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Case Study
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Topic:
Monopolies. Need to write a response to a discussion question.
Case Study Instructions:
Need to write a response to a discussion question
In today’s economy, there are a wide number of powerful companies who in all appearances control massive segments of different markets. Using the Internet, identify one example within the last year of a large company that has (or might be) engaged in anti-competitive behavior and what type. Next, suggest three ways that this behavior could be viewed as either a Horizontal or Vertical restraint of trade. Be sure to explain and define these terms and provide support for your response - also find a case example.
Identify and explain the different forms of restraint of trade in your example and, what are some of the defenses? Support your answer. Must cite work at the bottom
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Monopolies
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Google is one of the companies that have been using anti-competitive behavior in marketing its products. Currently, it has been fined $1.7 billion by the European Commission. However, the company has been making a lot of profits hence making the fines insignificant. The anti-competitive behavior was to cement a dominant market position through the use of the AdSense program. The program has had a market share of more than 70% since 2006. In their contracts, google forbids publishers from placing adverts on search results pages from their competitors (Alieva, 2019).
The anti-competitive behavior expressed by google can be considered as both horizontal or vertical restraint of trade. A horizontal restraint of trade is whereby an agreement is made by companies on the same level of production to reduce competition. A vertical restraint is an agreement made...
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