A new tech company has rapidly gained a significant market share by aggressively underpricing its competitors. As a result, several smaller companies have gone out of business. The government is considering intervening to regulate this company's practices. Based on the principles of the Sherman Antitrust Act, what should be the primary concern regarding this company's behavior?

The Sherman Act forbids conduct that restrains trade or attempts to monopolize a market. The company’s aggressive underpricing, which has driven rivals out, could be seen as a deliberate strategy to eliminate competition and gain monopoly power. The Act’s main concern is whether the company is using its market dominance to suppress rivals and create a monopoly, rather than simply competing on price. If the government determines that the pricing tactics are designed to eliminate competitors and control the market, the company would be violating the Sherman Act. An example would be a firm that drops prices below cost to force smaller firms out, then later raises prices once the competition is gone.