Apple’s Antitrust Violations Essay - 275 Words

Apple's Antitrust Violations (Research Paper Sample) Content: Apples antitrust violationsNameInstitution Apple conspired with the top North Americas book publishers to increase book prices unrealistically. One of the judges deciding the case termed the Apple as involved in a conspiracy to restrain trade unreasonably, which amounted to the violation to the Sherman Act. Sherman Act is among the federal antitrust laws. Apple agreed to settle the suit by paying $450 million penalty, which largely went to e-book buyers (Martins, 2010). A review of the case shows that Apple had engaged in price fixing, which is an antitrust behavior. Fixing of prices is best illustrated when competing firms conspire to set the charge for service or price of goods. This includes the conspiracy not to sell a product or service below a given price (Martins, 2010). Notably, the buyer is deprived the advantages of competition in the market. As stated, the antitrust act considered was the Sherman Act (Martins, 2010). Clearly, antitrust behaviors hurt the co nsumer undesirably, evident from Apples case. This is because consumers are overcharged and denied the opportunity to compare prices among competitors. However, the firms engaging in antitrust violations may enjoy large profits at the expense of consumers. Monopolies and oligopolies open appear as bad disadvantageous to the consumer. Notably though, monopolies and oligopolies have several advantages. For instance, monopolies are best suited for markets characterized by increasing returns to scale. These include water, telephone, and power companies. Further, monopolies are needed to achieve a given size or create desired expertise. For instance, security at an airport should be given to a single company for many years. One cannot imagine what would happen with a different security company at each floor or the company was changed every month. Therefore,...