Antitrust laws, Research paper help

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Antitrust laws were essentially created to stop businesses that got too
large from blocking competition and abusing their power. Mergers and monopolies
can limit the choices offered to consumers because smaller businesses are not
usually able to compete. Although free and open competition ensures lower
prices and new and better products, it has the potential to significantly limit
market diversity.

Review the following examples of how mergers and acquisitions have affected
the way in which companies do business.

Prepare a research paper in APA format that demonstrates your analysis of
the international legal issues that are involved in both examples.

Submitting your assignment in APA format means, at a minimum, you
will need the following:

  • Title page: Remember
    the running head and title in all capital letters.
  • Abstract: This
    is a summary of your paper, not an introduction. Begin writing in
    third-person voice.
  • Body: The
    body of your paper begins on the page following the title page and
    abstract page, and it must be double-spaced between paragraphs. The
    typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black
    type. Do not use color, bold type, or italics except as required for APA
    level headings and references. The deliverable length of the body of your
    paper for this assignment is 5–7 pages. In-text academic citations to
    support your decisions and analysis are required. A variety of academic
    sources is encouraged.
  • Reference page: References
    that align with your in-text academic sources are listed on the final page
    of your paper. The references must be in APA format using appropriate
    spacing, hang indention, italics, and upper- and lower-case usage as
    appropriate for the type of resource used. Remember, the reference page is
    not a bibliography, but it is a further listing of the abbreviated in-text
    citations used in the paper. Every referenced item must have a
    corresponding in-text citation.

Federal antitrust enforcers are
investigating whether a multinational pharmaceutical company has attempted to
minimize the impact of generic competition to one of its most profitable
prescription drugs. This antidepressant drug is the company’s best seller, with
sales last year of $2.11 billion, representing a 22% increase from the year
before.

The Federal Trade Commission (FTC)
is conducting an investigation to determine whether the company engaged in
activities to prevent generic alternatives to the prescription drug from
entering the market. Specifically, the FTC is challenging a practice among
brand-name and generic drug manufacturers to agree to delay the introduction of
the lower priced generic drugs to the market.

Answer the following questions:

  • Why would the drug maker want to stymie generic
    competition? Explain your response.
  • What types of legal barriers to market entry exist?
  • What are the possible ethical dilemmas that are present
    in this example?

Example 2

The boards of 2 major
telecommunications companies recently agreed to a $16 billion merger that would
create the world’s largest telecommunications company in the world. Although
some agree that the synergy between these companies could be dynamic, others
feel consumers could ultimately pay the price for the merger, depending on
which company becomes dominant in the various service areas.

Answer the following questions:

  • Why do you think consumer advocates have expressed
    concern over such merger possibilities?
  • Other than pricing, what are some pitfalls that
    consumers might have to deal with when 2 major companies merge?
  • What are the possible ethical dilemmas that are present
    in this example?

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