An Antitrust Basically Controls or Regulates Monopolies, Cartels, and Similar Organizations
Autor: bobstan • April 13, 2014 • Essay • 405 Words (2 Pages) • 1,013 Views
An antitrust basically controls or regulates monopolies, cartels, and similar organizations to keep them from having unfair competition. They then become investigated when a unfair competitive practices on commerce occurs (McConnell,2012). The article I chose is titled Price Probe. It is basically about baby formula being over priced in china and other foreign countries by major companies like Nestle. It is said by the Beijing Review that the National Development and Reform Commission is investigating many infant formula producers in the foreign area for allegedly having fixing prices. The NDRC have evidence that these major companies have been increasing there prices to 30% in the Chinese market since 2008.
What made these major companies succeed with increasing their prices for the formulas was that there was also concerns about the safety of domestic milk powder after a melamine-tainted milk powder scandal in 2008 have made china even more anxious to get the formula from the foreign companies just to be on the safe side (Beijing, 2013). The Peoples bank of China has arranged a $1.94-billion, re- lending quota for all the troubles and this money will be divided back to the country in small and micro- businesses, agricultural sector, rural areas, and farmers.
After all my research and findings I have noticed that monopolies and oligopoly are not always bad for society. There are so many disadvantages for the society for instance; there are less completive markets than there are higher prices. The firms benefit from the monopolies because they can charge higher prices and make more profits out of it rather than the competitive markets. An example of a good way that monopolies can benefits society, are utilities such as water and electricity. Imagine if everyone in your city had to drive to the river or lake in order to get water to bathe, cook, and clean. That would be hard for those who did not live near the source and if you live in the city many
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