Suppose that smart phone producers meet secretly and agree to issue the smart phones of their most successful models sequentially and at the same price that maximizes their profits. After hearing about the secret meeting the U.S. Justice Department is most likely to file charges under the

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The Sherman Act is the primary federal law that prohibits anticompetitive practices and monopolies. It specifically prohibits agreements among competitors to fix prices, limit the production or supply of goods, or allocate markets. This scenario describes an illegal agreement among smartphone producers to issue their most successful models at the same price, which would likely violate the Sherman Act. The Wheeler-Lea Act and Robinson-Patman Act are also antitrust laws, but they address different types of anticompetitive practices. The FTC Act is a consumer protection law that empowers the Federal Trade Commission to regulate unfair and deceptive business practices. However, in this scenario, the issue is not about unfair or deceptive practices, but about anticompetitive collusion.

Suppose That Smart Phone Producers Meet Secretly and Agree to Issue