Antitrust laws are a set of laws that were made to protect consumers from unfair market places by promoting fair competition and prohibit monopolies from existing. These laws help to regulate the behavior and conduct of organizations to prevent from illegal acts such as price fixing, restraining, price discrimination or monopolizing (“Legal Information Institute”, 2007). Dated back to the 1800’s, it was common for one major company to have significant power over the economy, also known as trusts. Oil, railroads, steel and sugar were each controlled solely by one company and could set prices as high as they wanted due to its high demand (Killingsworth 2010). Out of fear that these companies would take control of the market and set higher
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Along with the Sherman Act, two other acts were passed. In 1914, the Clayton Act was passed to help protect consumers from merging companies who were apt to work together in pricing, and the Federal Trade Commision Act created a new federal agency that regulates, enforces and investigates to assure there is no unfair competition and to punish those that do so (“Federal Trade Commission”). Not only do these Antitrust laws apply in the regular market economy selling goods, but has become big in healthcare as well. Since the acts were implemented, multiple court cases involving insurance companies, hospitals, and other services related to health care have tried merging with other companies and in result creating anti competitive behaviour. With hospitals merging and deciding to work together to create a more valuable health care system for patients, it can be difficult for these organizations to do so without violating antitrust laws. Although this can be avoided by following rules and guidelines, organizations may not bother or try to surpass them and get in trouble for violating these laws. Although these unfair mergers and competitions still exist, it has become less frequent over the years with the amount of regulation by the Federal Trade Commission and Antitrust Division of the Justice
Along with the Sherman Act, two other acts were passed. In 1914, the Clayton Act was passed to help protect consumers from merging companies who were apt to work together in pricing, and the Federal Trade Commision Act created a new federal agency that regulates, enforces and investigates to assure there is no unfair competition and to punish those that do so (“Federal Trade Commission”). Not only do these Antitrust laws apply in the regular market economy selling goods, but has become big in healthcare as well. Since the acts were implemented, multiple court cases involving insurance companies, hospitals, and other services related to health care have tried merging with other companies and in result creating anti competitive behaviour. With hospitals merging and deciding to work together to create a more valuable health care system for patients, it can be difficult for these organizations to do so without violating antitrust laws. Although this can be avoided by following rules and guidelines, organizations may not bother or try to surpass them and get in trouble for violating these laws. Although these unfair mergers and competitions still exist, it has become less frequent over the years with the amount of regulation by the Federal Trade Commission and Antitrust Division of the Justice