A Costa Mesa business attorney can explain that businesses sometimes interfere with the free market system on which capitalism is based. Federal and state antitrust laws prohibit certain behavior by businesses and individuals that are made to try to raise prices on consumers.
Prohibited Activities
Federal law prohibits businesses from engaging in behavior that unreasonably restrain interstate commerce or foreign trade. Monopolies in which competition is stifled are also prohibited. A business attorney Orange County can explain that these activities include price fixing in which sellers of similar products agree to charge particular prices as part of a conspiracy. This may include agreeing not to go under a certain price. Another prohibited activity is making an agreement between competitors to split up a market in order to reduce or eradicate competition. Another common issue is bid rigging. This occurs when two or more companies agree to bid in a manner that will almost undoubtedly secure government contracts.
Determining when Prohibited Activity Is Occurring
Private parties are sometimes able to bring private lawsuits based on violation of antitrust laws. Some signs that prohibited conduct is occurring includes:
- Significant price changes occur between multiple brands of the same product at about the same time
- Few companies compete for a bid when there would normally be more
- Competing businesses submit identical bids
- There is a significant difference between the winning bid and all other bids
Legal Assistance
If you would like more information about antitrust laws, contact a Costa Mesa business attorney from Daily Aljian LLP.