Violation Of Antitrust Laws

Around 1890, Congress started to create antitrust laws, and several cases involving antitrust laws as early as the past year, such as the Sherman Act which outlaws "every contract, combination, or conspiracy in restraint of trade," and any "monopolization, attempted monopolization, or conspiracy or combination to monopolize.” The antitrust laws prohibit illegal mergers and commercial practices in general terms, thus leaving the courts to decide on which practices are unlawful based on the facts of each case.
In December 1971, the American Electric Power Co sued GE and Westinghouse for alleged conspiracy in violation of the Sherman Act, an antitrust law. Specifically, GE and Westinghouse was charged with upholding an agreement to eliminate price competition, establishing uniform prices and submitting non-competitive bids to purchasers. GE denied these charges and later filed a countersuit in March 1972. American Power’s CEO, Donald C Cook, labeled GE’s counterclaim as
Soon after, the Department of justice continued its investigation of the company, arguing that “This public exchange of assurances, with such intent, did constitute an agreement to stabilize prices which warranted the filing of a civil action ... alleging a violation of the Sherman Act”, (Cabral, 2). GE and