Antitrust Practices and Market Power
Antitrust Practices and Market Power
Introduction The purpose of this paper is to look into a case of antitrust behavior being investigated involving Johnson and Johnson and Novartis AG, and to analyze and discuss the various antitrust practices that the organizations involved are accused of utilizing. Its purpose is also to discuss how the practices being deployed in this scenario can help any of the organizations to secure market power, which is defined by the ability of a firm to profitably raise the market price of a good or service over marginal cost (Market Power). Finally, it will also discuss the impact that an oligopoly in this case has on society, and will determine whether such scenarios are helpful or harmful to consumers.
Antitrust Practices and Market Power
Antitrust law is law that promotes or maintains market competition by regulating anti-competitive conduct by companies. (Competition Law). In countries across the world, different antitrust laws have been enforced because organizations, especially those in monopolies or oligopolies, misuse their power. I am of the belief that an oligopolistic industry could either hurt or harm a society, depending on how one of the superpowers in the group uses their status as industry leader and whether they engage in antitrust behavior. There have been cases all over the world where oligopolies have different impacts on a country or region, and each would have to be analyzed individually to come to a fair conclusion. In this particular case, Johnson & Johnson (J&J) and Novartis AG were being investigated in 2011 by the European Commission (EC) for antitrust behavior because they were suspected of possibly colluding to keep a generic painkiller off the market. As presented in the article "Novartis, J&J Face EU Antitrust Investigation" (Whalen, 2011), "In markets where J&J's patents on Fentanyl have expired, Novartis's generic-drug unit Sandoz sells low-cost copies of the drug". Upon expiration
Introduction The purpose of this paper is to look into a case of antitrust behavior being investigated involving Johnson and Johnson and Novartis AG, and to analyze and discuss the various antitrust practices that the organizations involved are accused of utilizing. Its purpose is also to discuss how the practices being deployed in this scenario can help any of the organizations to secure market power, which is defined by the ability of a firm to profitably raise the market price of a good or service over marginal cost (Market Power). Finally, it will also discuss the impact that an oligopoly in this case has on society, and will determine whether such scenarios are helpful or harmful to consumers.
Antitrust Practices and Market Power
Antitrust law is law that promotes or maintains market competition by regulating anti-competitive conduct by companies. (Competition Law). In countries across the world, different antitrust laws have been enforced because organizations, especially those in monopolies or oligopolies, misuse their power. I am of the belief that an oligopolistic industry could either hurt or harm a society, depending on how one of the superpowers in the group uses their status as industry leader and whether they engage in antitrust behavior. There have been cases all over the world where oligopolies have different impacts on a country or region, and each would have to be analyzed individually to come to a fair conclusion. In this particular case, Johnson & Johnson (J&J) and Novartis AG were being investigated in 2011 by the European Commission (EC) for antitrust behavior because they were suspected of possibly colluding to keep a generic painkiller off the market. As presented in the article "Novartis, J&J Face EU Antitrust Investigation" (Whalen, 2011), "In markets where J&J's patents on Fentanyl have expired, Novartis's generic-drug unit Sandoz sells low-cost copies of the drug". Upon expiration
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