19.6: Enforcement

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Antitrust laws impose both civil and criminal penalties. A private business that has been injured by anticompetitive practices may sue for damages. To encourage private enforcement, the Sherman and Clayton Acts award successful litigants treble (i.e. triple) damages and attorneys’ fees. To be successful, a plaintiff must show that an anticompetitive act directly resulted in a tangible injury.

However, most antitrust actions involve governmental enforcement. This makes sense because the government has the power to investigate and subpoena that private businesses do not. It also saves businesses a lot of money for the government to enforce the laws rather than through private litigation.

Both the Department of Justice and the Federal Trade Commission enforce antitrust laws. Both agencies may pursue civil and criminal remedies for violations of the law.

Civil remedies include:

Injunctions (court orders prohibiting the business from committing further violations);
Consent decrees (court-approved agreements in which a party does not admit wrongdoing but agrees to change its behavior); and
Divesture orders (court orders requiring a company to sell its interest in an acquired company).

The Department of Justice may also pursue criminal charges for violations of antitrust laws. If convicted of a felony, individuals may be fined up to $1 million per violation and may be sentenced up to ten years in prison. A business may be fined as much as $100 million per violation.

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