Antirust Law: I Like a Little Competition Essay

Antirust Law: I Like a Little Competition Essay

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“Antitrust law isn't about protecting competing businesses from each other, it's about protecting competition itself on behalf of the public.” This quote by politician Al Franken reveals the core of antitrust law intention. When firms collude, not only are other businesses hurt through increased barrier to entry, but consumers are often forced to pay higher prices for goods that may lack quality. Competition benefits consumers, creating fair prices based off of market supply and demand, and provides an incentive for companies to decrease prices and increase quality. For these reasons, a healthy economic market in which firms can compete to acquire ownership of new resources and have the ability to enter into new markets, needs to be supported by enforceable laws. Antitrust laws have become an integral part of how modern businesses operate in increasingly more complex markets and legal systems. Throughout this report, I will provide a brief history of antitrust law, discuss some of the applicable laws and regulations which apply to modern firms within the broadcasting and cable industry, and provide analysis on the ongoing case of the Comcast- Time Warner Cable merger.
The wording antitrust can be a little misrepresenting. A trust occurs when a trustee takes fiduciary responsibility over the property of a beneficiary. These agreements are very common in the establishment of funds for beneficiaries that are incapable of managing their own funds, like college funds. The current antitrust laws in place are not intended to prevent the formation of traditional trusts, but rather the business application of trusts that inhibit competition. Our market is dependent on competition to drive producers to innovate, keep costs low, an...

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...tory." Teaching American History. N.p., n.d. Web. 18 Apr. 2014.
"Comcast-Time Warner Deal Sparks Sharp Criticism From Netflix." Netflix CEO Blasts Comcast-Time Warner Cable Merger Deal. Redorbit, 22a Apr. 2014. Web. 24 Apr. 2014.
Lawler, Richard. "Comcast and Time Warner Cable on Why Their Merger Is a Good Thing: 'Big Isn't Bad'" Engadget. N.p., 8 Apr. 2014. Web. 22 Apr. 2014.
"Natural Monopoly." Welcome! N.p., n.d. Web. 20 Apr. 2014.
Peralta, Eyder. "Reports: FCC Poised For Changes To Net Neutrality Policy." NPR. NPR, 23 Apr. 2014a. Web. 24 Apr. 2014.
"PUBLIC INTEREST BENEFITS SUMMAR." Comcast. Comcast, n.d. Web. 23 Apr. 2014.
"Sherman Anti-Trust Act (1890)." US National Archives, n.d. Web. 16 Apr. 2014.
Stelter, Brian. "Comcast Agrees to Buy Time Warner Cable for $45 Billion." CNNMoney. Cable News Network, 13 Feb. 2014. Web. 23 Apr. 2014.

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