Antitrust Laws

A. To regulate corporations, the government passed the Antitrust Laws to protect the public and companies. These laws were the Sherman Act of 1890, the Clayton Act of 1814, the Federal Trade Commission Act of 1914, and the Celler-Kefauver Act of 1950. The Sherman Act was created to outlaw monopolization and also prohibited anticompetitive stock trading. After experiencing that the Sherman Act had inconsistencies in its wording that reduced its effectiveness, the Clayton Act was passed which strengthened the Sherman Act in that it prohibited firms from merging with other firms if it reduced competition, it prohibited price discrimination which leveled the playing field for purchasing companies and encouraged competition, it prohibited exclusive dealings and tying contracts which could also reduce competition, and finally it prohibited any person from holding more than one Director position with any competing company. The Federal Trade Commission Act was passed to create a governmental organization that regulated trading practices and was given authority to issue cease and desist orders to any corporation found in violation. Because the Clayton Act did not specify whether a firm could acquire physical assets of competing firms in order to sabotage or manipulate them, the The Celler-Kefauver Act was passed and it closed that loophole. Also, it regulated vertical and conglomerate mergers which were deemed anticompetitive.

B. The purpose of industrial regulation on market structures is to protect consumers. Also, regulation exists to encourage competition in order to achieve more stable market conditions for consumers and producers. When it comes to market structures, the most regulated are oligopolies and monopolies.

1. O...

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...ese types of organizations have tremendous control over the market. The purpose of industrial regulation on Monopolies and Oligopolies is to provide a fair price to consumers

C. The three primary federal and state regulatory commissions that govern industrial regulation are the following:

First, the Federal Energy Regulatory Commission is a government agency that regulates the economic, infrastructure, and transmission of electricity, natural gas, and oil across states. It also regulates natural gas and hydropower projects. Second, the Federal Communications Commission regulates interstate and international communications by radio, television, wire, satellite and cable in the U.S. Lastly, the State Public Utility Commissions regulate the rates and services of utilities that provide essential services such as energy, telecommunications, water, and transportation.