Antitrust explanation

[punkrawket]

I have an assignment due that envolves Microsoft and all that antitrust garbage. I don't need help doing my homework, I just need "direction" with antitrust. I'm aloof about what antitrust means really. I looked it up and came up with: "Opposing or intended to regulate business monopolies, such as trusts or cartels, especially in the interest of promoting competition: antitrust legislation." Could anyone offer a good explanation of this definition or their own definition of antitrust? Examples are always good.

 

[Viper GTS]

First, look up the definition of trust as it pertains to this:

A combination of firms or corporations for the purpose of reducing competition and controlling prices throughout a business or an industry.

Example 1:

Company A says to Company B "We both make Product X, let's make an agreement. We won't sell ours below $500 if you won't. That way we don't have to worry about each other as a competitor."

Example 2:

Company C buys products from Company D and Company E to make Product Y. Company C buys out Companies D & E, thus reducing their operating cost in producing Product Y (no profit going from D & E to C means lower price for Y).

Viper GTS

 

[b0mbrman]

"Opposing or intended to regulate business monopolies, such as trusts or cartels, especially in the interest of promoting competition: antitrust legislation."

When the industrial revolution came around, it became evident that the big corporation was the way to go if you wanted a rockin' business. There was less risk (corporations have limited liability) and huge potential for capital. When corporations got big, nature took its course and they would try to form trusts so that they could control the entire market.

Did it work?

Not all the way of course. But the law does look for people trying to intentionally create monopolies and stop fair trade.

 

[NakaNaka]

Might want to look up information on the "Baby Bells" and the ATT antitrust case.

 

[Swanny]

That is Against Trusts. During the industrial revolution trust were a big problem because one trust could control lots of companies. So it wasn't technically a monopoly, but it was since the trust had ultimate control over the "competing" individual companies.

 

[b0mbrman]

Are you looking for the reason that trusts are bad?

 

[ZAQ3211]

In short - Carnegie or Rockefeller once was asked about competition.
His reply (to the effect) I don't want competition. I want the whole market.

Elimination of competition & cornering the market are what anti-trust
tries to prevent.
For instance owning ALL of the railroads.

ZAQ