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40 votes

Why do corporate mergers require the approval of foreign governments?

When American companies do business on a multi-national basis, they have to comply with the business regulations in all of the countries where they do business. Anti-trust regulations are among those ...
ohwilleke's user avatar
  • 221k
21 votes

Why do corporate mergers require the approval of foreign governments?

The answer is that corporate mergers do not require the approval of foreign governments. If two American companies decide to merge, no other government can prevent it. But they can prevent the ...
Mike Scott's user avatar
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18 votes

Can earthquake insurance companies legally ask about "Other Insurance"?

Insurance is not gambling Insurance covers your loss. Insuring with multiple insurers does not entitle you to make a profit. This has been a fundamental part of general insurance law from the ...
Dale M's user avatar
  • 213k
18 votes

How is the cost of a software service determined?

There is no fixed rule for this. Every situation is different, and of course there is nothing specific to software in there. It is very much a matter of intent. For example, negative profits are no ...
gnasher729's user avatar
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17 votes

Is Price Discrimination in the Software Industry legal in the US? (Sneakers resale software case)

The US federal Robinson-Patman Act applies only to a sale of tangible goods to different retailers at different prices in interstate commerce. See "Robinson-Patman Act" at investopedia. ...
David Siegel's user avatar
13 votes
Accepted

Is Price Discrimination in the Software Industry legal in the US? (Sneakers resale software case)

There are a couple of unusual things going on here. Users buy and sell licenses at way-below-retail prices. This is very odd in the software world. Software licenses are almost never assignable and ...
bta's user avatar
  • 1,334
12 votes

Is Price Discrimination in the Software Industry legal in the US? (Sneakers resale software case)

Jurisdiction: england-and-wales If you are purchasing as a consumer (which is implied from your tag) then this could amount to bait advertising under the Consumer Protection from Unfair Trading ...
JBentley's user avatar
  • 8,330
12 votes

Is Facebook a monopoly?

Facebook is not a monopoly. There are other social media firms out there, it did not achieve its market share primarily through anti-competitive conduct, and there are almost no formal barriers to ...
ohwilleke's user avatar
  • 221k
6 votes

How is the cost of a software service determined?

Realistically, this definition doesn't work - it works for manufactured goods, but since almost all the cost of software is in development and there is little marginal cost, it's impossible to assess. ...
pjc50's user avatar
  • 1,127
6 votes

Is it legal in the US to bundle renting a car parking space and buying insurance for the content of the car?

Is it legal in the US for a company that rents out car parking spaces, to bundle the renting of a parking space to buying insurance for the content of the parked car? Yes. Honestly, I'm a little ...
ohwilleke's user avatar
  • 221k
6 votes

Why is a price match not price fixing?

Price fixing is a agreement between competitors not to undercut each others' artificially high price. That type of agreement is not present in the scenario you describe. You have not alleged that: ...
Jen's user avatar
  • 59.5k
5 votes

Is it illegal to operate a business at a loss to gain market share?

According to the FTC which is the main U.S. federal government agency charged with administering federal anti-trust laws: Can prices ever be "too low?" The short answer is yes, but not very ...
ohwilleke's user avatar
  • 221k
5 votes

Is it illegal to operate a business at a loss to gain market share?

Yes. The practice you're describing -- raising prices after driving competitors out of business by selling below cost -- is known as "predatory pricing," and it is a classic monopolistic ...
bdb484's user avatar
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4 votes
Accepted

How do professional sports leagues in the U.S. avoid anti-trust action?

Well baseball for historical and frankly crazy decisions of SCOTUS is exempt because it is not a business that crosses state lines (by definition of the court if by no one else's). The other sports ...
Dale M's user avatar
  • 213k
4 votes

Is there a way for participants of an industry to discuss how to keep a market healthy without it being considered collusion?

Under US law, referring to the rather broad range of anti-trust legislation, regulation and case law, the most important issue is whether there is a conspiracy. A public discussion of some policy ...
user6726's user avatar
  • 215k
4 votes
Accepted

Can Huawei sue Google for refusing to offer its services like Google Map?

No Let's assume that Google and Huawei had a valid contract that obliged Google to provide certain services and failing to provide them would be a clear breach of contract that would normally entitle ...
Dale M's user avatar
  • 213k
4 votes

Does antitrust law allow for a monopoly that strictly benefits consumers?

There is no provision allowing monopolization "for the good of the consumer", regardless of your standards for judging that. The law simply says Every contract, combination in the form of trust or ...
user6726's user avatar
  • 215k
4 votes

How is the cost of a software service determined?

Anti-trust is not a very powerful tool any more in the US, especially around pricing. This is really just an accounting issue, because software license revenue recognition is different from services ...
Tiger Guy's user avatar
  • 7,139
3 votes
Accepted

Can contractors in the USA publicly encourage each other to charge more?

Under Section 1 of the Sherman Act, there has to be an agreement for there to be price fixing. If the parties do not agree to engage in price-fixing or other anti-competitive behavior, there is no ...
bdb484's user avatar
  • 60.7k
3 votes

How is the cost of a software service determined?

which obviously would be a breach of anti trust laws. I'm not sure it's obvious at all. Anti-trust law is complex and subtle. In the US, selling below your costs is only a violation of anti-trust law ...
Charles E. Grant's user avatar
3 votes

Is it legal in the US to force you to buy insurance (as a bundle) for something you already have insurance for?

Each of the 50 states plus non-states has their own laws, but there is nothing general about contract or other law in the US that forces a rental facility to accept customers who don't have / won't ...
user6726's user avatar
  • 215k
3 votes
Accepted

Can a city enforce antitrust laws in the US?

States can, and some states do, have "mini-Sherman" anti-trust laws of their own. Whether a city could have such a law would depend on whether the state had delegated that power to cities. I haven't ...
David Siegel's user avatar
3 votes
Accepted

being forced to use Express Scripts (mail order delivery) on perscriptions

It is legal and quite common. Your choice as consumer is at the point of selecting insurance company. If you dislike ES enough, that would be a reason to select a different insurance company. It would ...
user6726's user avatar
  • 215k
3 votes
Accepted

Am I experiencing an anti-trust violation?

Short Answer It might or might not be an anti-trust violations depending upon the states where the employers and employee are located. But, as a practical matter, it is almost impossible for an ...
ohwilleke's user avatar
  • 221k
3 votes
Accepted

Can consumer Bob be gagged about a suit against Big Co. revealing major antitrust and policy-driven fraud causing widespread public safety issues?

I am not aware of any cases with a fact pattern at all like this in which there has been an injunction against an individual publicizing accusations against a company. In each of the cases Bosley ...
David Siegel's user avatar
3 votes

How are government actions held accountable to constitutional promises?

Generally speaking the "blessings of liberty" phrase from the preamble to the US Constitution is not relied on for anything. It does not grant additional power to Congress or the Federal ...
David Siegel's user avatar
3 votes

Can the US break-up a foreign company (specifically Bayer) after it has merged with an American one due to an increase in market power?

Starting at the top, a company can be restructured ("broken up") under anti-trust laws (classical examples: Standard Oil, ATT), however restructuring is not common. Approval of a merger does ...
user6726's user avatar
  • 215k
3 votes
Accepted

If Microsoft and Activision Blizzard are both based in the USA, how does the UK have standing to block the merger?

The basis is set out in the Final Report of the Microsoft / Activision Blizzard Merger Inquiry, in particular Chapters 1 (p24) and 3 (p35-36). The role and powers of the Competition and Markets ...
alexg's user avatar
  • 7,000
3 votes

Are Technological Standards bodies required to be approved by the government?

Standards-setting by industry groups is not inherently anti-competitive and these groups do not require a licence from the government to operate. They are a prototypical example of "private ...
Jen's user avatar
  • 59.5k

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