TN Economics Standard E.23

Market
Integrity.

Discover how the U.S. government acts as the ultimate referee, using antitrust laws to dismantle monopolies, stop price-fixing, and protect your right to choose.

The Playbook: Rules of Competition

🏛️

Sherman Act (1890)

The original trust-buster. Makes it a federal crime to conspire to restrict trade or form a monopoly. Used to break up Standard Oil into 34 pieces.

📜

Clayton Act (1914)

The preventative measure. Closes loopholes by banning specific practices like unfair price discrimination and corporate mergers that destroy competition.

⚖️

The Enforcers

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) are the dual watchdogs tasked with dragging rule-breakers to federal court.

Modern Monopoly Files

FEDERAL RULING: MONOPOLY

The Search Engine Chokehold

The Charge: The DOJ sued Google, proving they paid companies like Apple over $20 billion a year to be the default search engine on all iPhones and browsers. By buying the default spot, they illegally locked out competing search engines before consumers even had a chance to choose.

In August 2024, a federal judge officially ruled that Google violated the Sherman Act.

DOJ LAWSUIT PENDING

The Live Event Extortion

The Charge: The DOJ filed a massive lawsuit to break up Live Nation-Ticketmaster. The government argues the company uses its control over major arenas to force artists to use their ticketing system, punishing anyone who tries to use a rival service. The result? Astronomical hidden fees for fans who have no alternative.

DOJ LAWSUIT PENDING

The Walled Garden

The Charge: The DOJ accuses Apple of operating an illegal monopoly over the smartphone market. They allege Apple designs the iPhone to deliberately make it harder and more expensive for users to switch to Android, blocks innovative apps, and suppresses mobile cloud gaming to protect its own App Store profits.

Final Assessment

Question 1 / 4 Score: 0

Loading...