Antitrust Practices - Essay Example

ANTITRUST LAWS F.T .C investigating Antitrust against Google Reason for Antitrust investigation The Federal Trade Commission raised the ante in its antitrust conformation with Google. This commission prepared that the government was to sue the search giant. The main focus for F.T. C was whether Google manipulated search results in a quest to favor their own products. This made it quite difficult for other competitors and their products to get a fair share of representation and marketing on a results page. F.T.

C investigators were looking for a wide range of Google business malpractices like displaying results that favor Google commerce services like Google shops, Google places. This is what F.T.C termed as “prefrencing”.The pecuniary and non pecuniary cost that is associated with Google (firms that has power in the market). The pecuniary cost and the non pecuniary cost that was associated with this case we are concerned about the effect on innovation,consumer and investment (Hylton, (2003). It took the commission about a yard to come to the conclusion after carrying out a myriad of investigations that were brought forward by google competitors.

The antitrust experts said they would likely push for more sweeping obligations on Google corporate demeanor in the future so that it will not use its powerful position in internet o foster unfair advantage in other business thus giving stifle competition. The cost at which the government may try to enforce the principle of oligopoly in fields as fast moving as internet search, smart phones and online commerce will be quite challenging. The F.T. C was adjudicating for the broad principle so that there would be an agreement not to discriminate in favor its products and services over smaller competitors.

The case with google is similar to that of Microsoft. It drew complaints from antitrust regulators and rivaling companies as it expanded its business beyond its dominant product and search advertising. Google is known to have bellicosely gained from its partnership with other fields that include Smartphone software and online commerce. As Google expands its empire, it takes on new competitors and brings formidable forces this making its rivals to suffer. However, Google has taken a stand that is improving its products and services in order to benefit the customers and the economy (Posner, 2001).

The Antitrust laws help to serve as the ultimate protector from the competitive process under the free market economy. With this process, it will promote competitive prices and customer choice so that the whole society will benefit from all the possible allocation of resources. The antitrust laws help to ensure open and free markets and prevents conducts that impede competition. Based on the case of F.T.C investigating Google, It is clear that Google violated the Clayton Act, 15 U.S.C 12 et. Seq. Which seeks to expands of the Sherman Act that address anticompetitive problems in their incipiency (Shenefield, 2001). The F.T.

C was trying to determine whether the line of commerce or any activity to the effect of such acquisition that may be substantial to lessen competition in a bid to create monopoly. This is evident when F.T.C tried to investigate Google and its business with NexTag. It claims that its traffic with Google search engine and it claims that Google is manipulating its search results and it is harming it as a commerce competitor. Another common refrain from those who filed a case against unfair competition in regards towards the amount of data that it uses the quality of its targeting a barrier to competition thus protecting unassiable monopoly.

Despite the fact that people do not like monopoly, it has its own advantages that the society can benefit. Monopolies can use the profit they get to fund high cost capital investing so that they can improve the products they provide at a lower cost in the long run. As monopolistic companies continue to increase output this will lead to a decrease in cost production and this will be passed on to the consumers in the form of lower prices (Lele, 2007). A firm like Mc’ Donlads has become a monopoly in the food industry through being dynamic and sufficient.

Thus, monopoly is a sign of success as it gives the people the best type of products and services. RefrencesHylton, K. N. (2003). Antitrust law: Economic theory and common law. New York: Cambridge University Press.Posner, R. A. (2001). Antitrust law. Chicago, Ill. [u.a.: Univ. of Chicago Press.Lele, M. M. (2007). Monopoly rules: How to find, capture and control the worlds most lucrative markets in any business. London: Kogan Page.Shenefield, J. H., & Stelzer, I. M. (2001). The antitrust laws: A primer.

Washington, D.C: AEI Press.