Scholar and jurist Richard Posner argues,
The protection of small business whatever its intrinsic merit cannot be attained within the framework of antitrust principles and procedures. The small businessman is, in general, helped rather than hurt by monopoly, so unless the antitrust laws are stood completely on their head they are an inapt vehicle (compared, say, to tax preferences) for assisting small business.
Is antitrust law an inappropriate vehicle for protecting small business? Please explain.
Should we protect small business?© BrainMass Inc. brainmass.com June 3, 2020, 9:05 pm ad1c9bdddf
* Is antitrust law an inappropriate vehicle for protecting small business please explain
I concur with Scholar and jurist, Richard Posner in his argument about the protection of small business. Research shows that antitrust law is, in fact, an inappropriate vehicle for protecting small business. Sharon Devine,ESQ of Lawyers.com references that, "Many small businesses think that antitrust applies only to big business [but they are mistaken]. Antitrust laws are based on the idea that competition creates the largest choice of products and services, with the widest range of quality and price. Laws keep competition robust by preventing unreasonable barriers to competition.
However, the rules are no guarantee that competitors will be equal. There are two flavors of antitrust - monopolization and agreements by competitors to restrain trade.
Agreements that restrain trade include price fixing, bid rigging, allocating customers or markets, and boycotting competitors or suppliers. It doesn't matter how big or small your business is, as certain agreements are illegal regardless of your justification. More importantly, they're criminal.
For example, agreeing with competitors to hold the line on price reductions or to buy from a supplier only if the price stays at a certain level is considered "price fixing." Having a "gentleman's agreement" that one dairy service will ...
The solution discusses Antitrust law to determine if it is an inappropriate vehicle for protecting small businesses.