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Antitrust

By | Jan. 2014
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Research Paper – Antitrust

Introduction
The purpose of this paper is to discuss antitrust law with regard to federal regulations. In the form of a case study, this paper will examine the legal obstacles faced by the merger proposal between US Airways Group Inc. and American Airlines' parent corporation AMR. The focus of the paper is to examine the legal hurdles posed by antitrust laws used to block the merger and then briefly explore possible ethical issues associated with allowing US Airways Group Inc. and AMR to merge. Antitrust Laws

There are three core federal antitrust laws in effect today in our US legal system. They are the Sherman Act, The Federal Trade Commission Act, and the Clayton Act ("Antitrust", n.d.). The Sherman Antitrust Act (Sherman Act, July 2, 1890, ch. 647, 26 Stat. 209, 15 U.S.C. § 1–7) is an antitrust law primarily aimed at prohibiting the formulation of monopolies by making them a felony offense. As the Sherman Act evolved the US Supreme Court decided that monopolies in and of themselves are not bad and do not automatically violate the Sherman Act. Instead, it is the particular actions taken to obtain or maintain monopolistic positioning that is illegal ("Sherman", 2008). The Federal Trade Commission Act (15 U.S.C. § 45: US Code - Section 45: Unfair methods of competition unlawful; prevention by Commission) has a primary duty of prohibiting actions within commerce that are deemed unfair to competition ("15 U.S.C. § 45", n.d.). The Clayton Act (15 U.S.C.A. § 12 et seq. [1914]) is an addition to the antitrust laws primarily used today to prohibit certain types of business practices making them illegal when their usage severely restricts competition and/or creates a monopoly. The practices specifically addressed in the Act are price discrimination, making it illegal to sale the same product to different people in the same market at different prices; tying and exclusive dealing contracts, making it illegal...
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