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Network Effects and Antitrust Law: Predation, Affirmative Defenses, and the Case of U.S. v. Microsoft MAX SCHANZENBACH* CITE AS: 2002 STAN. TECH. LAW REV. 4 http://stlr.stanford.edu/STLR/Articles/02 STLR 4 I.

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The Sherman Act, enacted by Congress in 1890, remains the basis for most of our nation's antitrust laws. It prohibits all agreements and conspiracies in restraint of trade and commerce. These prohibited restraints include price fixing, market allocation, boycotts, bid rigging and tying agreements.

One of the most significant cases was filed by the United States government in 1921. This case resulted in a consent decree in which Kodak agreed not to sell private-label film and would only sell its own film. Kodak also agreed to a consent decree in 1954 with the United States government.

Quite simply, the network effect is a situation where the value of a network connection for a user depends on the number of other users already connected. The more participants, the more expensive the network, as in the case of, for example, users of social networks.

The core of U.S. antitrust law was created by three pieces of legislation: the Sherman Antitrust Act, the Federal Trade Commission Act, and the Clayton Antitrust Act.

ANTITRUST LAWS Common examples of these violations include: "Price fixing" includes any agreement by competing vendors that establishes an agreed price or otherwise determines how the price will be set among those vendors. The agreement to fix the price may occur at the wholesale or the retail level.

The Bottom Line Through both civil and criminal enforcement, antitrust laws seek to stop price and bid rigging, monopolization, and anti-competitive mergers and acquisitions.

ANTITRUST LAWS Common examples of these violations include: "Price fixing" includes any agreement by competing vendors that establishes an agreed price or otherwise determines how the price will be set among those vendors. The agreement to fix the price may occur at the wholesale or the retail level.

The Problem with Antitrust Laws Wrong Conception of Coercive Monopolies. ... Antitrust Laws Are Vague. ... Antitrust Makes Mergers And Acquisitions Difficult. ... Antitrust Laws Take The Power Away From Consumers. ... Government Collusion and Corruption. ... Antitrust Laws Are Against Innovation. ... Related Articles.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232