a certain market also helps increase the expertise and the companies’ ability, as they are required to be more creative and have more efficient products to remain competitive.<\/p>\n\n\n\n
Unlawful Market Dominance<\/h2>\n\n\n\n
Market dominance is the term used to describe the over-concentration of a given market in a single company. This means that the total market consumption that a single company control is too large compared to other companies operating in that field.<\/p>\n\n\n\n
The antitrust law describes one definition of market dominance as a situation where \u201cthe market share of any one firm in a given market exceeds the appropriate or reasonable percentage for that market.\u201d<\/p>\n\n\n\n
Antitrust laws come with a variety of different rules and regulations. These regulations are used to manage the behavior of companies to prevent unlawful dominance in terms of markets regarding goods and services.<\/p>\n\n\n\n
The Purpose of Antitrust<\/h2>\n\n\n\n
Based on the definition given above, it is clear that the antitrust law aims to prevent companies from having a monopoly in a certain market. This is because competition assures an economy that produces and develops better standards of goods and services. Having competition also helps set prices at appropriate levels to make them affordable for all consumers.<\/p>\n\n\n\n
The main goal of this law is to prevent market concentration by prohibiting companies from controlling large amounts of total revenue, or in other words, it prevents companies from being dominant in a certain market.<\/p>\n\n\n\n
The Sherman Act<\/h2>\n\n\n\n
The Sherman Act is the act that most of the antitrust law is based on. The Sherman Act was set up in 1890, and it was one of the first official acts against companies that violated and created unlawful market dominance in a given market. The purpose of this act was to make sure that the companies compete with each other to lower prices while at the same time making sure that they provide high standards of products for consumers.<\/p>\n\n\n\n The Clayton Act was an extension of the Sherman Act, and it was set up in 1914. The purpose of this act is to make more strict regulations regarding monopolies. It also describes the guidelines that must be followed to determine whether a given company has unlawful market dominance in a certain market. The main purpose is to ensure that the companies compete and provide highly efficient products for consumers while at the same time making sure that they don\u2019t consume too much of the market share to have monopoly control over the market sector.<\/p>\n\n\n\n The Per Se Rule Antitrust law was not developed immediately after the creation of capitalism. In fact, it was many years later that the first antitrust laws were established. It is assumed that the antitrust law has been created to prevent monopoly control over a market, but this was not the case in the beginning.<\/p>\n\n\n\n In fact, the first antitrust laws were designed to prevent companies from forming in combination and from trying to create monopoly control over a given market sector.<\/p>\n\n\n\n The government applies antitrust laws to a single company that has attained control of a given market but not the whole market. For such a company to be considered operating unlawfully, it must have obtained over 50% of the total revenue in that sector.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.politicsphere.com\/wp-content\/uploads\/2021\/05\/justice-2060093_640.jpg\")
<\/figure>\n\n\n\nThe Clayton Act<\/h2>\n\n\n\n
Under the antitrust law, a certain rule states that if a company has over 50% of the market share, it is automatically assumed to be operating with an unlawful monopoly. This means that even without any evidence provided as proof that the company is attempting to control the market, this rule assumes that it does.<\/p>\n\n\n\nHistory of the Antitrust law<\/h2>\n\n\n\n
How the law is applied<\/h2>\n\n\n\n