Antitrust Practice and Market Power

Antitrust Practices and Market Power

government promulgates antitrust law to prohibit unfair business practices in the United States and enhancing competitions within the U.S. marketplace. Several business practices are considered illegal under the antitrust law and these practices include illegal monopoly, price fixing, illegally discouraging competition, and bid rigging. For example, Sherman Antitrust Act of 1890 prohibits monopolizing the interstate commerce, bid rigging, and price fixing. Moreover, The Clayton Act of 1914 also prohibits all form of merger and acquisition that could restrict competition. Companies considered violating the antitrust law may be subjected to fines and the officials may face jail term.

Why were firm(s) being Investigated for the Antitrust Behavior?

The government can investigate firms for antitrust behaviors if the government suspects that a firm is carrying out the antitrust business behaviors that could violate antitrust law. An issue of Microsoft vs. Department of...
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