Violations of antitrust law are either per se violations or rule of reason violations. What are the differences between these two types of violations? Give examples of each


A per se violation is a violation that is automatically illegal. It is irrelevant what the effect of the given conduct is on competition; the conduct, in and of itself, is illegal. Defendants are subject to both criminal and civil penalties. The Justice Department has sought criminal sanctions against per se violators. Examples would include price fixing, bid-rigging, or an agreement by competitors to divide their market among themselves.

A rule of reason violation will be illegal only if it results in harm to competition. Such violations are viewed on a case-by-case basis. Examples of rule of reason situations would include refusal to deal arrangements and reciprocal dealing agreements.

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