Antitrust policy

The threat of unfair business practices by firms necessitates use of Antitrust laws to protect the competitors and the consumers. It is common knowledge in the context of business that established firms are likely to enjoy monopoly, create inefficiency and punish consumers. Besides, different level of economic growth across nations is likely to give undue advantage to some multinationals resulting to displacement of start-up local firms. From the idea of possible trust among companies that is characterized by price-fixing, exclusive dealings, and barrier of entry for other firms (Steiner 121).

Comparative evaluation of antitrust policies across the world shows the US as pro-competition and pro-consumer while Europe practices pro-incumbent and pro-producer policy. In the case of Pro-consumer, imposing antitrust policy ensure that firms uphold ethical business practice with emphasis on individual innovations, production techniques, adherence to single price devoid of mergers (Steiner 132). The result would ensure survival is based on innovativeness and consumers get value fir the money by choosing from a variety of alternatives. In the case of US, in 1902, Northern Securities was noted as engaging in a trust with J.P. Morgan and John D. Rockefeller leading to monopoly that barred potential market entrants and controlled prices to the disadvantage of consumers. In the case of European markets, the pro-producer antitrust policy emphasizes imposing strict non-price competitive strategies such that the multinationals and developed firms overshadow the efforts of smaller competitors (Steiner 144). In the case of pro-producer, monopoly through unfair access to input factors is highly prohibited as noted in 2014 European Antitrust investigation on Google perceived uncompetitive conducts like its Internet search business.

The overall goal of both Pro-consumer and Pro-producer Antitrust policies converges on leveling competition, enhancing innovation and promoting efficiency (Steiner 154). Besides, the quality of products to the customers is a key goal and general efficiency in the economy. It is worth noting the significance of Antitrust policy in the contemporary business practices and dynamic global economic trends.

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