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Encyclopedia > Antitrust
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Antitrust laws, or competition laws, are laws which prohibit anti-competitive behavior(monopoly) and unfair business practices. The laws make illegal certain practices deemed to hurt businesses or consumers or both, or generally to violate standards of ethical behavior. Government agencies known as competition regulators regulate antitrust laws, and may also be responsible for regulating related laws dealing with consumer protection. Image File history File links Unbalanced_scales. ... Antitrust is a 2001 film directed by Peter Howitt and written by Howard Franklin. ... Lady Justice or Justitia is a personification of the moral force that underlies the legal system (particularly in Western art). ... Unfair business practices encompass fraud, misrepresentation, and oppressive or unconscionable acts or practices by business, often against consumers and are prohibited by law in many countries. ... An agency is a department of a local or national government responsible for the oversight and administration of a specific function, such as a customs agency or a space agency. ... A competition regulator is a government agency, typically a statutory authority, which regulates competition laws, and may sometimes also regulate consumer protection laws. ... Consumer protection is a form of government regulation which protects the interests of consumers. ...


The term "antitrust" derives from the U.S. law which was originally formulated to combat "business trusts," now more commonly known as cartels. Other countries use the term "competition law." Many countries including most of the Western world have antitrust laws of some form. For example the European Union has its own competition law. The United States Constitution, the supreme law of the land The United States Reports, the official reporter of the Supreme Court of the United States The law of the United States was originally largely derived from the common law of the system of English law, which was in force at... A trust or business trust was a form of business entity used in the late 19th century with intent to create a monopoly. ... A cartel is a group of legally independent producers whose goal it is to fix prices, limit supplies and limit competition. ... The term Western world or the West (also on rare occasions called the Occident) can have multiple meanings depending on its context (i. ... Competition law is one of the areas of authority of the European Union. ...

Contents

Prohibited anti-competitive behavior

Main article: anti-competitive practices

A distinction between single-firm and multi-firm conduct is fundamental to the structure of U.S. antitrust law which, as noted antitrust scholar Phillip Areeda has pointed out "contains a 'basic distinction between concerted and independent action.'"[1] Multi-firm conduct tends to be seen as more likely than single-firm conduct to have an unambiguously negative effect and "is judged more sternly."[2] European competition law also includes a fundamental distinction between single-firm and multi-firm conduct, but a different analytical structure is applied. Anti-competitive practices are business or government practices that prevent and/or reduce competition in a market. ...


In U.S. antitrust law, the Sherman Act addresses single-firm conduct by providing a remedy against "[e]very person who shall monopolize, or attempt to monopolize . . . any part of the trade or commerce among the several States."[3] This prohibition does not condemn monopoly per se but only monopoly that has been acquired or maintained through prohibited conduct: The Sherman Antitrust Act, formally known as the Act of July 2, 1890, ch. ...

Most businessmen don't like their competitors, or for that matter competition. They want to make as much money as possible and getting a monopoly is one way of making a lot of money. That is fine, however, so long as they do not use methods calculated to make consumers worse off in the long run.[4]

With regard to multi-firm conduct, the Sherman Act addresses this by prohibiting "[e]very contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce."[5] Conduct falls within the scope of this prohibition only if some form of agreement or concerted action can be proven.


In considering multi-firm conduct, another distinction is also fundamental: the distinction between conduct that is deemed anticompetitive per se and conduct that may be found to be anticompetitive after a reasoned analysis. There does not appear to be a precedent for per se condemnation of single-firm conduct. Monopoly power alone, without some act of wrongful exclusion or other legally cognizable anticompetitive conduct is not prohibited. To the contrary, as the respected jurist Learned Hand noted, "[t]he successful competitor, having been urged to compete, must not be turned on when he wins."[6] U.S. antitrust law thus does not attack monopoly power obtained through "superior skill, foresight and industry."[7] Billings Learned Hand (January 27, 1872 – August 18, 1961) — usually called simply Learned Hand — was a famed American judge and an avid supporter of free speech, though he is most remembered for applying economic reasoning to American tort law. ...


While the prohibition against multi-firm anticompetitive goes against agreements "in restraint of trade," it is not enough to show that an agreement in some technical way restrains trade. Under U.S. law, at least, the scope of the prohibition is limited to those agreements where the restraint of trade is unreasonable:

Every agreement concerning trade, every regulation of trade, restrains. To bind, to restrain, is of their very essence. The true test of legality is whether the restraint imposed is such as merely regulates and perhaps thereby promotes competition or whether it is such as may suppress or even destroy competition.[8]

Only such obviously anticompetitive conduct as overt price fixing, for example, is placed into this per se category of conduct so clearly detrimental to competition that detailed analysis is unnecessary. Otherwise, antitrust plaintiffs are required to demonstrate, by "the facts peculiar to the business to which the restraint is applied," the nature of the challenged conduct and why it is harmful to competition.[9]


The following types of activity are often subject to antitrust scrutiny.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Geographic market allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

This article needs to be wikified. ... The examples and perspective in this article do not represent a worldwide view. ...

Consumer protection

Consumer protection laws seek to regulate certain aspects of the commercial relationship between consumers and business, such as by requiring minimum standards of product quality, requiring the disclosure of certain details about a product or service (e.g., with regard to cost, or implied warranty), or prescribing financial compensation for product liability. Consumer protection laws are distinct from antitrust. Some consumer protection laws are enforced by the U.S. Federal Trade Commission, which also has antitrust responsibilities. However, many competition agencies -- including the Justice Department antitrust division and the European Commission Directorate General for competition -- lack authority over consumer protection. Consumers refers to individuals or households that purchase and use goods and services generated within the economy. ... Wall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol for the world of business. ... Disclosure means the giving out of information, either voluntarily or to be in compliance with legal regulations or workplace rules. ... In common law jurisdictions, an implied warranty is a contract law term for certain assurances that are presumed to be made in the sale of products or real property, due to the circumstances of the sale. ... Product liability encompasses a number of legal claims that allow an injured party to recover financial compensation from the manufacturer or seller of a product. ...


Rationale

Antitrust laws prohibit agreements in restraint of trade, monopolization and attempted monopolization, anticompetitive mergers and tie-in schemes, and, in some circumstances, price discrimination in the sale of commodities.


Efficiency-oriented economists reject the goal of competition and instead argue that antitrust legislation should be changed to primarily benefit consumers. No Congress or administration has supported this position. These economists largely ignore the political issues that motivated the laws in the first place.


Anticompetitive agreements among competitors, such as price fixing and customer and market allocation agreements, are typical types of restraints of trade proscribed by the antitrust laws. These type of conspiracies are considered pernicious to competition and are generally proscribed outright by the antitrust laws. Resale price maintenance by manufacturers is another form of agreement in restraint of trade. Other agreements that may have an impact on competition are generally evaluated using a balancing test, under which legality depends on the overall effect of the agreement. Resale price maintenance is the practice whereby a manufacturer requires distributors of their product to sell at certain prices, or set a minimum price. ...


Monopolization and attempted monopolization are offenses that may be committed by an individual firm, even without an agreement with any other enterprise. Unreasonable exclusionary practices that serve to entrench or create monopoly power can therefore be unlawful. Allegations of predatory pricing by large companies can be the basis for a monopolization claim, but it is difficult to establish the required elements of proof. Large companies with huge cash reserves and large lines of credit can stifle competition by engaging in predatory pricing; that is, by selling their products and services at a loss for a time, in order to force their smaller competitors out of business. With no competition, they are then free to consolidate control of the industry and charge whatever prices they wish. At this point, there is also little motivation for investing in further technological research, since there are no competitors left to gain an advantage over. The term monopolization refers to an offense under Section 2 of the American Sherman Antitrust Act, passed in 1890. ... The term monopolization refers to an offense under Section 2 of the American Sherman Antitrust Act, passed in 1890. ... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ... Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ... By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ...


High barriers to entry such as large upfront investment, notably named sunk costs, requirements in infrastructure and exclusive agreements with distributors, customers, and wholesalers ensure that it will be difficult for any new competitors to enter the market, and that if any do, the trust will have ample advance warning and time in which to either buy the competitor out, or engage in its own research and return to predatory pricing long enough to force the competitor out of business. In economics and especially in the theory of competition, barriers to entry are obstacles in the path of a firm which wants to enter a given market. ... In economics and in business decision-making, sunk costs are costs that have already been incurred and which cannot be recovered to any significant degree. ... Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ...


From an economics perspective, the relatively recent industrial organization research has focused on construction of microeconomic models that predict and/or explain the prevalence of imperfectly competitive markets and deviations from competitive behavior, partly as a response to the criticisms of antitrust laws and policies by the Chicago School and by members of the law and economics school of thought. Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Industrial organization is the field of economics that studies the behavior of firms, the structure of markets and of their interactions. ... The Chicago School of Economics is a school of thought in economics; it refers to the style of economics practiced at and disseminated from the University of Chicago after 1946. ... Law and economics, or economic analysis of law, is the term usually applied to an approach to legal theory that incorporates methods and ideas borrowed from the discipline of economics. ...


Criticism

There are 2 main kinds of monopolies: de jure monoplies, which are those that are protected from competition by government actions and de facto monopolies which are not protected by law from competition and are simply the only supplier of a good or service. Advocates of laissez-faire capitalism advocate that the only type of monopoly that should be broken up is a coercive monopoly, which is the persistent, exclusive control of a vitally needed resource, good, or service such that the community is at the mercy of the controller. There are no suppliers of the same or substitute goods to which the consumer can turn. In such a monopoly, the monopolist is able to make pricing and production decisions without an eye on competitive market forces and is able to curtail production to price gouge consumers. Laissez-faire advocates argue that such a monopoly can only come about through the use of physical coercion or fraudulent means by the corporation or by government intervention and that there is no case of a coercive monopoly ever existing that was not the result of projectionist intervention. In economics, a government-granted monopoly (also called a de jure monopoly) is a monopoly of a product or service granted by government to an individual or organization/company. ... A de facto monopoly is a monopoly that was not created by government. ... In economics and business ethics, a coercive monopoly is any monopoly maintained by coercion. ... Price gouging is a frequently pejorative reference to a sellers asking a price that is much higher than what is seen as fair under the circumstances. ...


Free market economist Milton Friedman states that he initially agreed with the underlying principles of antitrust laws (breaking up monopolies and oligopolies and promoting more competition), but came to the conclusion that they do more harm than good.[10] A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... Milton Friedman (July 31, 1912 – November 16, 2006) was a prominent American economist and public intellectual. ... In economics, a monopoly (from the Latin word monopolium - Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service. ... An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). ...


Critics also argue that the empirical evidence shows that "predatory pricing" does not work in practice, and is better defeated by a truly free market than by anti-trust laws (see Criticism of the theory of predatory pricing). A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... Predatory pricing is the practice of a dominant firm selling a product at a loss in order to drive some or all competitors out of the market, or create a barrier to entry into the market for potential new competitors. ...


Thomas Sowell argues that even if a superior business drives out a competitor, it doesn't follow that competition has ended: Thomas Sowell Thomas Sowell (born 30 June 1930), is an American economist, political writer, and commentator. ...

In short, the financial demise of a competitor is not the same as getting rid of competition. The courts have long paid lip service to the distinction that economists make between competition — a set of economic conditions — and existing competitors, though it is hard to see how much difference that has made in judicial decisions. Too often, it seems, if you have hurt competitors, then you have hurt competition, as far as the judges are concerned.[11]

Alan Greenspan argues that the very existence of antitrust laws discourages businessmen from some activities that might be socially useful out of fear that their business actions will be determined illegal and dismantled by government. In his essay entitled Antitrust, he says: "No one will ever know what new products, processes, machines, and cost-saving mergers failed to come into existence, killed by the Sherman Act before they were born. No one can ever compute the price that all of us have paid for that Act which, by inducing less effective use of capital, has kept our standard of living lower than would otherwise have been possible." Those, like Greenspan, who oppose antitrust tend not to support competition as an end in itself but for its results --low prices. As long as a monopoly is not a coercive monopoly where a firm is securely insulated from potential competition, it is argued that the firm must keep prices low in order to discourage competition from arising. Hence, legal action is uncalled for, and wrongly harms the firm and consumers.[12] Alan Greenspan (born March 6, 1926) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ... In economics and business ethics, a coercive monopoly is any monopoly maintained by coercion. ...


Proponents of the Chicago school of economics are generally suspicious (and critical) of government intervention in the economy, including antitrust laws and competition policies. Judge Robert Bork's writings on antitrust law, along with those of Richard Posner and other law and economics thinkers, were heavily influential in causing a shift in the U.S. Supreme Court's approach to antitrust laws since the 1970s. The Chicago School of Economics is a school of thought in economics; it refers to the style of economics practiced at and disseminated from the University of Chicago after 1946. ... Robert Bork Robert Heron Bork (born March 1, 1927 in Pittsburgh, Pennsylvania) is a conservative American legal scholar who advocates the judicial philosophy of originalism. ... Richard A. Posner Richard Allen Posner (born January 11, 1939 in New York City) is currently a judge on the United States Court of Appeals for the Seventh Circuit. ... Law and economics, or economic analysis of law, is the term usually applied to an approach to legal theory that incorporates methods and ideas borrowed from the discipline of economics. ...


Thomas DiLorenzo found that the "trusts" of the late 19th century were dropping their prices faster than the rest of the economy, and holds that they were not monopolists at all.[13]


History of antitrust in the United States

The antitrust laws comprise what the Supreme Court calls a "charter of freedom," designed to protect the core republican values regarding free enterprise in America. The main goal was never to protect consumers, but to prohibit the use of power to control the marketplace. Although "trust" had a technical legal meaning, the word was commonly used to denote big business, especially a large, growing manufacturing conglomerate of the sort that suddenly emerged in great numbers in the 1880s and 1890s. Indeed, at this time hundreds of small short-line railroads were being bought up and consolidated into giant systems. (Separate laws and policies emerged regarding railroads and financial concerns such as banks and insurance companies.) Republicanism required free competition and the opportunity for Americans to build their own businesses without being forced to sell out to an economic colossus. As Senator John Sherman put it, "If we will not endure a king as a political power we should not endure a king over the production, transportation, and sale of any of the necessaries of life." The Sherman Antitrust Act passed Congress almost unanimously in 1890 and remains the core of antitrust policy. The Act makes it illegal to try to restrain trade, or to form a monopoly. It gives the Justice Department the mandate to go to federal court for orders to stop illegal behavior or to impose remedies. John Sherman John Sherman (May 10, 1823–October 22, 1900) was a Senator from Ohio and a member of the United States Cabinet. ... The Sherman Antitrust Act, formally known as the Act of July 2, 1890, ch. ... DOJ headquarters in Washington, D.C. Justice Department redirects here. ...


Business consolidation roared along in the 1890s and 1900s. As a result the Progressive Era put anti-trust high on the agenda. President Theodore Roosevelt sued 45 companies under the Sherman Act, while William Howard Taft sued 75. In 1902, Roosevelt stopped the formation of the Northern Securities Company which threatened to monopolize transportation in the northwest. Theodore (Teddy) Roosevelt, Jr. ... William Howard Taft (September 15, 1857 – March 8, 1930) was an American politician, the 27th President of the United States, the 10th Chief Justice of the United States, a leader of the progressive conservative wing of the Republican Party in the early 20th century, a pioneer in international arbitration, and... Northern Securities Company was a large railroad conglomerate formed in 1901 by financiers J.P. Morgan, James J. Hill, J. D. Rockefeller, E. H. Harriman and others. ...


The most notorious of the trusts was the Standard Oil Company; John D. Rockefeller in the 1870s and 1880s had used economic threats against competitors and secret rebate deals with railroads to build what was called a monopoly in the oil business, although in fact he always had nominal competition. In 1911 the Supreme Court agreed that in recent years (1900-1904) Standard had violated the Sherman Act. It broke the monopoly into three dozen separate companies that competed with one another, including Standard Oil of New Jersey (later known as Exxon and now ExxonMobil), Standard Oil of Indiana (Amoco), Standard Oil Company of New York (Mobil, again, later merged with Exxon to form ExxonMobil), of California (Chevron), and so on. In approving the breakup the Supreme Court added the "rule of reason:" not all big companies, and not all monopolies, are evil, and the courts are to make that decision (not the executive branch). To be harmful a trust had to somehow damage the economic environment of its competitors. Standard Oil (Esso) was a predominant integrated oil producing, transporting, refining, and marketing company. ... John Davison Rockefeller, Sr. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, a suburb of Dallas, USA, is the largest publicly traded integrated oil and gas company in the world, formed on November 30, 1999, by the merger of Exxon and Mobil. ... The American Oil Company, or Amoco, was a global chemical and oil company, founded in Baltimore in 1910 and incorporated in 1922 by Louis Blaustein and his son Jacob, but now part of BP. The firms early innovations include the gasoline tanker truck and the drive-through filling station. ... Mobil gas station in the Loisaida section of the East Village of New York City Mobil was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. ... Chevron may refer to: Chevron, a V-shaped pattern seen in military or police insigna, heraldry, flag design, and architectural frets Chevron, a series of bones on the underside of the tail of reptiles Chevron Corporation, a petrochemical company Chevron Cars, an advertising campaign of the Chevron Corporation including stylized...


Roosevelt for his part distinguished between "good trusts" and bad ones allegedly on the basis of their contribution to the economy. Such arbitrariness gives business leaders reason to believe that they will be prosecuted if they do not cultivate political support for their business.


United States Steel Corporation, which was much larger than Standard Oil, won its antitrust suit in 1920 despite never having delivered the benefits to consumers that Standard Oil did. In fact it lobbied for tariff protection that reduced competition and so contending that it was one of the "good trusts" that benefitted the economy is somewhat doubtful. Likewise International Harvester survived its court test, while other trusts were broken up in tobacco, meatpacking, and bathtub fixtures. Over the years hundreds of executives of competing companies who met together illegally to fix prices went to federal prison. The United States Steel Corporation NYSE: X is an integrated steel producer with major production operations in the United States and Central Europe. ... Navistar (formerly International Harvester) started in Chicago, United States, which produced agricultural machinery, construction equipment and vehicles. ...


One problem under the Sherman Act was that businessmen did not know what was allowed or not. Therefore in 1914 Congress passed the Clayton Act which prohibited specific business actions (such as price discrimination, tie-in sales, exclusive dealership agreements, mergers, acquisitions, and interlocking corporate directorships) if they substantially lessened competition. At the same time Congress established the Federal Trade Commission (FTC), whose legal and business experts could force business to agree to "consent decrees" which provided an alternative mechanism to police anti-trust. However the law is still very unclear. For instance there is no clear definition of what constitutes a "market." In the words of Isabel Paterson "As freak legislation, the antitrust laws stand alone. Nobody knows what it is they forbid." In the United States, the Clayton Antitrust Act of 1914 was enacted to remedy perceived deficiencies in antitrust law created under the Sherman Antitrust Act of 1890. ... FTC headquarters, Washington, D.C. The Federal Trade Commission (or FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. ... Isabel Bowler Paterson (January 22, 1886, Manitoulin Island Canada -- 1961) was a journalist, literary critic, author, and libertarian advocate. ...


America adjusted to bigness after 1910. Henry Ford dominated auto manufacturing, but he built millions of cheap cars that put America on wheels, and at the same time lowered prices, raised wages, and promoted efficiency. Ford became as much of a popular hero as Rockefeller had been a villain. Welfare capitalism made large companies an attractive place to work; new career paths opened up in middle management; local suppliers discovered that big corporations were big purchasers. Talk of trust busting faded away. In the 1920s and 1930s the threat to the free enterprise system seemed to come from unrestricted cutthroat competition, which drove down prices and profits and made for inefficiency. Under the leadership of Herbert Hoover, the government in the 1920s promoted business cooperation, fostered the creation of self-policing trade associations, and made the FTC an ally of respectable business. This reduced competition and may have helped lead to the Great Depression. During the New Deal, likewise, attempts were made to stop cutthroat competition, attempts which appeared very similar to cartelisation which would be illegal under antitrust laws if attempted by someone other than government. The National Recovery Act (NRA) was a short-lived program in 1933-35 designed to strengthen trade associations, and raise prices, profits and wages at the same time. The Robinson-Patman Act of 1936 sought to protect local retailers against the onslaught of the more efficient chain stores, by making it illegal to discount prices. To control big business the New Deal policy makers preferred federal and state regulation-- controlling the rates and telephone services provided by American Telephone & Telegraph Company (AT&T), for example--and by building up countervailing power in the form of labor unions. Henry Ford (1919) Henry Ford (July 30, 1863 – April 7, 1947) was the founder of the Ford Motor Company and father of modern assembly lines used in mass production. ... Cut-throat competition, also known as destructive or ruinous competition, refers to situations when competition results in prices that do not chronically or for extended periods of time cover costs of production, particularly fixed costs. ... Herbert Clark Hoover, (August 10, 1874 – October 20, 1964), the 31st President of the United States (1929–1933), was a world-famous mining engineer and humanitarian administrator. ... The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... Cut-throat competition, also known as destructive or ruinous competition, refers to situations when competition results in prices that do not chronically or for extended periods of time cover costs of production, particularly fixed costs. ... -1... The Robinson-Patman Act of 1936 (or Anti-Price Discrimination Act, ) is a United States federal law that outlawed anticompetitive practices by producers in which chain stores were allowed to purchase goods at lower prices than other retailers. ... AT&T (NYSE: T) is the largest provider of both local and long distance telephone services, wireless service under the brand Cingular Wireless, and DSL Internet access in the United States. ...


By the 1970s fears of "cutthroat" competition had been displaced by confidence that a fully competitive marketplace produced fair returns to everyone. The fear was that monopoly made for higher prices, less production, inefficiency and less prosperity for all. As unions faded in strength, the government paid much more attention to the damages that unfair competition could cause to consumers, especially in terms of higher prices, poorer service, and restricted choice. However there is no evidence that antitrust prosecutions were or are dictated by the damage to consumers. It is not the policy of the antitrust division to estimate the damage to consumers and then prioritise prosecutions on the basis of that damage. In 1982 the Reagan administration used the Sherman Act to break up AT&T into one long-distance company and seven regional "Baby Bells", arguing that competition should replace monopoly for the benefit of consumers and the economy as a whole. The pace of business takeovers quickened in the 1990s, but whenever one large corporation sought to acquire another it first had to obtain the approval of either the FTC or the Justice Department. Often the government demanded that certain subsidiaries be sold, so that the new company would not monopolize a particular geographical market. In 1999 a coalition of 19 states and the federal Justice Department sued Microsoft. A highly publicized trial found that Microsoft had strong-armed many companies in an attempt to prevent competition from the Netscape browser. In 2000 the trial court ordered Microsoft split in two to punish it, and prevent it from future misbehavior. In his defense, CEO Bill Gates argued that Microsoft always worked on behalf of the consumer, and that splitting the company would diminish efficiency and slow the pace of software development. AT&T (NYSE: T) is the largest provider of both local and long distance telephone services, wireless service under the brand Cingular Wireless, and DSL Internet access in the United States. ... Map of the original and current companies. ... Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... Netscape Communications Corporation (commonly known as Netscape), was an American computer services company, best known for its web browser. ... William Henry Gates III (born October 28, 1955) is an American entrepreneur and the co-founder, chairman, former chief software architect, and former CEO of Microsoft, the worlds largest software company. ...


Exemptions to Antitrust Laws

Labor unions A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers...


Professional baseball The sport of baseball has several professional leagues throughout the world; that is, leagues where the players are paid to play. ...


Agricultural Cooperatives


Insurance Insurance is allowed limited antitrust exemptions as provided by the McCarran-Ferguson Act, 15 USC 1011, et sec. Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. ... The McCarran-Ferguson Act, 15 U.S.C. 20, is a United States federal law. ...


See also

The AFL-NFL Merger of 1970 involved the merger of the two major professional American football leagues in the United States during the time: the National Football League (NFL) and the American Football League (AFL). ... This article needs to be wikified. ... The Chicago School of Economics is a school of thought in economics; it refers to the style of economics practiced at and disseminated from the University of Chicago after 1946. ... Andrew Lintner Harris (also known as The Farmer-Statesman) (November 17, 1835 – September 13, 1915) was one of the heroes of the Battle of Gettysburg and the last Civil War general to serve as a governor in the U.S., serving as the 44th governor of Ohio. ... In economics and business ethics, a coercive monopoly is any monopoly maintained by coercion. ... In economics, the concentration ratio of an industry is used as an indicator of the relative size of firms in relation to the industry as a whole. ... Consumer protection is a form of government regulation which protects the interests of consumers. ... A competition regulator is a government agency, typically a statutory authority, which regulates competition laws, and may sometimes also regulate consumer protection laws. ... In economics, a contestable market is a market in which competitive pricing can be observed, even though there may be only one firm serving the market, so that it would normally be classed as a monopoly. ... // Bernard Ebbers Bernard John Ebbers Bernard John Ebbers, also known as Bernie Ebbers is a Canadian-born businessman. ... In 2002, armed with the Sherman Antitrust Act, the US Department of Justice began a probe in the the activities of DRAM manufacturers. ... A true duopoly is a form of oligopoly where only two producers exist in a market. ... Economic regulators are usually the agencies established by central government for the control of or intervention in the operation of markets, according to public interest principles and criteria. ... Competition law is one of the areas of authority of the European Union. ... FTC headquarters, Washington, D.C. The Federal Trade Commission (or FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. ... In economics, a government-granted monopoly (also called a de jure monopoly) is a form of coercive monopoly in a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation... scheiiiißßßßßee!!!!!!!!!!!!!regional, local; for levels below the national, it is a local monopoly. ... In economics, the Herfindahl index, also known as Herfindahl-Hirschman Index or HHI, is a measure of the size of firms in relationship to the industry and an indicator of the amount of competition among them. ... The Hart-Scott-Rodino Antitrust Improvements Act of 1976, Pub. ... Law and economics, or economic analysis of law, is the term usually applied to an approach to legal theory that incorporates methods and ideas borrowed from the discipline of economics. ... A Limit Price is the price set by a monopolist to discourage economic entry into a market. ... A market anomaly (or inefficiency) is a price distortion on a financial market. ... In economics, market concentration is a function of the number of firms and their respective shares of the total production (alternatively, total capacity or total reserves) in a market. ... Market dominance strategies are a type of marketing strategy that classifies firms based on their market share or dominance of an industry. ... This article or section does not adequately cite its references or sources. ... In economics, market power is the ability of a firm to alter the market price of a good or service. ... Market share, in strategic management and marketing, is the percentage or proportion of the total available market or market segment that is being serviced by a company. ... Merger redirects here. ... Merger Control refers to the procedure of reviewing mergers and acquisitions under antitrust / competition law. ... In economics, a monopoly (from the Latin word monopolium - Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service. ... In economics, a monopsony is a market form with only one buyer, called monopsonist, facing many sellers. ... The term monopolization refers to an offense under Section 2 of the American Sherman Antitrust Act, passed in 1890. ... This article is about political philosophy of Ordoliberalism. ... In intellectual property (IP) law, a patent pool is a consortium of at least two companies agreeing to cross-license patents and other IP rights relating to a particular technology. ... The examples and perspective in this article do not represent a worldwide view. ... Product bundling is a marketing strategy that involves offering several products for sale as one combined product. ... Resale price maintenance is the practice whereby a manufacturer requires distributors of their product to sell at certain prices, or set a minimum price. ... The Robinson-Patman Act of 1936 (or Anti-Price Discrimination Act, ) is a United States federal law that outlawed anticompetitive practices by producers in which chain stores were allowed to purchase goods at lower prices than other retailers. ... In anti-trust law, before deciding whether companies have significant market power which would justify government intervention, the test of Small but Significant and Non-transitory Increase in Price is used to define the relevant market in a consistent way. ... The Trade Practices Act 1974 is an act of the Parliament of Australia. ... The term trust has several meanings: In sociology, trust is willing acceptance of one persons power to affect another. ... Trust-busting refers to government activities designed to break up trusts or monopolies. ... Antitrust is also the name for a movie, see Antitrust (movie) Antitrust or competition laws legislate against trade practices that undermine competitiveness or are considered to be unfair. ... The U.S. Industrial Commission (1898-1902) was appointed by President William McKinley to investigate railroad pricing policy, industrial concentration, and the impact of immigration on labor markets, and make recommendations to the President and Congress. ... Holding Section 7 of the Clayton Act, which prohibits a corporation from aquiring another company when it results in a substantial reduction in competition, applies to competition between different industries for the same end user market. ... Holding Manufacturing is not considered an area that can be regulated by Congress pursuant to the commerce clause. ... United States v. ...

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Alan Greenspan (born March 6, 1926) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ... American Bar Associations Washington, DC office The American Bar Association (ABA) is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. ...

References

  1. ^ 6 P. Areeda, Antitrust Law § 1436c (1986).
  2. ^ Copperweld Corp. v. Independence Tube Corp., 467 U.S. 752, 768 (1984).
  3. ^ 15 U.S.C.§ 2.
  4. ^ Olympia Equipment Leasing Co. v. Western Union Telegraph Co., 797 F.2d 370, 379 (7th Cir. 1986) (Posner, J.).
  5. ^ 15 U.S.C.§ 1.
  6. ^ United States v. Aluminum Corp. of America (“Alcoa”), 148 F.2d 416, 430 (1945) (L. Hand, J.).
  7. ^ Id.
  8. ^ Board of Trade of the City of Chicago v. United States, 246 U.S. 231, 244 (1918) ("Chicago Board of Trade").
  9. ^ Chicago Board of Trade, 246 U.S. at 244.
  10. ^ The Business Community's Suicidal Impulse by Milton Friedman A criticism of antitrust laws and cases by the Nobel economist
  11. ^ "KeepMedia: Purchase Item", Forbes. Retrieved on 2005-12-23.
  12. ^ Memo, 6-12-98; Antitrust by Alan Greenspan. Retrieved on 2005-12-23.
  13. ^ DiLorenzo, Thomas J. "The Origins of Antitrust: An Interest-Group Perspective," International Review of Law and Economics (Fall 1985): 73-90.

2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... December 23 is the 357th day of the year in the Gregorian calendar (358th in leap years). ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... December 23 is the 357th day of the year in the Gregorian calendar (358th in leap years). ...

Further reading

  • Areeda, Phillip and Louis Kaplow, Antitrust Analysis: Problems, Texts, Cases (1997)
  • Oliver Black. Conceptual Foundations of Antitrust (2005)
  • Bork, Robert H. (1993). The Antitrust Paradox. New York: Free Press. ISBN 0-02-904456-1.
  • Antonio Cucinotta, ed. Post-Chicago Developments in Antitrust Law (2003)
  • David S Evans. Microsoft, Antitrust and the New Economy: Selected Essays (2002)
  • Herbert Hovenkamp. "Chicago and Its Alternatives" Duke Law Journal, Vol. 1986, No. 6 (Dec., 1986) , pp. 1014-1029
  • John E Kwoka and Lawrence J White, eds. The Antitrust Revolution: Economics, Competition, and Policy (2003)
  • Richard Posner, Antitrust Law: An Economic Perspective. (1976).

Historical

  • Louis Brandeis, The Curse of Bigness (1934).
  • Alfred Chandler, The Visible Hand: The Managerial Revolution in American Business (1977).
  • J. Dirlam & A. Kahn, Fair Competition: The Law and Economics of Antitrust Policy (1954).
  • Joseph Dorfman, The Economic Mind in American Civilization 1865-1918 (1949).
  • Freyer, Tony. Regulating Big Business: Antitrust in Great Britain and America, 1880-1990.(1992)
  • Walter Hamilton & I. Till, Antitrust in Action. Washington: U.S. Government Printing Office, 1940.
  • Richard Hofstadter, "What Ever Happened to the Antitrust Movement?" in The Paranoid Style in American Politics and Other Essays. (1965).
  • W. Letwin, Law and Economic Policy in America: The Evolution of the Sherman Antitrust Act (1965).
  • Peritz, Rudolph J. R. "Three Visions of Managed Competition, 1920-1950," Antitrust Bulletin, Spring 1994 39 #1 273-287.
  • Edwin Rozwenc, ed. Roosevelt, Wilson and The Trusts. (1950), readings
  • George Stigler, The Organization of Industry (1968).
  • George Stocking & M. Watkins, Monopoly and Free Enterprise. ( 1951).
  • Hans Thorelli, The Federal Antitrust Policy: Origination of an American Tradition (1955).

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Antitrust - Wex (314 words)
To prevent trusts from creating restraints on trade or commerce and reducing competition, Congress passed the Sherman Antitrust Act in 1890.
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