The Anti-Trust Case Anheuser-Busch Inbev

Anti-Trust Case- Anheuser-Busch InBev
Xavier A. Aldea
DeVry University

Anti-Trust Case- Anheuser-Busch InBev
Introduction
The Antitrust law is one that encourages marketplace rivalry by controlling anti-competitive behavior by businesses. The laws and regulations prohibit accords or acts that limit free trading and competition among businesses (Jacobson & American Bar Association, 2007). This may include cartels, dominating firms, some mergers and acquisitions and joint ventures. Conducts that are deemed a threat to competitive process can be barred, or permitted on conditions such as requirements to divest part of the merged company (Rubinfeld, 2001). United States antitrust law controls the behavior and management of
No, monopolies and Oligopolies are not always bad. Consider an example of a natural monopoly that emerges out of increased sales and increased capacity hence enjoying economies of scale and a further decrease in unit cost that is passed to the consumer. Government monopolies are those created by the government for the purposes of ensuring critical and sensitive services are catered for in the best way. Examples include money-printing firms, and weapon production corporations. This does not necessarily operate efficiently and actually in most cases they are inefficient and hence fail to utilize resources optimally (Fisher & Konieczny, 1995). Most government created monopolies are inefficient, costly and low in productivity which are not good for society. Well-managed monopolies and Oligopolies can use their capacity to enhance economies of scale. In large economies of scale, firms can operate at maximum capacity, consequently reducing its production and unit cost. The benefits of lower cost can be passed on to society in the form of lower
These kind of firms require high resource investments, patents, regulations, have established distribution and supply networks, have adopted advanced technology and they enjoy economies of scale. A monopoly condition typically permits the firm to determine a monopoly price that is above what would be found in competitive situations. In these circumstances, the seller set a price to reap maximum profits under the assumption that there is no worry about competition (Stiglitz, 1973). Examples of monopolies include Google, Microsoft, and DeBeers. Oligopolies include health insurers, wireless carriers, and oil marketers. These elements can be used by the monopolies and oligopolies to bar entrants in the market. In addition, these market players are capable of agreeing to set similar prices since they are few in the market and their products mostly do not have near substitutes. Examples are in the oils markets and the airline industries where the few players control the larger market share and tend to have similar services with close prices. Oil marketers have been alleged to collude in fixing prices. OPEC members are also known to exhibit tendencies of oligopolistic