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COE 390 Seminar By Dr. Aiman Al-Maleh Group Presentation.

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Presentation on theme: "COE 390 Seminar By Dr. Aiman Al-Maleh Group Presentation."— Presentation transcript:

1

2 COE 390 Seminar By Dr. Aiman Al-Maleh Group Presentation

3 Anticompetitive and Antitrust
Commerce Anticompetitive and Antitrust BY Ahmad Al-Sharedah Sadiq Hasan

4 Anticompetitive concepts
Outlines Introduction Anticompetitive concepts Antitrust Standing USA vs. Microsoft

5 Introduction B A $ 2.00 What Do You Think The Anticompetitive Is ?
$ 2.25 $ 2.25

6 THE ECONOMICS OF COLLUSION
Anticompetitive concepts THE ECONOMICS OF COLLUSION SOCIAL NORMS AND COLLUSION

7 THE ECONOMICS OF COLLUSION
Anticompetitive concepts THE ECONOMICS OF COLLUSION Anticompetitive Competition. 1838. Production quality and price to the monopoly level.

8 Anticompetitive concepts
SOCIAL NORMS AND COLLUSION Richard McAdams said “informal social regularity that individuals feel obligated to follow because of an internalized sense of duty, because of a fear of external non-legal sanctions, or both.” personally enforced norms community enforced norms

9 Antitrust Standing Antitrust law is not designed to protect businesses from the workings of the market, but rather to protect the public from the failure of the market.

10 EXAMPLE USA Vs. Microsoft

11 Antitrust Actions By Microsoft
OUTLINE What is Microsoft Antitrust Actions By Microsoft Actions Against Microsoft Positive Effects

12 Windows Operating System
What is Microsoft Windows Operating System Popularity : 80 %. One Of The Largest Companies Complain in Court

13 Install OS exclusively
Antitrust Actions By Microsoft Install OS exclusively Programs AND Applications Excludes Competitors

14 Antitrust Actions By Microsoft
Browser War Netscape Navigator Popularity 80% Reduced to 30% Microsoft IE Popularity 70%

15 Antitrust Actions By Microsoft
FREE Internet Explorer Gain: Increase Demand Excludes Competitors

16 Court Decided Microsoft Guilty
Actions Against Microsoft Court Decided Microsoft Guilty Possible Separation Rather: Restrictions

17 Even Unethical : have benefits
Positive Effects Even Unethical : have benefits Real Winner: CUSTOMER Improve Quality Free IE

18 Conclusion Money Vs. Ethics

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