Antitrust and Small Businesses

This article will define and explain antitrust and how it relates to small businesses.

What is an Antitrust?

An antitrust, as it relates to small business, is an act opposing or regulating trusts, cartels, monopolies, or other similar organizations. This regulation or opposition is set forth to prevent unfair competition. Antitrust laws outlaw monopolies in the market place to promote free competition.

Avoiding Antitrust Trouble

The first thing a small business can do to avoid antitrust trouble is understand their industry. If they do not understand their industry, they risk misinterpreting the laws, possibly leading to breaking an antitrust law. Part of avoiding antitrust trouble involves the potential to spot possible antitrust issues and adopting preventative measures to avoid antitrust measures. If a small business owner needs help understanding their industry, identifying possible antitrust issues, and developing preventative measures, they can consult outside help that is knowledgeable about antitrust laws and rules.

Legal Counsel

As a rule, all proven antitrust damages are multiplied by three. This results in very expensive violations. In cases where small business owners are not knowledgeable about antitrust laws, obtaining legal counsel can be very beneficial and can help them avoid costly violations. Antitrust issues that require extensive experience and analysis are often best suited for lawyers who know a lot about them. Such antitrust issues include pre-merger filings, monopolization allegations, and criminal investigations.

Antitrust Contracts

All small business owners should regularly review contracts and sensitive documents. Such documents include agendas, marketing plans, and strategy papers for trade association meetings. Doing so will prevent the wrong messages from being sent.

A prime example of a company not reviewing their documents is the Microsoft trial. Many email messages were sent and not viewed as humorous or inappropriate by Microsoft employees. If Microsoft has taught small business owners anything, they have taught them to never joke about violating rules and laws. A rule of thumb for small business owners is to never say or write anything that you would be too embarrassed to have printed on a national newspaper.

To make sure that all files stay current, within antitrust laws, and appropriate, small business owners can develop a document retention plan. This plan will only work, however, if the staff is encouraged to follow it.

Read on to the next page for a summary of specific laws relating to antitrust.

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