Antitrust Practices and Market Power Essay Example | Topics and Well Written Essays - 500 words - 1

Antitrust Practices and Market Power - Essay ExampleThe antitrust investigating against Google by federal Trade outfit (FTC) followed complaints from competing search engines. They claimed that Google had monopolized the search business and online advertising, making it difficult for them to compete. former(a) search engine claimed that Google had made it hard for new entrants to find their way into the make outets and industries that Google had already established operations. The Federal Trade Commission, which prohibits unfair methods of competition and deceptive practices (Areeda & Hovenkamp, 2011), came in to investigate Googles antitrust behavior.Although FTC finally unkindly the investigation against Google without filling whatsoever lawsuits, antitrust behavior comes at a cost to the corporation. Google had to prove its fibre that it was not engaging in antitrust practices. This drew company resources into the investigation, resources that could have been directed to o ther company developments. Most importantly, unfair and illegal business activities often taint company image and consumer loyalty. This could eventually mark a devastating turning point for the company.Investigation into Googles antitrust behavior was undertaken within the pertinent legal framework. The applicable legal provisions included the Sherman Act (1890), Clayton Act (1914), and Federal Trade Commission Act (1914) (Posner, 2001). Under the Sherman Act, Google was investigated for the monopolization claims by other search engines. In the light of Clayton Act, the companys exclusive dealings were put on the spot. Finally, the FTC Act encompasses unfair and anticompetitive practices for which Google was being investigated.Perfect competition, monopoly, and oligopoly market structures captivate competition differently (Federico, 2009). These market structures determine whether or not there are barriers to entry into any given market