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Antitrust Regulation in the US

Antitrust policy is defined as governmental "attempts to make companies act in a competitive manner by breaking up companies that are monopolies, prohibiting mergers that would increase market power,and finding and fining companies that scheme to establish higher prices".

Questions: Briefly explain.

1. Provide the general interventions employed by government to reduce
monopoly and general interventions employed to protect monopoly.

2. Are the antitrust laws in the United States stricter and more
comprehensive compared to those of other industrialized nations?

Solution Preview

1. Provide the general interventions employed by government to reduce monopoly and general interventions employed to protect monopoly.

There are many forms of interventions the government might undertake to reduce monopoly, exclusionary practices, price fixing, market segmentation to avoid competition and cartels. It might fine companies, review mergers and acquisitions to make sure that they are not leading to antitrust behaviour and force a company to break up into different companies or to make a network or coordinating industry product accessible to competitors. For example, Windows is the rails of the internet, regulators in Europe and the US have sougth to make it more accessible to Microsoft ...

Solution Summary

Provides the general interventions employed by government to reduce monopoly and general interventions employed to protect monopoly. Discusses whether the antitrust laws in the United States stricter and more comprehensive compared to those of other industrialized nations?

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