Antitrust Policies and Gobal Competition

Companies that extend their manufacturing, marketing and sales capabilities to many regions of the world to compete are seen as competing globally. This is in an effort to increase annual sales, market shares and profits. Being a global competitor exposes the company or business to various antitrust laws and policies.

Antitrust policies look at how companies do business and ultimately treat their customers. It also looks at how companies use their powers, and the controlling of monopolistic company’s growth. The main objectives of antitrust are firstly, the protection and preservation of competition; this is achieved by outlawing monopolies, prohibiting unfair competition and eliminating price discrimination and collusion. Another objective is that it protects the consumers’ welfare by prohibiting deceptive and unfair business practices. Another one is to protect small independent businesses from the economic pressure applied by larger companies. These large companies can use predatory pricing by selling below producer’s cost in order to drive rivals out of business.

Anti trust policies originated in the United States of America in the late nineteenth century in the wake of some spectacular competitive abuse by big business leaders and their companies. An aroused public feared the uncontrolled growth of large companies, thus the first antitrust law was passed, out of fear and mistrust. Since that time, others have been created and the initial one amended. This as resulted in formidable tangle of laws, regulations, guidelines, and judicial interpretations that present business with the need to be careful how they manage their relationships with the competition and government antitrust officials.

These laws namely the Sherman Act of 1890 is the foundation of antitrust regulations in the US. This act prohibits monopolies in trade and commerce. It authorizes penalties includes fines and jail terms once there is violation. It also prohibits contracts, combinations,...