Question by Darla: Economics- Barriers to entry Regulation question?
What implementations can the government take through policy and cooperative strategies in order to deter anticompetitive behaviour and strategic barriers to entry?
Hey! I can’t think of any other examples and its hurting my soul- any help would be MUCH appreciated 🙂
Answer by When HARRY Met GINNY
Antitrust is an influential area of the law that seeks to maintain a competitive economy for the benefit of consumers and competitors. The government’s victory in the Microsoft case, billion-dollar fines in price-fixing cases and the recent flood of multi-billion-dollar mergers are all examples of the impact of antitrust law on the daily lives of all.
The Federal Trade Commission’s Bureau of Competition champions the rights of American consumers by promoting and protecting free and vigorous competition. The Bureau:
•reviews mergers and acquisitions, and challenges those that would likely lead to higher prices, fewer choices, or less innovation;
•seeks out and challenges anticompetitive conduct in the marketplace, including monopolization and agreements between competitors;
•promotes competition in industries where consumer impact is high, such as health care, real estate, oil & gas, technology, and consumer goods;
•provides information, and holds conferences and workshops, for consumers, businesses, and policy makers on competition issues and market analysis.
Free and open markets are the foundation of a vibrant economy. Aggressive competition among sellers in an open marketplace gives consumers — both individuals and businesses — the benefits of lower prices, higher quality products and services, more choices, and greater innovation. The FTC’s competition mission is to enforce the rules of the competitive marketplace — the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices. The FTC’s Bureau of Competition, working in tandem with the Bureau of Economics, enforces the antitrust laws for the benefit of consumers.
Both the FTC and the U.S. Department of Justice (DOJ) Antitrust Division enforce the federal antitrust laws. In some respects their authorities overlap, but in practice the two agencies complement each other. Over the years, the agencies have developed expertise in particular industries or markets. For example, the FTC devotes most of its resources to certain segments of the economy, including those where consumer spending is high: health care, pharmaceuticals, professional services, food, energy, and certain high-tech industries like computer technology and Internet services. Before opening an investigation, the agencies consult with one another to avoid duplicating efforts. In this guide, “the agency” means either the FTC or DOJ, whichever is conducting the antitrust investigation.
What do you think? Answer below!