34. Monopolization of the US economy and antitrust laws

Due to the lack of free capital in the United States since the 1860s. active corporatization of production began. Subsequently, independent joint-stock companies began to conclude temporary agreements (pools) on uniform prices, tariffs, and production volumes. The most common form of monopolies are trusts and holdings.

Trusts were created by transferring their management rights to a single centralized board by shareholders.

The second form of monopolies in the United States were holding companies. Holding companies acquired controlling stakes in various enterprises, which allowed them to control, manage and finance these companies, although the latter retained legal independence.

State regulation plays an important role in maintaining the necessary level of competition in the market.

There are three main directions in its development in this area.:

1) measures aimed at the prohibition of monopolies (antitrust legislation);

2) state regulation of natural monopoly;

3) protection of companies from "excessive competition".

Antitrust Law - is a complex and extensive network of laws and regulations aimed at achieving the successful functioning of the market and the regulation of competition between firms.

The antitrust laws of many countries have been modeled on the US antitrust laws: the Sherman Act, the Clayton Act, and the US Federal Trade Commission ruling.

Sherman Act of 1890. constitutes the core of antitrust policy in the economic life of the United States. It outlaws "every contract and association, whether in the form of a trust or in any other form, or conspiracy to restrict commerce between the states or with foreign countries."

The federal government agencies that oversaw the implementation of the Sherman Act were successful in implementing antitrust programs, for example, they managed to demonopolize and break up Standard Oil and American Tobacco in 1911.

However, the Sherman Act had a number of omissions: this piece of legislation did not say anything about the status of monopolies formed by merger. In addition, many of the activities that restricted competition in the free market were interpreted here in a vague and ambiguous way.

Therefore, in 1914, the Clayton Act was passed, the main provisions of which were:

1) virtually all forms of discrimination in pricing policy were prohibited;

2) restrictions were imposed on the sale of goods with a forced assortment;

3) it was forbidden to merge firms by acquiring shares of competitors if such actions reduced competition;

4) it was forbidden to combine positions on the boards of directors of different firms.

Simultaneously with the Clayton Act, the US Congress ratified FTC ruling, which supplemented Clayton's law. This piece of legislation was intended to protect the interests of the consumer, to prohibit advertising that misleads consumers, and to prevent unfair competition practices. This act gave the US Federal Trade Commission, a newly created and independent body, the authority to determine, on a case-by-case basis, evidence of antitrust violations.

Since 1914, two amendments to the Clayton Act have been passed: the Robinson-Patman Act (1936), which strengthened measures to combat discrimination in the field of price policy, and the Celler Act (1950), which regulated the practice of merging monopolies even more strictly.

Authors: Zilbertova T.N., Takhtomysova D.A.

<< Back: Oligopoly. Oligopolistic relationship

>> Forward: Various models of the "welfare state". F. Roosevelt's "New Deal" and the Swedish model of reform

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Anesthesiology and resuscitation. Lecture notes

▪ Business planning. Lecture notes

▪ Hospital Pediatrics. Crib

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive Handwriting device 31.01.2001 The day is not far off when it will be possible to write and send e-mails with the help of a special pen developed by the Swedish company Anoto AB. Instead of a writing head, it contains an infrared emitter and receiver, with the help of which the built-in electronic circuit recognizes the movement of the user's hand on paper and transmits information via a Bluetooth connection to an external computer. There, the handwriting program processes it, converting it into text that can be formatted as a letter. The developed software will make it possible to use the miracle pen not only in tandem with a computer, but also with a mobile phone, where the novelty will greatly facilitate the process of writing and sending informative graphic and text messages.

Other interesting news:

▪ Restoration of hair growth on damaged skin

▪ LG ltraGear 48GQ900 OLED Gaming Monitor

▪ New wireless data record

▪ 1/4" 8 MP OmniVision OV8856 and OV88565 image sensors

▪ Battery powered by human saliva

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ site section Measuring equipment. Article selection

▪ article Collapsible house-hozblok. Tips for the home master

▪ article Why are fly stickers placed in men's toilet urinals? Detailed answer

▪ measles article. Health care

▪ article 136 kHz band antenna. Encyclopedia of radio electronics and electrical engineering

▪ article Handkerchief-traveler. Focus Secret

Leave your comment on this article:

All languages ​​of this page

Arabic	Hebrew	Polish
Bengali	Hindi	Portuguese
Chinese	Italian	Spanish
English	Japanese	Turkish
French	Korean	Ukrainian
German	Malay	Vietnamese

Home page | Library | Articles | Website map | Site Reviews

www.diagram.com.ua
2000-2024