APPLICABILITY OF THE CLAYTON ACT TO POTENTIAL COMPETITION

This discussion will be confined to the relationship of potential competition to the three important substantive sections of the Clayton Act?Sections 2 (price discrimination), 3 (exclusive dealing), and 7 (mergers). All of these sections use a common language insofar as competitive effect is concerned?"where the effect may be substan tially to lessen competition or tend to create a monopoly." This effect test is said to authorize legal intervention to thwart incipient monopoly or substantial lessening of competition. In other words, the Clayton Act test is designed to inhibit "potential" harm to competition.