Share
Explore BrainMass

Antitrust Policy and Regulatory Competition

Assume you are the owner-manger of an innovative computer software company, and your latest product is so revolutionary and superb it has resulted in your company controlling 98% of the industry in terms of total sales.

a. Should your company be broken up into smaller companies, and/or severely regulated by the government to foster greater competition? Why or why not?
b. Who would gain and who would lose from such government intervention? Explain.

Solution Preview

a. Should your company be broken up into smaller companies, and/or severely regulated by the government to foster greater competition? Why or why not?

This is a matter of promoting and protecting consumer interest by increasing the competition and reducing the monopoly. Antitrust policy has more than a century of honorable history in the United States. In the United States antitrust investigations and enforcement are managed jointly by two agencies, the Antitrust Division of the Justice Department and the Federal Trade Commission (FTC) -- the latter of which is directly concerned with fair trade practices. The concept of antitrust has also gone global. Antitrust laws form part of the competitive environment in a number of countries; the European Union has forged an aggressive antitrust policy -- known there as competition policy.

Antitrust policy has more than a century of honorable history in the United States. In the United States antitrust investigations and ...

Solution Summary

Who would gain and who would lose from such government intervention in 597 words.

$2.19