Verified Document

Government Regulations And Anti-Trust Term Paper

AP Wire. (8 Mar 2005) "Anti - Monopoly Agency Rules Against Intel. The New York Times. Business News. Retrieved 8 Mar 2005 at http://www.nytimes.com/aponline/business/AP-Japan-Intel.html One of the central concerns regarding government regulation of businesses and the establishment of monopolies is to protect the consumer by creating an open sphere of market competition. But what of a marketplace where a non-sanctioned monopoly has ensued where the consumer is not being unduly harmed? The economic theory of supply and demand holds that when supplies are kept artificially low, prices are kept artificially high. Traditionally, the defense against prohibiting monopolies are that "in a market that has only one or few suppliers of a good or service, the producer(s) can control price, meaning that a consumer does not have choice, cannot maximize his or her total utility, and has have very little influence over price." (Investopedia, 2005) But even when a firm does not directly abuse its status as a monopoly, should it still be allowed to continue its practices?

Japan's anti-monopoly Federal Trade Commission recently released a report that said Intel, the world's largest computer chip maker, broke Japanese antitrust laws by trying to elbow out rival microprocessor-makers through extending discounts and marketing payments given to personal computer makers in exchange for exclusive or near...

But Intel Company spokesman Chuck Mulloy in California said no evidence existed that Intel's discounts led to higher prices or a lower supply that could lead to higher prices for consumers. (AP Wire, 2005)
In other countries, antitrust regulators typically look beyond competitors, he said. "The Japanese FTC appears to be focusing only on harm to competitors as opposed the consensus view in the antitrust community that you should look at what happened to the market or, more importantly, to consumers," said Mulloy. "That analysis and that consideration are absent from this recommendation," and from most Japanese anti-trust law recommendations in general (AP Press Wire, 2005)

Market Outcome

Thus, while anti-trust law in America focuses on harm to American consumers, Japan's FTC anti-trust philosophy is geared to creating an overall better business environment for businesses as well as simply for consumers. Intel is purportedly engaging in actions to keep CPUs (central processing units) made by competing companies from being used and substantially limiting the CPU sales sector for Japanese personal computer makers. Thus, Intel is stifling the development of potential but much smaller rivals such as microprocessors made by rivals including Advanced Micro Devices Inc. And Transmeta Corp.'(AP Press Wire, 2005) If the case was…

Sources used in this document:
Work Cited

AP Wire. (8 Mar 2005) "Anti - Monopoly Agency Rules Against Intel. The New York Times. Business News. Retrieved 8 Mar 2005 at http://www.nytimes.com/aponline/business/AP-Japan-Intel.html

Investopedia. (2005) "Economics Basics: Monopolies, Oligopolies, and Perfect Competition." Investopedia.com. Retrieved 6 March 2005 at http://www.investopedia.com/university/economics/economics6.asp
Cite this Document:
Copy Bibliography Citation

Related Documents

Government Regulations or Antitrust Activities
Words: 733 Length: 3 Document Type: Term Paper

government's anti-trust regulations in the case of PeaceHealth, a non-profit health system that operates several hospitals in the Pacific Northwest. PeaceHealth, based in Bellevue, has steadily acquired several rural hospitals in Washington, Oregon and Alaska. Because of its broad network, PeaceHealth has become the object of government anti-trust legislation. In 2002, the Oregon-based McKenzie-Willamette Hospital filed an anti-trust lawsuit against PeaceHealth. McKenzie-Willamette claimed that Peacehealth gave regional insurers deep discounts

Anti-Trust Law Analyze and Criticize the Statement:
Words: 982 Length: 3 Document Type: Essay

Anti-Trust Law Analyze and criticize the statement: The strategy of the Sherman Anti-Trust Act and other U.S. antimonopoly legislation is to ensure that each company has meaningful competitors in every product market in which it participates. This strategy works to prevent monopoly pricing of products but unfortunately it is inadequate to prevent the development of quasi-political control of entire societies by oligopolies whose member corporations share a quasi-political agenda. Therefore, as

Anti-Trust Are Investors' Legal Remedies Enough During
Words: 914 Length: 3 Document Type: Essay

Anti-Trust Are investors' legal remedies enough? During the 1990s, a wave of legislation substantially deregulated the financial industry, effectively limiting the ability of investors to seek legal remedies in the wake of corporate fraud, and freeing corporations to take greater risks with 'other people's money.' The Private Securities Litigation Reform Act of 1995 (PSLRA) overturned the protections once provided by the 1934 Securities Exchange Act (Nations 2012). Then-President Clinton vetoed PSLRA, and

Anti-Trust Law the American Dream
Words: 1265 Length: 4 Document Type: Term Paper

One of the reasons it is against the anti-trust laws to do this is because it places large businesses like Wal-mart and Microsoft at an unfair advantage because they have enough capital to get through lean times caused by below cost pricing long enough to drive the small business competitors out of business. Many states have laws against selling gasoline below a legal limit that is set by the government for

Anti-Trust Partnership or Joint Venture
Words: 667 Length: 2 Document Type: Thesis

One of these is Chapter 2 of Title 15, Subchapter 1, Section 45. This Section regulates unfair methods of commerce and competition. These methods are declared as unlawful under the act. The Section specifically relates to national and local practices, as opposed to foreign trade, and therefore applies to our proposed partnership. "Unfair" practices are defined as those practices that are likely to cause some injury to other businesses

Sports and Anti-Trust Is the National Football
Words: 4609 Length: 15 Document Type: Term Paper

Sports and Anti-Trust Is the National Football League's Requirements to Enter the Draft a Violation of Antitrust Law? If so why? Why does the NFL think it is not a violation? Defining the AntiTrusts Legislation Sherman AntiTrust Legislation Clayton Antitrust amendment Presidential support The Maurice Clarett Case The NFL's position, The effect is could have on the game. Judge Scheinin's decision Sherman Antitrust Act Clayton Act Basis of Judge Shira Scheinin's Decision Other cases from other Professional sports leagues, like the NBA, that are

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now