What Every Business Should Know About the Sherman Antitrust Act

Practical Tips and Pitfalls to Avoid Antitrust Problems

The U.S. antitrust laws are designed to preserve and promote free competition. In a competitive marketplace, there are strong incentives for rival businesses to operate efficiently, keep prices down, and boost their product and service quality. Businesses continue to find innovative ways to achieve these goals, including through efforts that may raise antitrust concerns but are ordinarily lawful — like joint ventures, exclusive arrangements, and benchmarking exercises with competitors.

But the antitrust laws are intricate, and the line between pro-competitive and illegal conduct under these laws is highly dependent on the details. This often makes it difficult for many businesses to know whether certain practices violate antitrust laws. Moreover, even inadvertent violations can result in substantial penalties. As a result, it is essential for companies to understand the basic scope of the antitrust laws and