Consumers typically want the lowest possible price for services or goods. Simultaneously, businesses seek to charge as much as possible to boost profit margins. However, the law of supply and demand forces businesses to have a competitive pricing strategy, unless there is no other competition or if multiple businesses agree to artificially set their supply or prices. Florida’s markets are protected from these types of unscrupulous business practices by antitrust laws.
What Are Florida Antitrust Laws?
If no competition exists, businesses have little incentive to entice new customers, which can lead to inflated pricing. As a result, Florida and federal legislation discourage certain acquisitions and mergers that would result in the business having a grossly unfair advantage or a monopoly. Florida allows lawsuits against a company if this type of situation exists.
What Is a Monopoly?
The first step in an antitrust case is for the courts to determine if a business has created a monopoly. A business is said to have a monopoly if it has complete economic control over a specific market. In order for antitrust laws to come into effect, the courts must determine whether this favorable positioning was maintained or gained through improper conduct.
It is important to understand that natural monopolies are not illegal. A natural monopoly forms in the normal process of an emerging economy, and businesses have no control over its formation. However, it is illegal for one brand to drive the competition out of business by conspiring with others, which would create a monopoly.
What Is the Goal of Antitrust Enforcement?
The goal of antitrust legislation is to protect free commerce and trade from rogue practices, such as price-fixing and monopolies. Florida enforces these laws via the following:
- Consumers or competing businesses can file a private right of action. If the lawsuit is found successful, the plaintiff can recover losses caused by the unfair practice.
- State attorneys are able to sue on behalf of Florida. If this process is successful, Florida’s court can enforce an injunction that prohibits the practice and results in the business paying a monetary fine to consumers.
Contact the Khonsari Law Group for Legal Representation
If you or a loved one is facing criminal charges, you need a team of qualified attorneys on your side. The Khonsari Law Group’s experienced criminal defense attorneys understand the intricacies of white collar crime charges and will work hard to defend you. Contact us today for a free consultation and case evaluation.