How Do Competition Authorities Enforce These Laws?
Competition authorities, such as the Federal Trade Commission (FTC) in the United States or the European Commission in the EU, are tasked with enforcing competition laws. They investigate suspected violations, impose penalties, and can mandate changes in business practices. Enforcement actions may include:
Fines: Companies found guilty of anti-competitive behavior can face substantial fines. Injunctions: Authorities can order firms to cease and desist from unlawful activities. Divestitures: In cases of mergers, authorities may require firms to sell off parts of their business to restore competition. Damages: Affected parties can sue for damages caused by anti-competitive practices.