Antitrust
Antitrust laws protect consumers from predatory business practices by ensuring that fair competition exists in the open-market economy. Antitrust laws cover a wide variety of business practices including: price-fixing, market allocation, and bid rigging.
Tying
Were you forced to buy an undesirable good in order to purchase a product you actually wanted?
Unfair Competition
Did you pay higher prices for an inferior product because competition in the marketplace is lacking or unfair?
Price Fixing
Did you pay higher prices for a product whose prices have been fixed by a conspiracy among competitors?
Do I have a case?
Every case is different. If you believe that you have been hurt by unfair business practices (as described below), you should seek the advice of an experienced antitrust attorney. Contact the Eureka Law Firm for your free case evaluation. State and federal laws limit how long you have to pursue your claims. Therefore, you must seek legal help immediately in order to protect your rights.
Generally speaking, state and federal antitrust laws prohibit anticompetitive behaviors and unfair business practices. Not all anticompetitive behaviors are, however, unlawful. Some behaviors are only unlawful if they are “unreasonable.” Other behaviors are so pernicious that courts have deemed them “per se unlawful.” Per se violations include:
Market Allocation: Agreements in which competitors divide markets among themselves violate state and federal antitrust laws. These violations are not limited to geographic market division. Competitors may also violate antitrust laws by allocating specific customers, products or territories among themselves.
Price-Fixing: Agreements among competitors to alter, fix, or maintain the price at which products or services are sold violate state and federal antitrust laws. This may occur at the buyer or seller level. There are two primary types of price fixing: (1) Horizontal, an agreement among competitors at the same level of the distribution chain (e.g., an agreement among manufacturers); and (2) Vertical, an agreement among parties in the same distribution chain (i.e., a supplier-manufacturer agreement). Only horizontal price fixing is considered a per se violation of the antitrust laws.
Predatory Pricing & Bidding: A company that prices its products below cost for the purpose of eliminating competition (“Predatory Pricing”) violates state and federal antitrust laws. Similarly, a company that bids up the price of raw materials to prevent competitors from acquiring needed materials (“Predatory bidding”) violates antitrust laws.
Collusive Bidding: An agreement amongst two or more competitors to alter their bids for the purchase or provision of a particular product or service violates federal and state antitrust laws.
Tying Arrangements: The practice of selling one product or service as a mandatory addition to the purchase of a different product or service violates state and federal antitrust laws. Only tying arrangements that substantially restrict commerce are considered per se violations.
What evidence should I look for?
You should consult with a trained lawyer to determine if the antitrust laws are being violated. The Eureka Law Firm offers free consultations and case evaluations to anyone who suspects the antitrust laws are being violated. While the facts must be evaluated on a case by case basis by a trained profession, telltale signs can include:
- Evidence that two or more competing sellers of similar products have agreed to price their products in a certain way, to sell only a certain amount of their product or to sell only in certain areas or to certain customers.
- Large price changes involving more than one seller of very similar products of different brands, particularly if the price changes are of an equal amount and occur at about the same time.
- Statements from a seller suggesting that only one firm can sell to a particular customer or type of customer.
- Fewer competitors than normal submit bids on a project.
- Competitors submit identical bids.
- The same company repeatedly has been the low bidder on contracts for a certain product or service or in a particular area.
- Bidders seem to win bids on a fixed rotation.
- There is an unusual and unexplainable large dollar difference between the winning bid and all other bids.
- The same bidder bids substantially higher on some bids than on others and there is no logical cost reason to explain the difference.
Can I file my case as a class action?
You are probably familiar with many of the high-profile antitrust lawsuits brought by the Department of Justice. Recall the breakup of AT&T in the 1970s. Antitrust lawsuits can also be brought by individual consumers as a class action. These civil cases seek to compensate purchasers for the artificially high prices paid as a result of unfair competition (e.g., price fixing, market allocation or bid rigging). Private lawsuits perform a valuable role in deterring anticompetitive conduct and ensuring a healthy marketplace – the hallmark of capitalism.
What can I recover?
As a consumer, you can recover three times the amount of your damages (based on supra-competitive pricing), attorneys fees and costs.