Antitrust laws have been established by the government to prevent monopolies from overpowering the economy under a belief that the economy functions best when competition among firms exist. The laws were set forth to protect consumers from being forced to overpay for products by large corporations preventing competition. They limit abuses of economic power to preserve competition and protect consumers. Whom does the antitrust policy protect?
Sherman Act. The act, based on the constitutional power of Congress to regulate interstate commerce, declared illegal every contract, combination (in the form of trust or otherwise), or conspiracy in restraint of interstate and foreign trade. A fine of $5,000 and imprisonment for one year were set as the maximum penalties for violating the act.
In 1914, a new act was passed by lawyer Henry De Lamar Clayton of Alabama and was called the Clayton Antitrust Act. It aimed to re-enforce the Sherman Act by giving the government more power when faced with monopolies. It strictly outlawed companies to engage in price-fixing agreements and lessen competition. The act also disallowed individuals to serve as directors at competing companies. (investopedia.com)
Government
The government noticed Microsoft's (MS) strong-arm tactics to remain the lead web browser among the internet world after a small software company (Netscape) accused MS of unfair competitive practices. The government was able to present evidence of anticompetitive activities by MS. They were conspiring to monopolize the market and control it from anyone else entering the market place. MS both has illegally maintained its existing operating system monopoly and has attempted to extend that monopoly into other products, and has violated Section 1 of the S ...