Final answer:
The 'Competition Act' refers to laws designed to prevent anti-competitive practices such as monopolies, price fixing, and other unfair trade behaviors. Enforced by the FTC and U.S. Department of Justice, it seeks to promote fair competition and protect consumers by preventing practices that would significantly reduce competition in the market.
Step-by-step explanation:
Definition of the 'Competition Act'
The 'Competition Act' is a comprehensive statute designed to regulate anti-competitive practices in the marketplace. It targets monopolies, unfair competition, and other deceptive practices that could harm the competitive landscape.
The Competition Act, often used alongside the Clayton Act, aims to maintain fair competition by prohibiting actions such as price fixing, bid rigging, and market allocation among competitors.
It further extends its reach to forbid mergers and acquisitions that would substantially lessen competition. The Federal Trade Commission (FTC) and the U.S. Department of Justice are key enforcers of antitrust laws, ensuring firms don't engage in practices that hinder competition and harm consumers.
Public policy in this context strives to differentiate between business behaviors, promoting those beneficial to society while curtailing those that aid few large companies without corresponding consumer benefits.
Challenges exist in interpretation and enforcement, as the legal framework requires balance between firm conduct guidance and prevention of regulatory abuse by competitors. The FTC and the Department of Justice grapple with these complex issues to maintain a competitive economy.