Ave antitrust laws failed to safeguard the consumers from the implications of the megamergers?
Theme: Economic concentration and antitrust laws
Position: antitrust exists to protect competition and not to prohibit monopoly. Being a monopoly alone is not sufficient to result in consumersi?? disadvantage since there are other factors, which play important roles.
Megamergers can create an excessive amount of economic concentration and market power, which can threaten the competition. When there could be number of mergers that benefit both competition and consumers due to the firms resulting in more efficient conducts, there are so many mergers that can lead to higher prices, fewer or lower-quality goods or services, and less innovation. Antitrust in general represents a significant competition policy tool that inspires US and many other countries public policies regarding business conducts. Section 7 of the Clayton act adequately addresses the mergers and questions whether the increased concentration will harm the competition. Antitrust policy has undergone incredible change over the twentieth century as the markets have. Nevertheless antitrust laws control how firms reach and sustain their market power, they do not prohibit monopoly. (modern industrial organization chapter 19) . In this paper first I will discuss the main antitrust statutes regarding mergers, then I will illustrate how the interpretation of these statutes have changed over time. Finally I will look at the enforcement of antitrust and will demonstrate the cases in which antitrust laws prohibit the monopoly power. It is important to recognize nevertheless the majority of monopolies end up being destructive for the society, it is not always the case, thus we have to consider each event based on its own merits.
Added on 20.03.2015 11:22
YouLl have to specify which competition law you are referring to (i.e. US or Canada) and youLl definitely want case studies.That said, you have an excellent juxtaposition of ideas set up through which to examine market structures as they relate to the law.
Added on 20.03.2015 11:26
I have provided you with my abstract and a list of references which I think would help. however it is just a foundation to your work and please elaborate on that and change and add anything if you believe it is necessarily and would help to make the essay better , I need to get an A+ in this assignment so please be very specific with your points and arguments.