Further, in case a buyers’ cartel does not have a negative impact on the competition process, simply bringing it under the ambit of Section 3 does not impair its existence or operation. The second requirement further qualifies the ‘trade, business…’ in terms of its function. Antitrust laws are regulations that encourage competition by limiting the market power of any particular firm. Although most enforcement actions are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice. Section 3(3), in its chapeau, qualifies that parties to the agreement should be ‘engaged in identical or similar trade of goods or provision of services’. The preamble of the Act mentions ‘to promote and sustain competition in markets’ as one of the goals. The DOJ has jurisdiction in telecommunications, banks, railroads, and airlines. In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton Act.
It is used in order to get a favorable price from suppliers by mitigating the adverse effects of seller’s power in the market.
Buyers’ cartels fulfill the first requirement since they can be in the ‘trade or business’ of buying commodities. In 2020, the Federal Trade Commission, or FTC, is a federal agency in charge of enforcing federal antitrust laws. It was the first example of antitrust law but was less influential than the Sherman Act, passed in 1890. While there is nothing, The definition of ‘trade’ under Section 2(x) has two requirements. In Pandrol Rahee, CCI used the definition of ‘trade’ in Section 2(x) to exclude buyers’ cartels from Section 3(3) of the Act. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The Sherman Act, the Federal Trade Commission Act, and the Clayton Act are the key laws that set the groundwork for antitrust regulation. The FTC and DOJ also work with regulatory agencies in ensuring certain mergers fit the public interest.
In 1914, Congress passed the Federal Trade Commission Act, banning unfair competition methods and deceptive acts or practices.
Buyers’ cartels can fall under Section 3(1), which has been understood as a standalone provision by the Competition Commission of India (Commission / CCI). The Senate Judiciary Subcommittee on Antitrust held an oversight hearing on antitrust enforcement efforts at the Justice Department and the Federal Trade Commission.
Such an argument is also in line with the purpose of the Act as discussed below.
Admittedly, the court in Pandrol Rahee followed expressio unius est exclusio alterius. The FTC Act also reaches other practices that harm competition, but that may not fit neatly into categories of conduct formally prohibited by the Sherman Act.
Buying goods is necessarily related to gaining / seeking to gain control over the goods. In early 2014, Google proposed an antitrust settlement with the European Commission. Courts have applied the antitrust laws to changing markets, from a time of horse and buggies to the present digital age. The Clayton Act addresses specific practices that the Sherman Act does not clearly prohibit, such as mergers and interlocking directorates (that is, the same person making business decisions for competing companies). While it was not the aim of this article to delve into this distinction and the regulatory safeguards needed, it is nevertheless imperative to recognize this potential oversight in case the Bill was to come into effect.