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Antitrust Practices and Market Power

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Antitrust Practices and Market Power

Antitrust Practices and Market Power


Introduction…………………………………………………………………………..Page 2

Case for Antitrust Behavior……………………………….……….…..…………….Page 2

Antitrust and Market Power…………..……………………………………………...Page 3

Benefit of Monopoly………………………………………………………….……...Page 4

Conclusion……………………………………………………………………….......Page 4

References………………………………………………………………………........Page 5

Antitrust Practices and Market Power Introduction

First of all, what is antitrust? It was first introduced and advanced by the neoclassical economists. We also call the antitrust law as the "competition laws". The main purpose of developing the antitrust law is to ensure fair competition in an open market economy, thus protect the consumers and maximize social welfare.

Case for Antitrust Behavior

I consider the case of Microsoft as the perfect antitrust law case of the antitrust police. On May 18 1998, United States of Department of Justice initiated the lawsuit towards Microsoft Corporation. Microsoft was accused of becoming a monopoly and engaging in abusive practices contrary to the Sherman Antitrust Act 1890 sections 1 and 2. The accuser alleged that Microsoft was being monopolistic because its product Windows requires bundling IE, Intel, and MSO which are all it’s own products. In other words, people that wants to use Microsoft Windows has to buy all the sub-products in order to make the whole system run normally. The settle of this lawsuit was Microsoft to share its application programming interfaces with third-party companies and appoint a panel of three people who will have full access to Microsoft's systems, records, and source code for five years in order to ensure compliance (United States of America, Plaintiff, v. Microsoft Corporation, Defendant).

Antitrust and Market Power
Market power is the ability...

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