Anti-competitive behavior
Please use the following link provided to find a 2019- 2020 Anti-competitive behavior https://www.justice.gov/atr/
In today’s economy, a large number of powerful companies, by all appearances, control massive segments of different markets. Using the Internet, identify one example, within the last year, of a large company that has (or might be) engaged in anti-competitive behavior, and explain the type of behavior.
Next, suggest three ways that this behavior could be viewed as either a horizontal or vertical restraint of trade. Be sure to explain and define these terms and provide support for your response. What are some defenses to the restraint you identified? Support your answer.
Answer preview
The third way the antitrust behavior can be viewed as vertical restraint is on the agreement between ESTI and InterDigital. The technologies that support the 3GOO standards are a result of the agreements between ESTI and InterDigital and are supposed to be made available for consumers. By entering into the agreement with ESTI and later failing to provide consumers with the licenses, InterDigital broke the Sherman Act that prohibits conspiracy agreements that lead to monopolizations. InterDigital restrained competition of the technology standards by limiting competitors and later increased the license cost beyond the customers’ reach. The agreement with ESTI gave InterDigital the monopoly of charging supra-competitive costs that bars entry into the market. Through the agreement with ESTI, InterDigital gained monopoly and hence compete at a higher level compared with Lenovo, and thus the antitrust behavior is vertical.
[715 Words]
Anti-competitive behavior
