Monopolies and Antitrust

An explanation of antitrust and monopoly laws using a specific example from the media industry.

An analysis of whether a single company should be allowed to own a television station and a newspaper in the same geographic market. This paper examines this issue from the perspective of the company, the industry as a whole, and the consumer in the market.

Contents
Introduction
Review and Discussion
Economic Considerations
Discussion of the Problem
Public Policy Interest
Conclusion
“The Sherman Antitrust Act was the key legislation in the United States effort to maintain by a competitive economic playing field by law. This act, which outlawed any “combination or conspiracy in restraint of trade,” has been reinforced by other legislation aimed at specific practices that serve to lessen competition. In 1914 the U.S. Congress passed the Clayton Antitrust Act and also established the Federal Trade Commission. The Clayton Antitrust Act made illegal such practices as price discrimination and tying contracts, which forced a buyer or seller to deal exclusively with a specific firm for the provision of a good or service. More recently, the Celler-Kefauver Act (1950) attempted to prevent mergers through the acquisition of the assets of competing firms if the effect is to substantially lessen competition. The Telecommunications Act of 1996 also influenced this merger.”

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