...Running Head: PROTECTION FOR THE CONSUMER IN ANTITRUST LAWS Student Date Abstract There are instances where major manufacturers are protected by antitrust laws. Even though it may appear they are siding with a monopolistic power in the marketplace. On the other hand federal regulation commissions are hard at work in protecting the consumer from unfair treatment. The judgment under which such decisions are made require careful consideration of the intent of the companies involved and how they affect the consumer. Why would the drug maker want to stymie generic competition? Explain. One of the main reasons that a major pharmaceutical company would attempt to stymie generic competition is of course loss of revenues. The generic brand often times provides the same level of benefits but at a much lower costs, therefore the drug maker would lose million of dollar potentially by allowing the generic product equal opportunity. Another reason is that the cost of developing a drug, in addition to advertising and marketing the product oftentimes requires thousands of dollars be invested. In order to recoup the cost of research and design, manufacturing, compliance to federal regulations and the like, it is necessary for the product to be successful. Any competition will hinder potential success of the product. Consider the fact that companies must be successful to continue to have investors willing to resource projects, studies, and funding for research and development...
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...This is where antitrust laws come into play. The three core federal antitrust laws include the Sherman Act (1890), the Federal Trade Commission Act (1914), and the Clayton Act (1914). These three laws were put into place in order to attempt to prevent businesses from having an unfair monopoly in different markets (Blue, 2004).The Federal Trade Commission’s purpose is to promote free and open markets, which provide consumers with several benefits. These benefits include lower prices, higher quality products, because the companies are always competing with each other, greater innovation, and more products and services to choose from (www.ftc.gov). Obviously these acts were put into place long before the Internet was even conceivable, but the same principles can be applied to the Internet markets. Some think that the antitrust laws are enough to regulate the online marketplace, but others feel that more regulations need to be put in place. Virginia State Rep. Bob Goodlatte stated in 2014 that net neutrality regulation usually stifles innovation instead of stimulating it. If there is no innovation, there is no advancement as a society. He goes on to explain that antitrust law prosecutes on a case by case basis while new regulations do not, which can ultimately affect consumers (Goodlatte,...
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...Antitrust law is the law of competition, and it is perhaps the least understood law of all. This article provides an overview and explanation of the essential principals of antitrust law, along with comments on certain recurring themes and recent developments in the voluminous case law by which the courts have struggled to give meaning and practical effect to the principal antitrust statutes. What Is Antitrust Law? Broadly speaking, antitrust laws seek to promote fair competition on the merits and to protect consumers and wronged competitor businesses from anti-competitive business practices — practices undertaken in effort to undermine competitive commercial behavior in a given market or line of commerce. The antitrust laws therefore forbid the wrongful acquisition or preservation of monopoly power, the abuse of monopoly power in order to establish a new monopoly, and concerted restraints of trade (i.e., business practices undertaken by two or more firms that improperly stifle or suppress “competition on the merits” in a given market). They also govern proposed mergers and acquisitions that are sufficiently large to constitute a threat to competition, and they address commercial practices that pose an arguable danger to competition on the merits in a properly defined antitrust market. The Principal Antitrust Offenses. Antitrust law is the law of competition. It is concerned with wrongs committed against competition on the merits in a given line of commerce or market. It is...
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...Who Enforces the Antitrust Laws? The antitrust laws are enforced by both public and private parties. A. Government Enforcement The United States Department of Justice Antitrust Division (“DOJ”) and the Federal Trade Commission (“FTC”) share responsibility for investigation and litigation of cases under the Sherman Act; and, review potentially anticompetitive mergers under the Clayton Act. There is not a formal system by which the DOJ and the FTC divide enforcement responsibilities, the agencies devote resources to particular industries where they have investigated or litigated in the past. Typically the DOJ will review mergers in transportation industries, such as airlines or railroads, as well as the telecommunications industry. The FTC focuses its enforcement responsibility in the oil and gas, pharmaceutical, and health care industries. State attorneys general have authority to enforce federal and state antitrust laws. States investigating a matter arising under the federal antitrust laws will jointly investigate with either the DOJ or the FTC, or may conduct a separate investigation. Individuals or businesses that violate antitrust laws are subject to civil penalties that vary by state per violation for individuals, and vary by state per violation for corporations. In addition, state attorneys general have authority to seek restitution on behalf of the citizens of their states as a result of violations of either the federal or state antitrust laws. Some states allow Attorneys...
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...would try to enter the market in order to compete. This idea is the very basis of free market and capitalist economies. But sometimes there are situations where an individual will have a product or service that is better, cheaper, or quicker than everyone else; so much so that they are the only ones that can effectively provide it. When this occurs, competing businesses and giant government entities will stop at nothing to shut it down. The Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act make up the current US antitrust laws. The antitrust laws are supposed to promote and protect competition. The philosophy behind the laws is that trusts and monopolies will stagnate markets and prevent others from engaging in healthy market competition. A monopoly is defined as a situation in which a single company owns all or nearly all of the market for a given type of product or service. (Investorwords, 2010) Antitrust law legislation started with the Sherman Act that was passed in 1890. The intent of the law was put in place to challenge the unchecked growth of corporations. By 1888, large corporations gained enough market muscle to dominate entire industries. The Sherman Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate trade. This includes agreements among competitors to fix prices, rig bids and allocate consumers. The Act also makes it a crime to monopolize any part of interstate commerce. Criminal prosecution...
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...Business & Antitrust Laws Andrew Paul Danecki DeVry University Small Business & Antitrust Laws It may seem like in the United States that the free-market is a bit cutthroat and everyone is out for their own best interests. The U.S. is best described to have a mostly capitalist economy, and there are a handful of laws to allow growing businesses to have a fair chance to compete against other companies of the similar market. Antitrust laws, protection against monopoly, and laws pertaining to certain mergers are just to name a few. These laws are important, and extremely effective at protecting the small and growing businesses. It was not perfect at first, of course, but has adapted to cover a handful of loopholes. When you think of a monopoly, what normally comes to mind? That good, old classic board game made by Hasbro. That’s what I think of when that word comes in mind. And just like in the game, you try to dominate the board and be the only player left. The same goes for that word in the market world, which actually is illegal since the Sherman Antitrust Law was enacted in 1890. A monopoly is when a single company has solid control over the market with a particular product or service. Congress passed this first antitrust law as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade” (The Antitrust Laws, n.d.). The last two laws were passed shortly later, and all three of these laws still remain...
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...Executive Summary Over the years, Antitrust law has been instrumental in influencing healthcare. Whether we want to believe or not, antitrust law facilitated escorting medicine in as an establishment to take care of our communities and patients. Over the years, hospitals have been the brunt of antitrust litigation. Between 1985 and 1999 hospitals were defendants in 61 percent of 394 medical antitrust disputes that led courts to issue formal opinions (Hammer, Peter, J. and Sage, William, M., 2003). However, these numbers do not support the under published cases, which do not result in a judicial decision. When hospitals are healthcare conglomerates to provide services antitrust views them as just a business. The services provided by hospitals are complex from the services they provide to the technology they use to the human capital necessary to run the operations of the hospital. Unfortunately, antitrust law concentrates on the overall hospitals behavior and not its purpose. Therefore, not-for-profit designation and lifesaving intentions of the hospital consider immaterial to any type of analysis performed by antitrust. Hospitals reserve the right to enter into any joint venture agreement provided each entity is able to achieve its objects autonomous of one another and avoid becoming a dominate player in the market (Hammer and Sage, 2003). For the most part, it will be the market that dictates if the hospital meets the demands and services demanded by the community. The challenge...
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...Antitrust Laws and Competitive Business Practices The fair, balanced and competitive application of U.S. laws as applied to business practices Introduction Several laws have been enacted to provide protection to businesses in our free-trade market. There are times when trading within the free market does not demonstrate the fair, balanced and ethical conduct deserved in competitive business. Trying to compete in a market where practices aren’t regulated deprives businesses the benefits of competition, resulting in higher prices for products and services which in turn affect the economy. Unfair trade practices have been around for as long as trade itself. Unfair practices were under scrutiny as early as 470 B.C. Grain was so vital to Greece’s population that trade laws were enacted. A percentage of grain was taken by the state therefore taxes were applied to anyone not importing directly to Athens. Death applied to anyone restricting imports (http://www.ancient.eu/article/115/). The latter was definitely extreme but regulations now cover a broader range of violations with less severe consequences. The federal government enforces three major antitrust laws. These laws address unfair practices that deprive businesses the benefits of interstate and international trade. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. The Sherman Antitrust...
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...Antitrust Laws for Fair and Competitive Business Laws in the United States that aim to promote fair, balanced, and competitive business practices are known as antitrust laws. According to Bovée & Thill, (2013), “Antitrust laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding” (p.40). Three such laws are The Sherman Act, The Federal Trade Commission Act, and The Clayton Act. These laws (particularly The Sherman Act) provide general guidelines for business practices, but not all of them define specific rules that a business must follow. There are too many situations that may arise for each one to be addressed. Therefore, when a business is accused of breaking an antitrust law, the outcome must be determined by the courts, leaving the results open to subjective interpretation given the circumstances. Because these laws are general outlines for acceptable business practices, there are ways that they can be circumnavigated. Despite these challenges, antitrust laws are effective in reducing, although not eliminating, unethical business practices in the U.S. However their reach does not extend to many aspects of international business. The Sherman Act, passed by Congress in 1890, (“The Antitrust Laws,” n.d.) protects against a restraint of trade. In other words, it restricts individuals or businesses from carrying out a particular policy or agreement that prevents other businesses from competing fairly for a portion of the...
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...Laws are rules that govern the actions people. They give the measures to take when one violates the regulations. Regulations maintain order in the society as most of these rules will not be followed if people are allowed to do as they wish. The criminal laws in relation to health are put to get feedback from victims of a crime.The community uses the feedback to solve problems, identify the needs of the victims and emphasize the need for the community to take part in the implementation of this strategy. The victims’ response assists in the enforcement of law, transparency leadership and job satisfaction (Pager, 2012). The antitrust laws investigate activities carried in hospitals that violate the law. The government has brought about organizational...
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...9-700-082 DEBORA SPAR Forever: De Beers and U.S. Antitrust Law Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F267708 CoursePack code C-788-275379-STU “As a worldwide dealer in enchanting illusions, Disney has nothing on De Beers.” - The Economist1 In 1999, a series of spectacular advertisements adorned the bus-sides and billboards of major American cities. Set against a lush black background, the ads displayed a perfect set of diamond earrings, or a single sparkling solitaire. The lettering, in white, was sparse and to the point: “What better time to celebrate the timelessness of love?” they asked. Or, “What are you waiting for, the year 3000?” Some were even more direct: “This wouldn't exactly be the year,” they noted, “to give her a toaster oven.” Coyly, the ads captured a joint fascination with the new millennium and the enduring allure of diamonds. How better to capture time than with a diamond, they urged. How better to herald eternal love? Indeed. According to analysts, U.S. diamond sales (30% of which occurred during the Christmas season) were expected to surge by more than 10%, hitting a high of over $20 billion for 1999.2 A significant portion of this windfall would flow to De Beers, one of the world’s most successful corporations and the controlling force of the international diamond market. There were many ironies behind De Beers’s millennial campaign, not least of which was that diamonds...
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...Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies.[1] The history of competition law reaches back to the Roman Empire. The business practices of market traders, guilds and governments have always been subject to scrutiny, and sometimes severe sanctions. Since the 20th century, competition law has become global. The two largest and most influential systems of competition regulation are United States antitrust law and European Union competition law. National and regional competition authorities across the world have formed international support and enforcement networks. Modern competition law has historically evolved on a country level to promote and maintain competition in markets principally within the territorial boundaries of nation-states. National competition law usually does not cover activity beyond territorial borders unless it has significant effects at nation-state level.[1] Countries may allow for extraterritorial jurisdiction in competition cases based on so-called effects doctrine.[1][2] The protection of international competition is governed by international competition agreements. In 1945, during the negotiations preceding the adoption of the General Agreement on Tariffs and Trade (GATT) in 1947, limited international competition obligations were proposed within the Charter for an International Trade Organisation. These obligations were not included...
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...Abstract The present paper is an analysis of the Antitrust law in Italy, and its relation with the conflict of interest. In this paper I have given a general introduction to the development of the Antitrust Law in the United States, and consequently in Europe and finally in Italy, and how it regulates the conflict of interest. It is mainly divided in three parts. The first part is an introduction, I have given a definition of what is a Trust, according to the Common Law, then I have explained how the corporate trusts were formed in America, and how and why the Antitrust Legislation was born, and how it has evolved. Therefore, I have discussed about the influence of the American Antitrust Law on the on the European Legislation covering this matter. In the second part, I have discussed about the Italian Antitrust Law, the monopoly of state and task of the Italian Competion Authority. In the third part, I have explained what is a conflict of interest and how the Italian Antitrust Law try to regulate it ( Frattini Law). At the conclusion I have mentioned some cases of conflict of interest in Italy, such as the one of the former Prime Minister Silvio Berlusconi, and how the former has not yet been solved. Keywords Trust, Antitrust Law Competition Authority Conflict of interest Frattini law Introduction Overview on the Antitrust Law in America and Europe The trust，definition Originally, a trust, in the Common law, is a relationship whereby property is held by one party for...
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...statistics shows that Virginia accessed the website for downloading dental coverage forms at least three times during the time frame of the alleged discrimination. The commission determined that this ability of Teddy's to track employees' use of the site was a violation of their anonymity and therefore refused to consider this information. The circuit court did consider this in their decision. Provide three recommendations to the CEO for a way to ensure that employees in the future cannot claim "technical issues" for why they didn't make a complaint. Explain, in your recommendations, the legal consequences to an employee if they do not utilize the complaint mechanism of the sexual harassment policy. Support these recommendations with current case law. To ensure that an employee cannot claim technical issues in the future: 1. The website statistics should be reviewed on a regular basis by the webmaster to verify if there have been periods of downtime on the site. Any downtime is automatically logged by the system and should be reported to the webmaster immediately following any unusual outages such as a power failure or server issues. The webmaster should document any outages in a spreadsheet in case an issue like this would occur. This should be part of the webmasters daily routine, to check and log these items. 2. There should be at least two means for employees to file a complaint. Most companies have a hotline and a webpage. In this day in age there will always be “technical difficulties”...
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...Antitrust Laws After much research and investigations on Antitrust Laws, and reading up on individual cases, I think that overall Antitrust Laws are effective and good for the people. Without the Sherman, Clayton, and Federal Trade Commission Act, there would be a monopoly of every industry, trade, marketing, and services. This would in-turn lead to higher prices for the consumer, lower quality products, less innovation, and poor service. As I mentioned in my opening sentence, I will bring up two individual cases that the DOJ (Department of Justice) is pursuing when it comes to Antitrust Laws. I would like to begin by quoting the DOJ’s mission statement. Mission “The mission of the Antitrust Division is to promote economic competition through enforcing and providing guidance on antitrust laws and principles. Antitrust Laws The goal of the antitrust laws is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace. Competition in a free market benefits American consumers through lower prices, better quality and greater choice. Competition provides businesses the opportunity to compete on price and quality, in an open market and on a level playing field, unhampered by anticompetitive restraints. Competition also tests and hardens American companies at home, the better to succeed abroad. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution...
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