Sanctions Under Antitrust Law - Explained
How are the Punishments for Violation of Antitrust Laws?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsWhat sanctions are available under the antitrust laws?Discussion QuestionPractice QuestionAcademic Research
What sanctions are available under the antitrust laws?
Together the Sherman Act, Clayton Act, and FTC Act allow for four legal sanctions:
- Injunctions of Activity - Injunctions order a party not to violate or continue violating antitrust provisions. These can be administrative or judicial.
- Treble (triple) Damages - Plaintiffs may recover civil damages suffered as a result of a violation of the antitrust laws. Section 4 of the Clayton Act authorizes victims in a civil action (private parties or the US Government) to collect three times the damages they have suffered, plus court costs and reasonable attorneys fees.
- Criminal Fines and Imprisonment (felonies) - Individuals fined up to $1 million and 10 years in prison. Corporations may be fined up to $100 million per offense.
- Nolo Contendere - Defendants will often plead nolo contendere in a criminal action and focus on defending the civil action case. The reason is that a criminal conviction is largely conclusive in proving violation in the civil court. A nolo contendere plea avoids this scenario.
The FTC, DOJ, state governments, and private parties may bring actions to enforce antitrust laws and may seek any combination of the above sanctions.
Next Article: What is the Sherman Act? Back to: ANTITRUST LAW
- What is Antitrust Law?
- What are the Major Antitrust Laws?
- What government agency enforces antitrust law?
- What Sanctions are available under antitrust law?
How do you feel about the sanctions associated with violations of the antitrust laws? Should there by criminal penalties attached to this conduct?
MicroData, Inc, produces software for use personal computers. MicroData has been pricing its product at below its cost of production in an effort to force its primary competitor, DataServe, out of the market. MicroData received a cease and desist order from the FTC, but it has continued the practice. What are the possible sanctions that MicroData could face in this situation?