Playing Fair

TN Standard E.23: How the U.S. acts as the referee to promote business competition and fight monopolies.

The Threat: Monopolies

Monopoly: When one company dominates an entire market and wipes out all competition.

Trust: A group of companies that secretly agree to stop competing and raise prices together (price-fixing).

Result: Higher prices, terrible service, and zero choices for you.

The Rulebook: The Laws

Sherman Antitrust Act (1890): The ultimate weapon. Made it illegal to form a trust or monopoly that restricts trade. Used to break up giants like Standard Oil.

Clayton Antitrust Act (1914): Closed the loopholes. Banned specific shady practices like charging different prices to different buyers to kill competition.

The Referees: Enforcement

Federal Trade Commission (FTC): The watchdogs. They stop unfair business practices, false advertising, and review corporate mergers.

Department of Justice (DOJ): The lawyers. The Antitrust Division takes companies to court when they break the rules of fair play.

Game Time: Fair or Foul?

Read the business scenario below. Are these companies playing by the rules of competition, or are they breaking antitrust laws?

Scenario 1: Three local gas stations secretly agree to all raise their prices by $1.00 tomorrow morning.