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The antitrust investigation against Google by Federal Trade Commission (FTC) followed complaints from competing search engines. They claimed that Google had monopolized the search business and online advertising, making it difficult for them to compete. Other search engine claimed that Google had made it hard for new entrants to find their way into the markets and industries that Google had already established operations. The Federal Trade Commission, which prohibits unfair methods of competition and deceptive practices (Areeda & Hovenkamp, 2011), came in to investigate Google’s antitrust behavior.
Although FTC finally closed the investigation against Google without filling any lawsuits, antitrust behavior comes at a cost to the company. Google had to prove its case that it was not engaging in antitrust practices. This drew company resources into the investigation, resources that could have been directed to other company developments. Most importantly, unfair and illegal business activities often taint company image and consumer loyalty. This could eventually mark a devastating turning point for the company.
Investigation into Google’s antitrust behavior was undertaken within the relevant legal framework. The applicable legal provisions included the Sherman Act (1890), Clayton Act (1914), and Federal Trade Commission Act (1914) (Posner, 2001). Under the Sherman Act, Google was investigated for the monopolization claims by other search engines. In the light of Clayton Act, the company’s exclusive dealings were put on the spot. Finally, the FTC Act encompasses unfair and anticompetitive practices for which Google was being investigated.
Perfect competition, monopoly, and oligopoly market structures influence competition differently (Federico, 2009). These market structures determine whether or not there are barriers to entry into any given market
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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.
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.
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.
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).
Though most of the modern economies exhibit laissez faire principles, but still they abide by the norms of mixed economic system. In the mixed economies, the government checks the power of the private enterprises that may threat the social welfare of the individuals.
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.