StudentShare solutions
Triangle menu

Antitrust Practices and Market Power - Essay Example

Nobody downloaded yet

Extract of sample
Antitrust Practices and Market Power

Antitrust laws, often known as ‘competition laws’ are norms introduced by the government of U.S. to prevent the consumers from the negativities of rapacious pricing introduced by the potential business giants in market and thereby help in promoting free trading activities in the open economies. This essay will concentrate in the recent antitrust investigation against the giant web searcher Google. The Federal Trading Commission had introduced the antitrust inquiry against Google in October 2012 and recommended the government to completely sue the business giant. Such laws are generally incorporated over firms that exhibit monopolistic or oligopolistic characteristic features. In short, the imperfectly competitive market structures encourage the malpractices and bureaucracies of potential firms in almost all industrial segments. Antitrust investigation is the best combat against such ill practices. The issue of antitrust investigation against Google encompasses the online business industry (Lohr, 2012). Reason for Antitrust investigation against Google The Federal Trading Commission (FTC) augmented pressure in Google for an antitrust investigation and decided to sue the giant web searcher. The company was claimed to manipulate its search results in a way that would facilitate its own products and make the same difficult for its potential rivals in the industry. However, the officials of the company had announced to answer and prove its innocence against any charges imposed by the regulators. FTC has equipped itself with a team which would drag Google to the court if required. Beth A. Wilkinson was the legislator appointed by FTC to fight against Google in the court. The European Union Commissioner have also claimed that Google is monopolizing the online industry and forcing other specialized search engines and advertizes to foreclose their businesses. Google has also been accused for manipulating its e-commerce services results. It is also found that Google introduces lobbying affairs with smart phone makers and force them not to remove the Google android operating systems from their manufactured phones. The American Antitrust Institute (AAI) has also agreed to the claims of FTC made against Google. This case is a typical case of antitrust exploration that has been prerequisite because the firm concerned (Google) simply enjoys oligopolistic or monopolistic power in the digital market places (Cleland, 2013). Pecuniary and Non Pecuniary Cost due to Imperfect Competition The monopolistic and oligopolistic firms exist in markets where perfect competition does not exist. The firms in this type of a market structure are not ‘price takers’ but are ‘price makers’. There are a large number of buyers but only few sellers in such market structures. Thus, the existing producers in an imperfect market have power to discriminate the buyers both in social and economic grounds. The demand curve faced by these types of firms is downward sloping in nature (W. Shepherd & J. Shepherd, 2003). Figure 1: AR and MR Curve of a Monopoly or Oligopoly Producer AR, MR Price or Average Revenue Curve (P or AR) Quantity Marginal Revenue Curve (MR) Antitrust behavior of the firms causes many economic and noneconomic costs. Imperfect competition in the market is responsible for inefficient allocation of resources, the monopolistic and the oligopolistic sellers often hoard their products to artificially increase the prices. Price discrimination is also one of the mal practices ...Show more


Antitrust Practices and Market Power Name of the Student University Date Antitrust Investigation against Google Most of the contemporary economies in the modern world follow free market principles, that allow aggregate demand and supply thresholds manipulate the equilibrium price levels…
Author : vonruedengiovan
Antitrust Practices and Market Power essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Antitrust Practices and Market Power"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Questions in Antitrust law. Case examples
Antitrust laws are body of governing principles that seek to enhance favorable business environment through promoting fair competition as well as protecting consumers in addition to wronged competitor businesses against anti-competitive practices within the business environment.
19 pages (4750 words) Essay
Antitrust Law Case
Antitrust laws can be defined as acts adopted by congress to ban or hinder business practices considered being monopolistic or restraining interstate commerce. A clear example is the Sherman antitrust Act of 1890 between states or foreign countries.
3 pages (750 words) Essay
Antitrust Law Essay
Another aspect is supervision of mergers as well as acquisitions of big companies and this includes some joint ventures. Transactions that are regarded as a threat to the competitive procedure can be banned or recommended subjects to “remedies” for instance an requirement to divest part of combined business or to provide licenses.
3 pages (750 words) Essay
Antitrust Practices and Market Power
The laws of antitrust prevent anticompetitive business practices; they promote and foster competition within the market. In 1890, Americans benefitted from the first antitrust law through the Sherman Act. This act played a major role in combating the business trust of the United States economy (Utton, 2003).
3 pages (750 words) Essay
Market structure, conduct and performance: Violations of antitrust laws
Market structure, conduct and performance: Violations of antitrust laws BY YOU YOUR SCHOOL INFO HERE DATE HERE Market structure, conduct and performance Introduction In 2012, the United States of America filed a lawsuit against Apple, Inc., Harper Collins, and several other organisations indicating a violation of antitrust laws.
6 pages (1500 words) Essay
Market Power (Business Enviroment Module)
According to Vickers (2005) competition is the key in market economy. But this competition can also increase the use and abuse of power by many organizations. Over the years, US has seen much
4 pages (1000 words) Essay
Antitrust practices and market power
Additionally, the website businesses competing with Google have raised concern over their unfair treatment in search rankings. More to this, is the fact that the impact
2 pages (500 words) Essay
Antitrust Practices
F.T.C investigators were looking for a wide range of Google business malpractices like displaying results that favor Google commerce services
2 pages (500 words) Essay
Antitrust Practices and Market Power
The idea is to minimize or alleviate antitrust or anticompetitive behavior among firms (Posner, 2001). A recent antitrust investigation case involved Google, where it was accused
2 pages (500 words) Essay
Antitrust Practices and Market Power
Its Intel-based computers contained the software, and they came hand in hand with the computer. The issue was whether it was right to present the two items as a pair without
2 pages (500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us