Federal antitrust law rests mainly on the Sherman Act and the Clayton Act. Together they ban trade-restraining deals between rivals, monopolizing and some mergers. The Department of Justice (DOJ) and the Federal Trade Commission (FTC) enforce them. This page is for owners running a U.S. business from, or tied to, Canada or India.
Who do the Sherman Act and Clayton Act cover?
| Rule | Who is covered | Threshold or exemption |
|---|---|---|
| Sections 1 and 2 of the Sherman Act | Any person or business engaged in commerce between states or with foreign nations | None; no size floor |
| Clayton Act section 7 | A person in commerce acquiring stock or, in FTC-jurisdiction cases, assets | Any deal size, filed or not |
| HSR filing (section 7A) | Deals above the size test | Above $535.5 million: reportable. $133.9 to $535.5 million: only if a party-size test is met. At or under $133.9 million: not reportable (2026) |
| Clayton Act section 8 | An officer or director serving two competing corporations | In 2026, each above $54,402,000, unless a small-sales safe harbor applies |
What it means for a foreign-owned or cross-border business
| Situation | What the law says | What to check |
|---|---|---|
| A parent in India or Canada owns a U.S. company or foreign-owned LLC | Sections 1 and 2 reach trade among the states and with foreign nations | Whether the U.S. arm sets prices, bids and territories alone, even in owners' talks with rivals |
| One person sits on boards in several countries | Section 8 bars serving two competing corporations above the 2026 limits; one year to step down after a later change | List every seat. Ask counsel about LLCs and foreign companies |
| Buying or selling a U.S. business | Section 7 applies at any size; HSR filing only above the 2026 tests | Ask counsel how a foreign parent's size is counted. Tax steps: closing guide |
| Hiring the first U.S. employees | Agreements with other employers on pay or not to hire each other's workers can be prosecuted (FTC-DOJ guidelines, January 2025) | Set pay yourself. See the hiring guide |
Page 2 has the rules, 2026 numbers and the Aurora Handshake Ledger Check, a log of rival contacts: see the rules and checklist. See also the FTC Act page.
Frequently asked questions
Does antitrust law apply to a small business?
Yes. Sections 1 and 2 have no size floor; only merger filings start at $133.9 million (2026).
Is matching a competitor's price illegal?
Not if you decide alone. The FTC says an agreement can be inferred from unexplained identical terms plus other factors.
Official sources
- Cornell Legal Information Institute: 15 U.S.C. 1 (Sherman Act section 1)
- U.S. Department of Justice: Price fixing, bid rigging and market allocation schemes
- Federal Trade Commission: Price fixing
- Federal Trade Commission: Current HSR thresholds
- Federal Register: Section 8 Clayton Act thresholds, 2026 (91 FR 2134)
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.