Antitrust Practices and Market Power Essay Example | Topics and Well Written Essays - 1250 words

fair Practices and Market Power - Essay ExampleAntitrust laws, often kn admit as competition laws ar norms introduced by the government of U.S. to prevent the consumers from the negativities of rapacious pricing introduced by the potential business giants in securities industry and thereby help in promoting free trading activities in the open economies. This essay will tolerate in the recent antitrust investigation against the giant web reckoner Google. The Federal Trading heraldic bearing had introduced the antitrust inquiry against Google in October 2012 and recommended the government to completely sue the business giant. Such laws are by and large incorporated over firms that exhibit noncompetitive or oligopolistic characteristic features. In short, the imperfectly competitive market structures encourage the malpractices and bureaucracies of potential firms in almost all industrial segments. Antitrust investigation is the best assail against much(prenominal) ill practi ces. The issue of antitrust investigation against Google encompasses the online business industry (Lohr, 2012). Reason for Antitrust investigation against Google The Federal Trading Commission (FTC) augmented pressure in Google for an antitrust investigation and decided to sue the giant web searcher. The company was claimed to manipulate its search results in a way that would facilitate its own products and make the same difficult for its potential rivals in the industry. However, the officials of the company had announced to answer and prove its sinlessness against any charges imposed by the regulators. FTC has equipped itself with a team which would drag Google to the court if required. Beth A. Wilkinson was the legislator appointed by FTC to fight against Google in the court. The European Union Commissioner have also claimed that Google is monopolizing the online industry and forcing other specialized search engines and advertizes to foreclose their businesses. Google has also b een accused for manipulating its e-commerce services results. It is also found that Google introduces lobbying affairs with smart phone makers and jam them not to remove the Google android operating systems from their manufactured phones. The American Antitrust Institute (AAI) has also concur to the claims of FTC made against Google. This case is a typical case of antitrust exploration that has been prerequisite because the firm bear on (Google) simply enjoys oligopolistic or monopolistic power in the digital market places (Cleland, 2013). Pecuniary and Non Pecuniary greet due to Imperfect Competition The monopolistic and oligopolistic firms exist in markets where perfect competition does not exist. The firms in this type of a market structure are not set takers but are price makers. There are a large number of buyers but only few sellers in such market structures. Thus, the existing producers in an imperfect market have power to discriminate the buyers both in social and econo mic grounds. The demand curve faced by these types of firms is downward sloping in reputation (W. Shepherd & J. Shepherd, 2003). Figure 1 AR and MR Curve of a Monopoly or Oligopoly Producer AR, MR Price or Average Revenue Curve (P or AR) Quantity Marginal Revenue Curve (MR) Antitrust expression of the firms causes many economic and noneconomic costs. Imperfect competition in the market is responsible for inefficient allocation of resources, the monopolistic and the oligopolistic sellers often hoard their products to artificially increase the prices. Price discrimination is also one of the mal practices