LAW 101 Lecture Notes - Lecture 28: Sherman Antitrust Act, Market Power, United States V. Microsoft Corp.
Document Summary
Ch. 5: government regulation of competition & prices: prevention of monopolies & combinations: To determine whether a firm has engaged in monopolization or attempts to monopolize, courts determine whether firm has market power: the ability to control price & exclude competitors. Crispy clowns may have market power nationally, but in albany, it would not reach monopoly levels. Having a large percentage of a market is not necessarily a monopoly. The sherman act prohibits competitors agreeing to set prices. Price-fixing can involve competitors: agreeing to not sell below a certain price, agreeing on commission rates, agreeing on credit terms, exchanging cost info. Price is treated as a sensitive element of competition. Discussion among competitors has also been deemed to be an attempt to monopolize: tying: A violation of the sherman act is to force (cid:498)tying(cid:499) sales on buyers. Sherman antitrust act does not prohibit bigness.
