Individuals or businesses that believe they have been harmed by antitrust violations can bring a private action against the offending company.
Group of answer choices
True
False
The correct answer and explanation is:
Correct Answer: True
Antitrust laws, such as the Sherman Antitrust Act and the Clayton Act in the U.S., are designed to prevent anti-competitive practices and promote fair competition in the market. These laws prohibit various types of business practices that can harm competition, such as price-fixing, monopolistic behavior, and unfair mergers.
Individuals or businesses that believe they have been harmed by such violations have the right to bring a private lawsuit, also known as a private right of action, against the offending company. This is an important mechanism that helps enforce antitrust laws, as private parties who have suffered harm due to anti-competitive behavior can seek compensation for damages.
In these cases, the plaintiff must demonstrate that the anti-competitive practices resulted in direct harm. For example, if a business was unable to compete in the market because of monopolistic pricing or collusion between competitors, it may seek redress. If the case is successful, the plaintiff may be entitled to damages, and in some cases, these damages can be tripled as a form of deterrence (known as “treble damages”).
Moreover, under antitrust laws, both individuals and businesses can sue, and they do not have to wait for government agencies to take action. This private enforcement of antitrust laws provides a powerful tool for maintaining competitive markets.
Additionally, the Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) can also bring enforcement actions against companies engaging in antitrust violations. However, private lawsuits supplement these efforts by allowing harmed parties to seek relief directly.
This system ensures that businesses and individuals can actively participate in keeping the market competitive, which ultimately benefits consumers by fostering innovation, lower prices, and more choices.