|Antitrust policy refers to the actions the government takes to promote competition among firms in the economy. Antitrust policy includes challenging and breaking up existing firms with significant market power, preventing mergers that would increase monopoly power significantly, prohibiting price fixing, and limiting anti-competitive arrangements between firms and their suppliers.|
- To prohibit anti-competitive activities (which include agreements to fix prices or divide up territories, price discrimination, and tie-in agreement) and,
- To break up monopoly structures. In today’s legal theory, such structures are those that have excessive market power (a large share of the market) and also engage in anti-competitive acts.