The Antitrust Paradox

The Antitrust Paradox refers to the conflict between promoting competition and protecting consumer welfare in antitrust law. Traditionally, antitrust enforcement aimed to prevent monopolies and promote rivalry, but sometimes, actions that benefit consumers—like mergers that lower prices—can also limit competition. This creates a dilemma: should the law act against companies that reduce prices even if it leads to less competition in the long run? The paradox highlights the challenge of balancing immediate consumer benefits against the potential risks of reduced market competition, raising questions about how best to ensure fair markets.