...Dentsply International and Market Power Ashley Davis DeVry University Dentsply International and Market Power The Congress passed antitrust laws in effort to protect competition in the market, as well as consumers whom are the ultimate recipients in the market (Novak, 2007). The case that will be discussed in this paper will be a company that was found guilty of violating section 2 of the Sherman Act, which focuses on people that are trying to monopolize the market for their own benefit, or someone that is trying to get complete control within an area of the economy. With the Sherman Antitrust Act in place, monopolization is very illegal and the act tries to prevent it from happening and protect competitors in the market (Novak, 2007). Dentsply International is a company that makes dental products, but their main product sold is false teeth. The company sells product in over 100 countries, so it is a very large company. The company sells its products to dealers, who then sell the false teeth and other products to dental labs. These labs then distribute the product to dentists with the supplies they need. If you don't include false teeth, the company supplies buyers with millions of dollars of products and dominated the artificial teeth market since they had close to 80 percent of the market share at the time they were being sued (Novak, 2007). Dentsply told their dealers that they had tell sell their supplies and deal primarily with them. When the Dentsply did that...
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...Small Business & Antitrust Laws Andrew Paul Danecki DeVry University Small Business & Antitrust Laws It may seem like in the United States that the free-market is a bit cutthroat and everyone is out for their own best interests. The U.S. is best described to have a mostly capitalist economy, and there are a handful of laws to allow growing businesses to have a fair chance to compete against other companies of the similar market. Antitrust laws, protection against monopoly, and laws pertaining to certain mergers are just to name a few. These laws are important, and extremely effective at protecting the small and growing businesses. It was not perfect at first, of course, but has adapted to cover a handful of loopholes. When you think of a monopoly, what normally comes to mind? That good, old classic board game made by Hasbro. That’s what I think of when that word comes in mind. And just like in the game, you try to dominate the board and be the only player left. The same goes for that word in the market world, which actually is illegal since the Sherman Antitrust Law was enacted in 1890. A monopoly is when a single company has solid control over the market with a particular product or service. Congress passed this first antitrust law as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade” (The Antitrust Laws, n.d.). The last two laws were passed shortly later, and all three of these laws...
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...fighting monopolies, there needed to be another act that more specifically and clearly prohibited certain anti-competitive practices. Since the Sherman act needed more clarification, the Clayton Act of 1914 was soon drafted by Henry De Lamar Clayton Jr. Clayton along with many other people though the Sherman Act needed to be strengthened and clarified to work better. When Woodrow Wilson became president he instructed Congress to pass this act. He along with many others thought that the Clayton act “addresses specific practices that the Sherman Act does not clearly prohibit, such as mergers and interlocking directorates” (Scarlatti, 1). The Clayton act addressed many issues including: “price discrimination, exclusive dealing contracts, tying agreements, or requirement contracts; mergers and...
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...Antitrust Laws and Competitive Business Practices The fair, balanced and competitive application of U.S. laws as applied to business practices Introduction Several laws have been enacted to provide protection to businesses in our free-trade market. There are times when trading within the free market does not demonstrate the fair, balanced and ethical conduct deserved in competitive business. Trying to compete in a market where practices aren’t regulated deprives businesses the benefits of competition, resulting in higher prices for products and services which in turn affect the economy. Unfair trade practices have been around for as long as trade itself. Unfair practices were under scrutiny as early as 470 B.C. Grain was so vital to Greece’s population that trade laws were enacted. A percentage of grain was taken by the state therefore taxes were applied to anyone not importing directly to Athens. Death applied to anyone restricting imports (http://www.ancient.eu/article/115/). The latter was definitely extreme but regulations now cover a broader range of violations with less severe consequences. The federal government enforces three major antitrust laws. These laws address unfair practices that deprive businesses the benefits of interstate and international trade. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. The Sherman Antitrust...
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...| ANTITRUST LAW | | Name -Manpreet Kaur [Date] | “The mission of the Antitrust Division is to promote economic competition through enforcing and providing guidance on antitrust laws and principles”. Antitrust laws have been developed to create the strong foundation of a free & open market of a vibrant economy. Market is so competitive now a days, there are so many options available for products & services, which is the result of antitrust laws. Antitrust is developed to help both consumers & business owners. “These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices” Antitrust laws are developed by the U.S. Government, also commonly known as "competition laws". Antitrust law was put in place by U.S. Government to protect consumers from being vulnerable to exploitery business practices. Government protects consumers by ensuring that the competition which exists in the market is fair, & would also ensure that enforcement leads to an open-market which is consumer friendly. ANTITRUST LAW-GOAL & HISTORY The goal set by government is to protect the end user, consumer, antitrust laws “is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace”. Consider being in a market with one option, what it would offer to consumers, technically nothing, because there are no options. Antitrust law ensure that the “Competition in a free market benefits American...
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...INTRODUCTION Imagine a world where individuals can provide a good or service to consumers, and in return be compensated. They might do a very good job and even make a considerable profit. Other individuals, seeing the success of this industry, would try to enter the market in order to compete. This idea is the very basis of free market and capitalist economies. But sometimes there are situations where an individual will have a product or service that is better, cheaper, or quicker than everyone else; so much so that they are the only ones that can effectively provide it. When this occurs, competing businesses and giant government entities will stop at nothing to shut it down. The Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act make up the current US antitrust laws. The antitrust laws are supposed to promote and protect competition. The philosophy behind the laws is that trusts and monopolies will stagnate markets and prevent others from engaging in healthy market competition. A monopoly is defined as a situation in which a single company owns all or nearly all of the market for a given type of product or service. (Investorwords, 2010) Antitrust law legislation started with the Sherman Act that was passed in 1890. The intent of the law was put in place to challenge the unchecked growth of corporations. By 1888, large corporations gained enough market muscle to dominate entire industries. The Sherman Act outlaws all contracts, combinations,...
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...18. May 2012 Final Journal Topic: Monopoly and Antitrust The market power of either buyers or sellers, harms buyers who may have the opportunity to buy at competitive prices. It also reduces the production, which causes a deadweight loss. Excessive market power also raises issues of equity and justice, because if a company has too much monopoly power, it makes profit at the expense of consumers. A monopoly is a situation in which there is a single supplier or seller of a good or service for which there are no close substitutes. Economists and others have long known that unregulated monopolies tend to damage the economy by (1) charging higher prices, (2) providing inferior goods and services and (3) suppressing innovation, as compared with a competitive situation (i.e., the existence of numerous, competing suppliers of the good or service).[1] In theory, the Government or State could collect the excess profits that the company obtained through taxes and then redistribute it among the buyers of the product. However, this redistribution is usually not feasible. It is difficult to ascertain what proportion of the profits of an enterprise is attributable to monopoly power and it is even more difficult to locate all buyers and reimburse them an amount proportional to their purchases. How can society, then, limit the market power and prevent the anti-competitively use of it? In the case of a natural monopoly, i.e. an electricity/power...
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...Anti-trust Policy in the Modern Economy Microsoft's Anti-trust Case Mark Hinman UCCS Baud 5590 Anti-trust Policy in the Modern Economy Microsoft's Anti-trust Case This paper's intention is to discuss the role of anti-trust legislation in the modern economy. To accomplish this, we will be reviewing the United States Government's anti-trust case against Microsoft that began nearly twenty-two years ago. To begin we will look at the history leading up to the filing, the government's argument, Microsoft's argument, and the outcome of the case. We will also look at the intent of the Sherman Anti-Trust Act. Specifically, how does the Sherman Anti-Trust Act protect consumers? Finally, we will discuss whether the anti-trust legislation actually accomplishes what it is intended to do, with respect to the technology industry. Microsoft has been under constant scrutiny since June 1990 when the Federal Trade Commission (FTC) launched a probe into the possible collusion between Microsoft and IBM. Three years later, the FTC handed over their investigation to the U.S. Department of Justice. After years of accusations for monopolizing and engaging in anti-competitive acts, Microsoft finally, on May 18, 1998, received a suit for violation of federal anti-trust laws.[i] The suit alleges that Microsoft is in violation of Sections 1 and 2 of the Sherman Anti-Trust Act, and seeks to prohibit Microsoft from selling certain products and engaging in certain sales...
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...BUSINESS PRACTICE LAWS IN THE U.S. DeVry University Business Laws Effective or Not When referring to the business practice laws or the Antitrust laws, I feel that they are effective. They are setup to make things somewhat fair in the business world and allowing companies to be competitive, at the same time protecting consumers. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices (FTC). They also are setup to benefit the consumer, by having incentives for businesses to operate, keep prices down, and by keeping the quality up. These laws also, make it fair to the other companies and stop companies from monopolizing. By setting up the law of stopping monopolies, has also ensured there is effective economy. This was done in the late 1890’s with the Sherman Antitrust Act. The act's primary goal was to limit the expansion of monopolies, the restriction of free trade (competition) and the imposition of price fixing by industry members or any combination of business practices that led to the restriction of trade (Heakel, 2010). This allows for more competition, which has helped the consumer able to get the best price for their money and also allowing the consumer to have a choice in where to buy a product. So, basically there are many sellers busily competing against one another to sell a particular kind of product or service to paying customers, no seller will be able to take unfair advantage of the buyers, but...
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...Competition Law & Pharmaceutical Industry Adithya Krishna Chintapanti About CENTAD Undertakes policy research and advocacy on issues related to trade and development, with a primary focus on South Asia. Centad’s work on access to medicines currently focuses on issues pertaining to access in India and aims to Secure a legal and policy environment to ensure access to medicines. Ensure transparency and accountability in public spending on drugs. Examine the impact of industry practices on access. Focus of the Presentation Bring to light anti-competitive practices prevalent in the pharmaceutical industry and healthcare sector. Indicate the approach proposed to be taken for executing the study and analyzing the data collected in pursuance thereof. Broad Scheme of Presentation Indian Pharmaceutical Industry a Snapshot Access to Medicines Situation in India Objectives of the Study Anti-competitive Practices Competition Act 2002 Regulation of Combinations Anti-competitive Agreements Abuse of Dominance Proposed Chapterisation Proposed Methodology 1. 2. 3. Indian Pharmaceutical Industry a Snapshot Net Worth 8 Billion Dollars Growth Rate of 8-9% PA. 4th in the World in terms of Volume of Drug Output Exports to nearly 212 countries @ USD 4795.33 million (2005-06) Has an important role to play in promoting public health and Right to Health. Highly technology and knowledge intensive. Indian Pharmaceutical Industry a Snapshot Industry growth highly dependent on...
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...Week 3 Research Paper DeVry University The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other. Before the late 1800’s there were no laws to protect consumers and the process of competition. Often times, the consumers and the well being of all were not taken into consideration before these antitrust laws were put into act. The business owners were more often than less, only looking to make a profit no matter what that took. Thankfully, in 1890 Congress passed the first antitrust law, the Sherman Act as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” This law states that, “This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.” (www.ourdocuments.gov/, 2014) A law designed to restore competition and free enterprise by breaking up monopolies. The original intention of the Sherman Antitrust Act was to protect consumers from big businesses that were using unscrupulous means to raise prices artificially, such as intentionally producing too few goods to meet consumer demand and thereby driving up the products'...
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...According to Salvatore (2012), regulation is the result of pressure-groups action and results in laws and policies to support business and to protect consumers, workers, and the environment. Salvatore (2012) goes on to describe that starting with the Sherman Act of 1890, a number of antitrust laws were passed to prevent monopoly or undue concentration of economic power, protect the public against the abuses and inefficiencies resulting from monopoly or the concentration of economic power and maintain a workable degree of competition in the U.S. economy. First, lets discuss regulations and the ways that government has been able to restrict competition. Government regulation has four main purposes, preventing abuses, protecting consumers, limiting negative externalities and promoting competition. These regulations includes things like licensing, restrictions on price competition, as well as patents. Regulations will also help ensure economic stability by keeping the unemployment rate low as well as keeping the inflation rate low. A license is often required for a business just to operate and remain open. A business such as TV, radio stations, child care services; professions like medicine and law; and trades such as plumbers, electricians and real estate brokers as well as dietitians and taxi cab drivers all need a license in order to operate. The government requires license of these businesses and professions in order to protect the public against things like fraud and...
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...Examining the Laws on Commercial Speech and Free Market Competition Our society has advanced to where it is today because of the interaction and exchange that fosters innovation and economic progress. We cannot naively rely on the pure goodness of society to insure that trade and business is fair—society depends on institutions for that, more specifically the institution of law. Good laws are intended for society to capture the gains from trade and interaction. This paper will evaluate whether the laws that relate to commercial speech and free market competition are designed with society in the forethought. Commercial speech is speech delivered by a business or someone speaking on behalf of a business to potential consumers. The first amendment in the United States Constitution protects the freedom of speech, but whether it also protects commercial speech has been subject to debate in the past. A case that tackles this issue is Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council. Consumers in Virginia challenged a statute that prohibited licensed pharmacists from disclosing price information on prescription drugs, deeming that to be unprofessional conduct. What makes this case unique is that the ones who brought forth the suit are not the subject of the statute, the pharmacists, but the consumers. The consumers believe that the poor, sick, and elderly are hit the hardest by this statute because “a disproportionate amount of their income tends to be spent...
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...Question 1 0.5 out of 0.5 points A restraint of trade is an agreement between firms that has the effect of reducing competition in the marketplace. Selected Answer: Correct True Correct Answer: Correct True Question 2 0 out of 0.5 points When applying the rule of reason to determine whether an agreement violates Section 1 of the Sherman Act, a court will not consider Selected Answer: Incorrect the parties' market ability to implement the agreement. Correct Answer: Correct the effect of the agreement on international trade. Question 3 0 out of 0.5 points An act must substantially affect interstate commerce to violate antitrust law. Selected Answer: Incorrect False Correct Answer: Correct True Question 4 0.5 out of 0.5 points Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is Selected Answer: Correct a market division. Correct Answer: Correct a market division. Question 5 0 out of 0.5 points Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts Company, a competitor, to do the same. This is Selected Answer: Incorrect a market division. Correct Answer: Correct a group boycott. Question 6 0.5 out...
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...Google Antitrust Investigation Google is an American corporation specializing in internet search. Google was founded by Larry Page and Sergey Brin while they were doctoral students at Stanford University in the mid 1990's. The company has been estimated to run more than one million servers in data centers around the world and process over one billion search request each day. The company's perceived monopoly and market dominance let to media coverage accusing the internet giant of not only copyright issues, but censorship and privacy violations as well. However, despite these accusations, Google.com was reportedly the most visited website in 2013 (Savitz & Cooper, 2012). Google's critics claim that it unfairly utilizes its search engine to advance its own services over their competitors. Companies with no ties or google affiliations claim that, “Google engages in anti-competitive behavior across many vertical categories of search that harms consumers by restricting the ability of other companies to compete or put the best products in front of Internet users, who should be allowed to pick winners and losers online, not Google” (Savitz & Cooper, 2012). Google has fired back to these allegations by claiming that search users are easily able to locate other service providers and that their website is built for users and not for websites. Ironically, Microsoft was the company who originally launched the initial claims regarding Googles online practices. Many people remember...
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