The ruling of the court barred Microsoft from bundling the IE with Windows on the ground that the Microsoft action attempted to eliminate the Netscape from competitive landscape. (Lenard, 2000)
Rather, the company was trying to improve the consumer welfare by charging low or give away price for its software. (Reddy, David, and Albert, 2000)
One of the negative effects of monopoly is that it discourages consumers to make a choice from wide variety of products thereby reducing the aggregate welfare of consumers. (Stigler, 2013)
In 1990s, the Department of Justice investigated Microsoft for various antitrust allegations, and the government accused the Microsoft of using its monopoly power of its PC (personal computer) operating system to harm competitors and exclude rivals. (Stucke, 2013)
Microsoft was investigated specifically under the Sherman Antitrust Act, particularly the first two sections which state that restraining trade and monopolizing trade internationally or between U.S. states is illegal (Haw, 2011, p
The company had established something of a natural monopoly of the software market (which is distinct from a government monopoly), and was leveraging its considerable market power to systematically eliminate its competition. It is legal to establish a monopoly in any given industry; yet it is illegal to "use certain practices that have no commercial justification in an effort to further entrench the monopoly" (Hazlett et al
S. Justice Department has stepped forward to actively stall such merger (Grunes, 2011)
monopoly was causing artificially high telephone charges and was acting as a strain on the market place. The breakup of the massive AT & T corporation into the Baby Bells seemed to satisfy the consumer advocates and government lawyers who had argued for the breakup for many years and developments in the telecommunications' industry such as the internet and cell phones caused a reshuffling of power (King, 2002)
resulted in consumers and businesses paying long distance rates that were far less than they were prior to the AT & T. breakup (Madden, 2003)
was again in position where critics were again clamoring for another breakup. A recent development has brought the issue of AT & T's influence and power in the telecommunication industry to the forefront once again (MCI Telecommunications v. American Telephone & Telegraph, 1994)
S. Congress and, for the most part, successfully withstood all challenges to its position in the market (United States v. American Tel. & Tel. Co., 1983)
Justice Department has stepped forward to actively stall such merger (Grunes, 2011). The Justice Department argues that such merger or takeover by AT&T would "substantially lessen competition" in the wireless industry and that such action should be blocked (United States v. AT&T INC., 2011)
According to the McKenzie-Willamette, Peacehealth cut its rates for Regence, in return for the removal of McKenzie-Willamette from Regence's preferred provider list. Similarly, Peacehealth's discounted rates for HMO services resulted in the removal of McKenzie-Willamette from Providence's list of preferred healthcare providers (Harwood 2004)
The company, and five of the nation's renowned publishers -- Simon & Schuster, Penguin, Macmillan, Harper-Collins, and Hachette -- were, in 2002, sued, under the Sherman Act, for colluding to fix e-book prices and alter sales models "in a case that could radically reorder the fast-growing business" (Catan, Trachtenberg & Bray, 2012). The DOJ claimed that the publishing companies' CEOs held regular closed-door meetings in upscale hotels in Manhattan to deliberate on how they would respond to Amazon's practice of discounting their e-books (Carmody, 2012)
Apple is a more recent victim of the antitrust scare. The company, and five of the nation's renowned publishers -- Simon & Schuster, Penguin, Macmillan, Harper-Collins, and Hachette -- were, in 2002, sued, under the Sherman Act, for colluding to fix e-book prices and alter sales models "in a case that could radically reorder the fast-growing business" (Catan, Trachtenberg & Bray, 2012)
The case is on course, and experts warn that there still is no end in sight. The publishers paid an estimated $164 million in fines to the government and one can only imagine how much Apple will have to part with in case an unfavorable ruling is given; more so, this will only be in addition to the costs the company is currently incurring in legal and lobbying fees (Herther, 2013)
99 price point" by the disgruntled CEOs), at which Amazon priced its newly-introduced e-books was too low, and would give the company too much clout in the market especially because the industry was experiencing a paradigm shift from physical to digital books (Carmody, 2012) Apple is accused of having held negotiations with the disgruntled publishers in early 2010 to have them offer their books in the iBookstore of the newly-launched iPad computer, at a price higher than Amazon's $9.99, alleging that "matching Amazon's prices would have involved taking a loss on many titles" (Voris, 2012)
These alliances help all airlines to benefit from this arrangement by reducing costs and competition on key routes. (Hauptman, 2008) (Wensveen, 2011) The biggest disadvantages are that these organizations could form a trust
These alliances help all airlines to benefit from this arrangement by reducing costs and competition on key routes. (Hauptman, 2008) (Wensveen, 2011) The biggest disadvantages are that these organizations could form a trust
Nextag Shopping Website and customer review website Yelp have repeatedly accused Google, which controls 67% of the market, of ranking its own products above those of competitors in search results. Google's rivals cite an example in which a Google search for 'Best New York Sushi' displays Zagat, a Google-owned restaurant review site, as the first result, though this is not the information the customer is searching for (Marrs, 2012)