The United States Federal Government has established a variety of anti-trust laws in order to prohibit unfair business practices and behavior that limits competition. Through anti-trust legislation, the U.S. Government encourages business competition. It is widely believed that competition is necessary to maintain a stable and functioning economy. Therefore, anti-trust laws prohibit the formation of monopolies.
A monopoly is a situation in which one corporation has complete control over a certain economic sector. For instance, under anti-trust policy Microsoft was deemed a monopoly because it was the only corporation that supplied the public with computer operating systems. As a result, the Federal Government took action to dissolve the monopoly.
Anti-trust legislation plays an important role in protecting consumers in the United States, as it helps to prevent unreasonable inflation. Business competition requires companies to provide consumers with reasonably prices items. In addition, it encourages technological advancement and product improvement.