Documents/FTC2010/2: Maintain Competition/2.2: Law Enforcement

2.2: Law Enforcement

Stop anticompetitive mergers and business practices through law enforcement

Other Information:

In addition to its law enforcement activity, the FTC provides substantial information to the business community and consumers about the role of the antitrust laws and businesses’ obligations under those laws. Our Strategy: The FTC uses education and outreach to increase business compliance, which helps prevent consumer injury, and augment its law enforcement efforts. The agency pursues this strategy through guidance to the business community; outreach efforts to federal, state, and local agencies, business groups, and consumers; development and publication of antitrust guidelines, policy statements, and reports; and speeches and testimony. By using these mechanisms to signal its enforcement policies and priorities, the FTC seeks to deter would-be violators of the antitrust laws. in its complaints, “analyses to aid public comment,” and press releases, the agency explains the relevant facts and issues of cases in which it files complaints or obtains consent orders, so the nature of the competitive problems is clear. each successful enforcement action not only promotes competition in one or more relevant markets, but also serves to communicate to the business and legal communities that the FTC can and will take action to challenge similar transactions or conduct in the future. This information greatly facilitates antitrust lawyers’ counseling of their clients and prevents many anticompetitive mergers from being proposed or anticompetitive practices from being implemented. in addition, the FTC educates the public through guidelines, congressional or other types of testimony, conferences, speeches, hearings, and workshops (such as the series of workshops on the horizontal merger guidelines and intellectual property rights); advisory opinions (addressing, for example, the licensing requirements for limited service health care clinics); and reports (such as the reports on the ethanol market and on the savings lost to consumers through pay-for-delay agreements). as a complement to the FTC enforcement activity, the agency also advises, when asked, other federal and state government officials about the possible effects that various regulatory and legislative proposals may have in creating, maintaining, or forestalling competitive markets. The FTC has a long and distinguished history in this area. The FTC advocates market-based solutions through the publication of studies and reports, and participation in state and federal legislative and regulatory fora. The agency also participates as an amicus curiae (friend of the court) in judicial proceedings when substantial questions of antitrust law or competition policy are involved, especially when the FTC may add a different perspective to the deliberations because of its specialized knowledge or experience. finally, in an effort to continue educating consumers and businesses on the important role of competition in providing the most valuable and efficient mix of price, choice, and innovation, the FTC continues to publish reference and case-related documents. another way the FTC achieves this goal is to improve how topical information, case materials, and reference documents are organized—in an effort to aid visitors in searching and finding relevant information—and to continuously update the growing body of reference material. Performance Results: The FTC uses one measure to assess its performance in preventing consumer injury through education. The key measure (Performance Measure 2.2.1) tracks the volume of traffic on the FTC website on antitrust-related pages that are relevant to policymakers, the business and legal communities, and the public at large. This performance measure is an indicator of the flow of information provided to the public. successful outreach and education efforts, as reflected by this measure, will help consumers, because increased knowledge and understanding of the antitrust laws will help businesses stay in compliance. This measure also will help ensure that the agency engages in consumer, business, and international education that advances the culture of competition, which enhances consumer welfare. The results of this measure would seem to indicate a significant continued public interest in the FTC and its Maintain competition strategic goal. in addition, the broad and increasing distribution of educational and policy materials through electronic channels represents important leveraging of the agency’s resources.

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