Discuss about monopolization


Assignment:

Monopolization

The main statutes that come to mind is the Sherman Act of 1890 and Federal Trade Commission act of 1914. Both of these antitrust laws. These regulate the conduct and exercises of businesses to promote fair trade for the benefit of the consumer. These acts do not allow businesses to merge in order to form a monopoly. The Sherman Act penalizes businesses who deliberately went after monopolistic power with the intent of market dominance. They are excluded from legislation if they gain monopolistic advantage if it was unintentional or occurred naturally. The intention is to promote fair competition, not punish large companies that have achieved commercial success. I believe the laws do work, the most recent example I can think of is the lawsuit against Qualcomm.

From my understanding they owned patents on their technology that restricted anyone else from reverse engineering it, hence giving them an unfair advantage over all other companies. The courts ruled against Qualcomm and declared the patents illegal. My facts on this are fuzzy but they fit the sake of my argument for government involvement preventing monopolistic powers in a market.

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Microeconomics: Discuss about monopolization
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