By The Power of Antitrust Laws over Small Businesses
Whether you’re about to start or already running a small business, knowing antitrust laws effectiveness is paramount. Antitrust laws are the backbone against the competition. Open and free competition benefits customers by lowering prices and enforces better services and products.
Interestingly, below is how antitrust laws affect businesses, especially, small businesses. Let’s dive in.
If you were to be asked, as a small business owner whether you’ve ever acted to monopolize your industry, what would have said? Like most small business owners, one would smile and say something like “How do you expect me to beat the giants? How could I monopolize the industry?
Most entrepreneurs know one thing that is true is that Antitrust laws are the masters at work. Yes, they’re the big boys in any business and industry. In business, antitrust laws are about market power. They can independently affect you together with your competitors. Remarkably, every business owner should keep in mind that not every market is as broad as most think. Also, there is no need to follow a particular course of action to be liable in your business line.
And the question is, how do you prevent your business from getting into activities that might expose you to antitrust issues? Don’t involve yourself in any of the following:
- Discuss Prices
You may know or not know your competitors. Some people plan to get you into problems by trying to discuss with you about prices and more. Suppose you’re caught discussing costs with a competitor or customer, your business risk facing antitrust laws.
- Don’t share your Contract Terms
Like prices, contract information is a secret. It’s the glue that binds you and your suppliers’ or contractor’s relationship. Once you start discussing your contract terms, you may affect your business or your contact, which may get you involved with the antitrust laws’ legal effects.
- Don’t Discuss your Territories
Your market is your territory in business; once you discuss them, you’re killing your brand. While some people think it’s paramount to share with others about their markets, antitrust laws forbid it.
- Stay away from Motions
In business, everyone at some point faces motions aimed at boycotting a competitor or supplier. While many think it’s essential since it may force the accused person out of the market, you’re also risking closure of your business based on antitrust laws.
- Don’t force People Buying from you
There are circumstances when a business wants to clear old stock and sell stuff to people who agree to buy something else in return. While this may work time after time, you’re mainly risking your business in such acts.
- Don’t Engage in Unfair Business Practices
There are times in business when the best thing to do seems to kick others off the market. If you’ve ever thought about this, don’t since antitrust laws won’t leave you either. An excellent example of unlawful practices is when Google tried to monopolize other businesses by engaging in what the law stated crimes and forced them to be sued.
Additionally, while the above are some of the things to watch out for, antitrust laws affect business in:
- Not Being Cautions on Activities
While your business is a personal property, innocent settings like trade meetings, association gatherings, and more may get you on the wrong side of antitrust laws. Importantly, suppose you think that a competitor is operating beyond the acceptable bounds, your exit from a business conference needs to be of sound and mind. In a nutshell, demonstrate that you’re leaving a meeting without hurting others’ opinions and so.
Significantly, there are situations you wouldn’t know you’re violating antitrust laws, especially if you’re a small business. An excellent example is the 1980’s antitrust laws act where small businesses started taking bids on highway repairs and constructions. During that time, small business mostly those involved in physician and dentistry were charged and others penalized for antitrust violations based on fee schedules and more.
What to Know about Antitrust Laws Fines and Costs
Violating antitrust laws isn’t a walk in the park. The effect that comes with it can shut down a business. A conviction on violating these laws leads to a federal charge of about $10 million with others charged highly.
Suppose the rules find you wrong and decide not to charge your business, expect a fine of $350,000 or serve a three-year jail time. Moreover, antitrust laws aren’t affordable from your pocket’s efforts. They’ll waste your resources and close your business.
Running a business can be easier if you know how to stay away from violating the law. While there are other laws, antitrust laws can primarily affect your small business. Watching out for these and more will correctly help your start-up skyrocket.
