Based on The Anti Trust Laws, How would you expect the federal government to react to the ff situations"?

a.) A college Bookstore deliberately reduces prices until its only rival is driven out of business. The bookstore then raises its prices. b.) Real estate firms meet in an open meeting and agree to charge 6 percent commision on sales. c.) Microsoft merges with Word Perfect by a stock acquisition. d.) A small tax preparation company merges with a regional grocery store chain.

Public Comments

1. Since "Anti-Trust" depends on several factors such as competition, lets examine each of your scenarios. a) The college bookstore may have driven out local completion, however since there are many sources of competition to the local bookstore (internet, the next town, etc.), the government would do nothing. Competition still exists. b) Since commissions are competitive, then the government would do nothing to stop this practice. But like the example above, if the real estate firm could affect every real estate firm in the universe from a singular decision, then it could possibly be subject to Anti Trust legislation. c) Not a problem, since you're Bill Gates and you can do anything including becoming the world's greatest pirate! However, the government will try (and did try). d) Not a problem! Competition would NOT be affected by this merger .