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

Antitrust Practices and Market Power - Essay ExampleThe just investigation against Google by Federal Trade Commission (FTC) followed complaints from competing search engines. They claimed that Google had monopolized the search demarcation and online advertising, making it difficult for them to compete. Other search engine claimed that Google had made it hard for new entrants to find their way into the grocery stores and industries that Google had already established operations. The Federal Trade Commission, which prohibits below the belt methods of competition and deceptive practices (Areeda & Hovenkamp, 2011), came in to investigate Googles antitrust behavior.Although FTC finally closed the investigation against Google without filling any lawsuits, antitrust behavior comes at a cost to the company. Google had to prove its case that it was not engaging in antitrust practices. This drew company resources into the investigation, resources that could have been directed to other comp any developments. Most importantly, foul 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 relevant legal framework. The applicable legal provisions included the Sherman Act (1890), Clayton Act (1914), and Federal Trade Commission Act (1914) (Posner, 2001). below 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 world investigated.Perfect competition, monopoly, and oligopoly market structures influence competition differently (Federico, 2009). These market structures determine whether or not there are barriers to entry into any given market