Law assignment on competition and antitrust law between the UK and the USA
Task: What are the factors that influence competition and antitrust law between the UK and USA What is the comparative point of evidence between the competition law practices between the UK and the USA Elaborate on the topic in your law assignment.
Chapter 1: Introduction to the law assignment
Competition law promises to maintain competition in the complex business market by enforcing anti-competitive practices in the organization. International trade law and competition law supplement each other as markets extend beyond national borders. The countries need to come up with an international regulation to prevent unfair business practices from mergers and acquisitions that contribute to demoting competition. The antitrust laws and other competition laws of the different countries are known to be effective against monopolistic decisions and unfair trade practices in the business environment. This law assignmenthas highlighted the competition and antitrust law between the UK and USA to understand their competition regulations.
The UK's competition law and USA Antitrust law are regarded to be the most influential systems in terms of competition regulation. Antitrust laws are generally national but the issue of competition goes on through an international platform that gives rise to adverse economic effects around multiple jurisdictions. As per the law assignment, Google's policy breached the competition law over in-app payments within different mobile stores in the UK due to a suspect in anti-competitive conduct over mobile technologies in the US. The UK has brought up radically transforming policies that have varying proportions from that of antitrust laws of the USA as it focuses mostly on the consumers. Both of the case laws lie on the unreliability of concentration of the borderless global business environment due to the existence of excessive economic power. The history dates reveal the existence of the Roman Empire and after the 20th century that encoded global recognition through the antitrust practices over various sections of the company, especially in the steel industry, oil industry, and railways. During that recognition, USA Oil and Steel had a greater monopoly over the market giving them control over goods and pricing. In the United States, the antitrust law was incorporated for economic and civic purposes to foster a compatible environment with democracy as well as to protect consumers from the challenges of monopoly pricing. According to a law assignmentreport, the anti-competitive practices of the UK e-commerce giant such as Amazon is hurting competition by enforcing unfair advantage to their retail businesses and using their services over third-party merchants. By having a decentralized economy in many small businesses, the competition and antitrust law between the UK and US can comply with the respective democratic self-governance to ensure healthy competition within the businesses.
1.3 Problem statement of the law assignment
The foremost concern with regards to antitrust laws of the UK is that it prevents the organizations from growing beyond a certain point and restricts innovation by resulting in technological development stagnation. They often distort politics and enforce an overwhelming power to the general public by narrowing their corporate interests. Mergers in the United States as per the law assignmentare regulated through the Clayton Act which restrains a barrier in the agreements and transactions between businesses to create a monopoly and use unfair methods in competition. This competence gives rise to issues affecting the UK market under the jurisdiction of the Competition Commission and Office of Fair Trading (OFT). Though both the antitrust and competition law between the UK and USA are considered influential systems, they deal with cross-border competition issues especially on a sector-specific basis even after the establishment of the World Trade Organisation. On the contrary, competition law dictates the market be built only of a multiplicity of competitors who should be equal in position with each other and just gain adequate benefit from the fair conditions of the economic activity. The constitution of the UK as per the law assignmenthas very poor development perspectives on the issues of free competition that is enforced through the regulating competition law of the country and it tends to create discrepancies in the incursion of digital commerce. Recognition of online content and challenges pending to guarantee market access opportunities are some of the wide scope problems within the competition practices between the UK and US.
1.4 Aim of the law assignment
The law assignmentaims to review the competition and antitrust law between the UK and USA.
To identify the factors that influence competition and antitrust law between the UK and USA
To determine the issues that arise between the competition and antitrust law of the UK and the USA
To suggest a revision of the existing anti-competitive practices within the competition and antitrust law between the UK and the USA
To formulate a comparative overview of competition law practices between the UK and the USA 1.5 Research questions of thelaw assignment
What are the factors that influence competition and antitrust law between the UK and USA
What are the issues that are coherent with the competition law practices in the UK and USA
How to revise the anti-competitive practices of the competition and antitrust law between the UK and USA
What is the comparative point of evidence between the competition law practices between the UK and the USA
1.6 Hypothesis of the law assignment
H0: Competition and Antitrust laws between the UK and USA prevent monopolistic and unfair trade practices
H1: Competition and Antitrust laws between the UK and USA do not prevent monopolistic and unfair trade practices
1.7 Rationale behind the law assignment
The rationale of the law assignmentcovers the true aspect of competition and antitrust practices between the UK and US acting to protect the democratic self-governance and increase the sales of the market by eliminating competitors. Antitrust law also reduced the illegal practices of courts and federal law agencies that aim to accomplish consumer welfare goals both for the UK as well as the US. The anti-competitive practices have created such an environment, where the multinationals can make use of their market power and the large size of the firms to capture the small estates. This tends to create difficulties for small businesses as they have to attempt to file lawsuits against the anti-competitive practices enforced by the large firms. On the other hand, the Competition act was put in place in 1998 by prohibiting agreements on free trading policies and competition between enterprises to ban abusive behavior of the dominant market. As the UK competition law prohibits and guards market dominance through a single firm, the geographical extent of the market also influences certain entry and barriers to exit such as the bargaining power of consumers and competitor's position. For instance, competition law prevents excess prices imposed on consumers and ensures quality products are delivered to the consumers by promoting competition. It is of utmost importance to understand in the law assignmentthe updated framework of the Competition Act enacted in 1998 that identifies and deals with restrictive business practices and abuses in a dominant market position.
1.8 Significance of the law assignment research
The significance of the law assignmentresearch revolves around the conceptual understanding of the competition law and antitrust law between the UK and USA that is crucial to enhance market power to raise prices above the competitive levels. It is increasingly important to understand the practices of both the law as it guards against the rise of cartels and prevents monopolies or mergers to impact the consumer exploitation level and unfair competition practices in trade agencies. In addition to this, the USA focuses on the independent agencies that are a part of the systems of balances and checks to be enforced against the political mandate of competition and antitrust practices. Both the UK and USA competition and antitrust actions help the organizations to maintain and expand monopoly powers over the market through improper means. Their antitrust practices continue to move closer to the areas of jurisdiction and emphasis the economic principles of horizontal mergers to attempt monopoly and exploit dominance. Monopolisation has a special meaning in the UK competition law as it protects the abusive nature of the dominant position in any part of commerce agencies, unlike the USA antitrust law that prohibits certain behaviors such as predatory pricing, excessive dealing, price discrimination, and products trying and failing to comply with the essential facilities of the business. The most obvious agreement uncovered in the law assignmentresearch study is the emergence of horizontal agreements that shall be endued by the companies about the same product or the same stage of the production chain in the relevant market.
1.9 Summary of the law assignment
It can be summarised from the above that competition law in the UK and antitrust policies in the US have varied differences as well as notable similarities. The role of both the lawsuits has given enough evidence through their rationalistic approach to preventing dominance and monopoly in the US and UK markets. A detailed understanding of competition and antitrust practices has also affected trade, competition, and commerce both in the UK and USA as defined in the research objectives. The chapter in the law assignmenthas also analyzed a brief overview of the problem statement where competition law and antitrust practices distort policies and prevent unfair trade practices as evidenced through the research hypothesis.
1.10 Structure of law assignmentdissertation
Analysis and discussion of findings
Conclusion and recommendation
Chapter 2: Literature review
The literature review section of the law assignmentaddresses the key sources on the topic and discusses the sources in conversation with the synthesis evidenced in the outcome of the study. This review section has investigated the credible sources of competition law and antitrust law between the UK and USA that aim to promote monopoly and prevent unfair trade practices. It has included a detailed overview of the antitrust practices that are enforced in the UK and USA with examples of some case laws. The chapter of the law assignmenthas also discussed the issues that are coherent in such antitrust practices and proper suggestive actions are further evaluated in the section to combat the ill-effects of competition in the wide business markets.
2.2 Area of conflict between UK and USA on Competition and Antitrust law
The majority of consumers never family or use the term anti-trust law but enforcement of these laws can save consumers millions and even billions of dollars in a year. The Federal government enforces three major federal antitrust laws in the United States and many states in the US also have their anti-trust law. These laws as per the law assignmentare established to prohibit business practices that unreasonably deprive consumers of the benefit of competition which results in high prices for products and services. Hence in simple terms, antitrust law protects free and open competition. At the broadcast level antitrust law profit business practice that is on it is in a bill that deprived consumers to achieve the benefit of Competition. Since Competition is a healthy aspect of the market that reduces the cost of different products and services and increases supply hence any activity that reduces this competition is considered to be a criminal punishment according to antitrust law. A conflict of jurisdiction among nations over the application of different economic policies towards regulation like antitrust law inevitably comes when international trade links in the world get close. As per the law assignmentbased on the type of industry and companies’ regulation policy in nation shoot and sometimes should not defer wanting another jurisdictional primacy. For the UK also anti-competitive behavior is prohibited under chapters 1 and two of the competition Act 1998 along with under articles 81 and 82 of the EC treaty. For instance, implementing monopoly and abuse of marketing power comes under civil law by chapter 2 Prohibition of competition act. However monopolies are not truly illegal in the market in the context of the UK as per the law assignment, only it is illegal to engage in prohibited acts and abuse of monopoly power. For instance, airline manufacturing companies are considered to be a monopoly market and only a few numbers of competitors exist, the same as the luxury market. The majority of luxury brands are owned and supplied by only one company which is Luxottica. However Luxottica is not the UK or US-based company, it is an Italian-based company hence the jurisdictions are different for the company. In the US market the three laws that are mostly covered antitrust regulation in the market. These are the Sherman antitrust act, Clayton act, and finally Federal Trade Commission Act. The Sherman Act also makes it a crime to monopolize any part of interstate commerce. An unlawful monopoly exists when one firm controls the market for a product or service. Additionally, after Brexit as per the law assignment, the UK competition policies had been greatly impacted and the prohibition on an agreement that restricts Competition remained unchanged following the end of the implementation period under which drawl agreement. The EU – UK trade and cooperative agreements include a commitment by both parties to maintain effective competition law to address anti-competitive agreements and to stop the abuse of dominant position essentially maintaining the status quo of the UK competition regulations. Hence for the UK, the TCA includes a commitment to maintaining effective merger control rules that address significantly anti-competitive mergers along with antitrust law to control regimes followed by Brexit.
Antitrust law as per the law assignmentis also referred to as competition law, or regulation developed by the US government to protect consumers from predatory business practices. Some of the objectives of these laws or to present practices having an advert effect on competition, to promote and sustain competition in the market, to promote the interest of customers, and to ensure freedom of trade.The UK and US governments or in pursuit to increase the economic efficiency of their country which is acknowledged by the liberalization privatization globalization era. Currently the flourishing US and UK economy has been witnessing aggressive competition in almost every field. Especially after Brexit as per the law assignment, the UK economy is trying to increase the level of competition to promote innovation in the market. In contrast to the objective behind developing competition law, another law has also been seen for the UK which creates an area of conflict while dealing with different traits related to the US. According to the law assignmentthis law is called intellectual property law which is aimed to protect research and development investigations carried out by an investment firm from being used by companies to produce similar products. In other words, intellectual property regulation gives the right to a company to hold something unique that they have created through their decision development which can give them a competitive advantage. Especially in the market, each company tries to produce some degree of differentiation through which customers can uniquely identify them from the list of competitors. Intellectual property law gives the ability to hold certificates of assurance on something that will not be used by its competitors. On the contrary antitrust law restricts any practices that can prevent the increment of competitive force in the market. Hence under this section of the law assignment, two opposite regulations create areas of conflict in the market. Initially, competition law involved the formulation of a set of policies that promote competition in the local market and aim to present anti-competitive business practices. However intellectual property gives the owner the right to exclude others from using any invented subject matter for a limited period. An example of such intellectual property regulation can be seen in a company like Gillette which prevented its product from being used by its competitors for almost 75 years. After the period ended to renew the same regulation, the company had taken around two years, and within that time due to anti-trust law, several other companies launched similar category products in the market. Hence it can be said that if intellectual property rights had given Gillette company the right to protect their innovation for the entire lifetime of the product, then antitrust law would not have been applied and new competitors could not be seen in the markets. However, antitrust law does not oppose intellectual property rights because antitrust law only focuses on different practices or actions that can present competition. Hence actions like local competitors bind together to fix a common price in the market allowing a reduction in competitive force and linear control over the market. This means that supply will be limited in the market along with prices will not get reduced. Those actions are considered to be illegal under antitrust regulation as per the law assignment.
2.3 Issues between the competition law and antitrust practices of the UK and USA
The competition law and antitrust practices between the UK and USA creates a barrier in monopoly and dominance over the greater economy. One of the concerns of antitrust law as per the law assignmentof the USA is that it takes away the power from the consumers which are due to the greater interests of the government agencies on the consumers rather than the individual perspectives of the consumers. The government officials believe that their expensive law enforcement and utopian regulations are somewhat in the best interests of the consumers and are not maintained by the consumers. While the customers elect the officials of the UK government once every four years, they try to vote for products each time when they visit the market and unfortunately makes the antitrust law subvert the market mechanism . Disruptions of mergers and acquisitions as per the law assignmentare strongly the result of antitrust laws of the US as they seem to be illegal in case of buying out another company with a fair price. By restricting the growth of mergers and acquisitions, the antitrust practices impede the effective arrangement of the UK working capital. In such instances, the inefficient and unskilled managers get protected at the cost of greater economic good of the USA capital market. On the contrary, issues of free competition are the deadliest challenges in the Competition Act of UK as it indulges restriction on the trade-off practices of the government both at a legal and economic level. They restrain the effective pathway of the government to maximise consumer welfare as per their freedom of choice and avoids digitalised economy in the current texture. There are consistent challenges in relation to guarantee market access opportunitiesas per the law assignmentwithin the wide commercial field both at the national as well as international boundaries.
The competition laws which were also known as the antitrust laws in the United States of America promoted and maintained healthy competition by regulating the anti-competitive practices of the businesses that were operating. On the other hand, the United Kingdom saw a variety of changes in its competitive legislation. As per the law assignmentthe competitive practices in the business atmosphere in the United Kingdom can be dated back to the error of King Henry III. There were numerous legislations that imposed multiple penalties for the breach of these acts in the United Kingdom. The competition act in the United Kingdom introduced new sets of rules and regulations within the country for businesses to follow and maintain healthy competition in the market . Section 2 and 18 of the anti-competitive practices in the United Kingdom provide any form of agreements that distort the competition and use abusive practices to maintain a dominant position in the market. Some of the major identified issues were the lack of acceptance of these laws among the monopolist businesses that were operating in both countries. Moreover, the differences in the perceptions with respect to entry trust policies and competition laws in the USA and UK were quite large. The antitrust policy of the United States according to the law assignmentmostly focused on the consumers whereas the competition policy of the United Kingdom focused more on the industries . The core of the comparative laws and policies of both the countries majorly depended on holding excessive economic power with the government. In this specific regard, the World Trade organisation had a very active and catalytic role in boosting globalisation and opening up of borders of all the countries to increase competition within them. However, the major issues were the absence of much competition within the businesses that are operating in both countries. As compared to the Asian subcontinent in the law assignmentthe level of competition and the availability of variety in different products and services in the markets of the USA and the UK are quite less.
2.4 Anti-competitive practices in the competition and antitrust law
The antitrust law of the US restricts certain anti-competitive practices and utilises the consumer protection rules so as to prevent the failure of business in the market. As per Section 2 of the Sherman Act, monopoly is an illegal practice as the market of the USA is controlled by few big trusts and business individuals. When evaluating proposed mergers in the law assignment, the anti-competition law of the UK tends to focus more on the complaint of the competitors. On the other hand, the competition law of the USA enforces no such contracts and rejects the complaints made against the competitors so as to oppose their agreements and make them more efficient than the competitors. For instance, Kodak Case was one of the popular companies in camera and film business that had 96% share in the market before 1994 without any licences . Multiple parties filed against the unfair trade practices of Kodak and it resulted in a consent decree where they had to sell only their films but were restricted to have monopoly on the film made photos. The economics as per the law assignmentstated in the anti-competition practices of the UK is different to that of the US in response to the acceptance for theories of harm even when there is no such evidence to emphasis on the supporting theory. Such theories help to create scenarios that do not respond with the criteria of merger as enforced under the UK competitive law and USA anti-competition law. In consideration of the law assignment, the UK competition guidelines focus on the welfare of certain competitors who are severely impacted from the merger. On the contrary, the antitrust practices of the US are against this approach due to the significant number of instances needed to harm such theories in functionality. As per Section 5 of Federal Trade Commission Act, prevention of unfair trade practices is the most important jurisdiction of the US so as to cover all the areas of competitive practices and prevent such mergers . For instance, the Microsoft case in the law assignmentwas a significant antitrust case where they violated the first two sections of the Sherman Act and confronted monopoly over their browsing data and operating systems. They had to divide into several other divisions and focused on Official Secrets Act (OSA) to encode mergers and acquisitions with manufacturing software components like Microsoft office and Internet explorer. On the other hand, competition law policies in the UK formerly ignored tariffs for food so as to stabilise the fluctuations in the Competition Act of 1998. Their previous legislation was not so strong and had a lot of influence over political power. As per Section 2 of Competition Act, there are certain agreements that should be prohibited as it distorts competition. While, the Section 18 of Competition Act enforces the abuse of dominant position within the anti-competitive practices of the businesses associated with mergers and cartel formations as to be punishable under Section 190 of Competition Act. For instance, Galvanised Steel Tank Case suggests in the law assignmentthat they were involved in the supply of tanks especially for the consideration of sprinkler systems . There were three separate divisions of the company, where the third company was not involved in the cartel and had significant hints for the price bands and specific bids. As a result, they were held liable for anti-competitive practices like price fixing and wrong bidding. In order to maintain the competitive position in the market as per the law assignment, the UK Competition act delivers the best deals to their consumers and marks a uniqueness in the competition suit of the organisation.
2.5 Impact of competition and antitrust law in business
Integration of competition law and antitrust law within the business function as per the law assignmenthas helped organizations to keep an ethical business environment and maintain a positive spirit within the organizational function. For instance, competition law in the UK has generated a positive impact on their business as it helps in establishing competitive business culture and provides opportunities to organizations to improve their business practice by widening their mode of service. According to the Competition Act, 1998, organizations that deal with the same target market need to price commodities or services at fixed prices and regulate the competition for other competitors . The main aim of the UK competition act according to the law assignmentis to restrict the competition and prohibit the abuse of market and consumers. On the other hand, antitrust law helps in protecting the rights of consumers from the high competitive business practice. Both the US and UK governments have tried to take measures to form an open market to ensure a fair market. Introduction of antitrust law has enabled the governments to control the irregular activities of international business. For instance, FTC (Federal Trade Commission) that formed in 2000 has found FMC group guilty of colluding with the other company, Asahi chemical industry for dividing the market for microcrystalline cellulose. As a result of thelaw assignment, FMC has been restricted to supply any microcrystalline cellulose to any company for 10 years in the US.
It is mandatory for companies to practice compassion law and antitrust law to form compatible and dynamic markets that would encourage customers to engage with organizational activity. On the other hand, the UK government has also formed CMA (Competition and Markets Authority) to ensure the practice of Competition Act and Enterprise Act, 2002 to limit the power of marketers. Price fixing is another compelling issue that can be handled by the application of antitrust law resulting in the delivery of products within a fixed price range . It is found in the law assignmentcompanies who often regulate in the same market are often involved with price war. For instance, Apple was found guilty by the US department of justice in 2013 for fishing the price of e-books. As a result, the company has to pay $450 million in damages that impacts their reputation. Therefore, application of antitrust and competition act is essential to protect the right of not only customers but also other competitors of the market to maintain variability of the market. On the other hand, if a company fails to practice the competition act, it can generate a diverse catastrophic impact on business . As per the law assignmentif an organization is found guilty of neglecting competition acts, it can be fined up to 10% of their global sales and they also can face criminal charges and be disqualified from their position for more than 15 years. Therefore, competition law is essential for keeping away the anti competitive practice from the market and maintaining the balance in the market.
According to the law assignmentthe United States and the UK have witnessed various changes in the competitive laws and registrations in recent times which have directly created an impact on the companies that are operating in these two markets. There have been two different kinds of statutes governing the anti-competitive practices of businesses in the market: the “enterprise act 2002” and the “competition act of 1998” in the UK . These two laws have significantly created an impact on the way businesses manage their operations in these two countries. In the past, the history of anti-competitive practices in the USA can be dated back to the Sharman act of 1890, when only a handful of big trusts had major domination in the market. In section 2 of this specific act, Monopoly was illegal and section 5 prevents every unfair trade practice that was being followed by any businesses in that period of time . For instance, the famous case of Kodak where the company was known for its camera and film business and at one point in time it was holding more than 96% of the shares in the market. As per the law assignmentthe lawsuits filed by multiple parties had resulted in the consent of degree where the business enterprise was forced to sell its company and was also restricted to holding a Monopoly over the film manufactured for the photo.
2.6 Comparison between the practice of UK and US Competition law in the law assignment
The main aim of the US competition act is to restrict the anti competitive practice and stop the monopolistic and unfair trade practices. As per the law assignmentthe law promotes competition in the international market but it also ensures the prevention of market failure by protecting the rights of consumers. Previously the US market was controlled under the Sherman Act, 1890 as big trustees began to control the market and tried to establish monopoly. Section 2 of the act has prevented the development of monopoly and section 5 of the law has stopped unfair trading practices. In addition to Sherman Act, introduction of Clayton Act also aims to cover the area that was left out in the Sherman act. Section 7 of the act prevents the merger and acquisition of companies that promote anti competitive practices. For instance, Kodak was one of the famous companies that held 96% of market share in the photo producing market but it has been accused of practicing monopoly in 1994 and tried to manipulate the market. On the other hand of thelaw assignment, Microsoft is another popular company that has been accused of violating the first sections of the Sherman act as it tried to establish monopoly over browser and operating system sales.
On the other hand, the UK government has made a variety of changes in their competition law throughout the year and introduced Competition Act 1998 and Enterprise act 2002. Section 2 of the competition act prevents the formation of an agreement that has the capability to distort the competition level in the market . Section 18 prohibits the practice of dominant position to control the market. In addition to law assignment, section 190 of the Enterprise Act focuses on the merger and acquisition between organizations that have the capacity to form a business cartel. For instance, the Marine Hose Cartel case is one of the prime examples of business cartel formation accused of practicing price fixing, illegal bidding and other activities. On the other hand, Galvanized Steel Tank is another case of illegal competitive practice that impacts the reputation of the company. One of the major differences between the practice of UK and US laws is that the UK mainly allows financial sanctions while the US considers cartel participation as crime. As per the law assignmentthe US also imposes imprisonment on perpetrators but the UK imposes fines for undertaking .
2.7 Competition law theory
The theory of competition law as per the law assignmentis a field of study that helps in maintaining competition in a market by regulating the anti-competitive forces laid down by the business operators. In terms of classical economic thought, business enterprises operating in a market are supposed to develop new products and services with the help of innovative technology that will provide multiple opportunities for selection to the consumers . The level of competition that exists in a market is usually dependent on multiple factors which incorporate barriers to entry, the number of businesses operating in the market as well as the accessibility of the resources . The competition law theory as per the law assignmentpertains to the ability and performance of a business enterprise within a country to supply specific goods for a service in a market without creating an unhealthy monopoly. The Government of the United States of America and the United Kingdom has developed anti-competitive practices by regulating the business operations in the market to promote a healthy business atmosphere. According to the empirical observation that confirms the availability of resources (technology, capital and labour) and talented human resources to concentrate in a specific geographic location and develop an inter-firm relationship with a large network of buyers, suppliers and on certain occasions even competitors to gain competitive advantage in the market . The competition law theory, therefore, restricts the unattended use of available resources in the market to gain a competitive advantage by a handful of business organizations. The competition law as per the law assignmentis usually enforced with the help of public and private enforcement organizations. These competition laws are also known as antitrust clauses in the United States of America and have been exclusively created to reduce the Monopoly of certain businesses in a market. The modern competition law theory has evolved historically and has been able to maintain fair competition in the market principles within the territorial boundaries of the countries in which it has been operating. The competition law theory as per the law assignmenthas been quite helpful in understanding the constant changes and impact created on the businesses that were operating in the highly competitive environment of the UK and the USA.
According to the modern competition law theory in thelaw assignment, there are three elements that help in maintaining antitrust and developing healthy competition within the market:
Prohibition of agreements or practices that restricts unhealthy competition and free trade between different businesses in the market this also includes the factors that repress the free trade in the market by cartels
Banning unhealthy or abusive behaviour by a specific business enterprise that is aimed at dominating the market or the anti-competitive practices to monopolise the whole business operation.
Supervision of the acquisitions and mergers of large business corporations including certain well-known joint ventures as well. The supervision also incorporates all search business transactions that are considered to reduce or threaten the competitive process that inhibits the growth of other businesses in the current market .
The chapter in the law assignmenthas tried to include valuable information regarding the impact of competition law and antitrust law that will allow businesses to regulate their function in the global market. The US and UK are the two most vital markets in the global platform and it is necessary for the regulatory bodies to control the individual function of business to avoid any type of business malpractice. Gathering eligible information from reliable PDFs and journals can help in understanding the benefit of competition act and maintain anti competition agreement between organizations. However, there is a significant difference between the application of competition act in both the UK and US market and the UK emphasis more on financial sanction and US focus more on criminal charges.
Chapter 3: Methodology
In terms of law assignmentresearch work, research methodology offers the study credibility and yields reliable scientific results. In simple words, it offers the researchers a thorough strategy to stay on course and facilitate a simple, efficient, and manageable approach. This chapter has been divided into three separate parts. The first subsection illustrates the used research methods for the research work. The second subsection of the law assignmentdemonstrates the sampling framework and techniques used to extract insightful information about the research topic. And lastly, the third subsection illustrates the reliability and validity of the extracted data.
3.2 Research Methods
Philosophy: As the role of the researcher, in this case, is limited to interpretation and data collection, positivism has been the most appropriate research philosophy to extract information on the competition and antitrust law between the USA and the UK. As per the definition, positivist research philosophy only considers the factual knowledge obtained with the help of observation. Moreover, for a decade, positivism has been the most dominant research philosophy in business and management disciplines. The nature of the discussion of law assignmentresearch philosophy is quite vast and is associated with the knowledge, nature, and assumption of the study. Moreover, it also deals with the specific way of developing knowledge by gathering important data from relevant sources. In this specific regard, positive research philosophy has been able to help the researchers in formulating and collecting information and regulating it in a manner that will help in obtaining appropriate outcomes associated with the result. The positivism research philosophy as per the law assignmenthas been useful as this specific research has appropriately used the factual knowledge gained through observation and collection of data from different sources.
Approach: Usually when the researcher is following positivism, and research philosophy, the deductive approach is also followed for the research work. There is no exception for this study as well. Here in the law assignmentthe deductive approach has been followed to generalize a specific conclusion. The main purpose of choosing this research approach has been to formulate a comparative overview of the law practices of both countries. Simply by incorporating the research approach, the study has been quite successful in formulating a strategy to identify factors that have been responsible for influencing competition and antitrust law. However, in this law assignment, there was a problem where the approach limited the scope of creativities. In simple words, it has not encouraged the researcher to encourage divergent thinking. In general terms research approach is an important factor for the method of data analysis and collection in both qualitative and quantitative manner. The general plan of research approach incorporates three different types of categories detective, inductive, and abductive. The relevance of this specific research about the assessment of antitrust and competition laws in the United Kingdom and the US has been successfully carried out by following a deductive approach. The logic in this specific influence is that the premises are true and the conclusion of the final research will also be true. The competition and antitrust laws in the UK and US have been deducted in the law assignmentand tested against the observations which are present in the market and therefore justify the detective approach of the research.
Design: In this law assignment, a descriptive research design has been followed. Here, the main reason for choosing the research design is to identify frequencies, characteristics, trends, and categories. The research design of the law assignmenthas been quite successful in demonstrating the area of the research topic. Before suggesting any solution for the existing anti-competitive practices within the competition and antitrust law between the USA and the UK, it was important to understand and review the issues between them. This particular research design has been able to ensure that all the results are reliable and valid. The Research design is generally a plant that is utilized for answering the research questions which have been framed initially. In general terms Research design of the law assignmentis divided into two different categories conclusive and exploratory. A conclusive research design that is descriptive generates findings based on practical and useful decision-making while using the data that has been collected from different sources. The descriptive research design has been used for the identification of characteristics, trends, and categories in the changes that have been made in recent times regarding the competitive policies and antitrust clauses in the United Kingdom and the USA. Strategy: While formulating the research strategy of the respective research work, the researchers usually consider a step-by-step plan of action to conduct the research systematically. Depending on the research questions and objectives of the law assignment, a qualitative research strategy has been chosen to understand certain facts about the respective research topic. Even though the chosen research strategy has been successful to extract the desired outcomes, it required multiple sessions to collect authentic data.
3.3 Sampling Frame and Techniques of law assignment
Data Sources and Data Types: In this respective law assignmentresearch study only secondary data sources have been taken into consideration. One of the most noticeable reasons for choosing the data sources is that it is cost-effective. Generally, researchers do not have to spend any time, money, or effort on the data gathering phases of this study as someone already has completed the work. Therefore, it is quite obvious that this data source has been able to collect insightful information associated with the research topic. In terms of the data types, only qualitative data type has been taken into consideration as it has the potential to develop different data points. There are multiple sources of data that are used by researchers to collect and analyze the requisite information. The primary method of the data source as per the law assignmentis the most sought-after system that helps in collecting data directly from the sources. However, this specific research activity will be using a secondary source to collect the necessary information about the changes that have occurred in the antitrust laws of the USA and the UK. The data type that has been primarily used is qualitative as the information available in the secondary sources is historical that describes the different factors affecting the markets of the UK and the USA.
Population and Sampling: To ensure that a reliable method is followed throughout the research work, a simple random sampling technique has been chosen. This probability sampling technique has not only helped the individual researcher to save time but also resources. Considering the requirements of the chosen probability sampling technique in thelaw assignment, it has been observed that it requires only a minimum knowledge of the study group population in advance. Therefore, it is quite obvious that while conducting the research work, the probability sampling technique has been free from errors in classification.
Data Collection Process and Analysis Plan: In terms of collecting secondary qualitative information, authentic websites such as Google Scholar have been used. This has not only ensured the data reliability but the validity of the collected information. However, after collecting important and relevant information from articles and journals, different themes have been developed in the law assignment. 8 journal articles have been taken into consideration. Out of the 8 selected journal articles, already 4 themes have been developed. Here, the researcher has made sure that each theme is associated with the research topic significantly. For data analysis, thematic analysis has been chosen as it has provided greater flexibility. The researcher in the law assignmenthas been able to use flexible approaches for the collected data. Moreover, thematic analysis is appropriate for large data sets. This has allowed the researcher to dig into the data without any preconceptions.
3.4 Reliability and Validity of the law assignment
While creating the research design, the researcher has made sure to consider the reliability and validity of the research methods. To prove the reliability of the collected information, the law assignmentresearcher has conducted multiple sessions. As a result, a consistent result has been produced. In addition to this, to prove the validity of the data the researcher has made sure that the chosen journal articles are not published before 2018. Moreover, copyright acts have also been followed to ensure that no data source has been breached. The reliability and validity of the data source have to be maintained for the successful completion of any research activity as it ensures that the quality of the research has not been maintained. This specific law assignmentresearch activity has primarily used secondary sources for the collection and analysis of data. To maintain the authenticity and reliability of the data, the sources of data have been kept to be approved by the majority of the researchers. Moreover, the use of all the latest research articles and journals that have been published before the year 2018 has ensured that the information utilized for this specific research is the latest.
3.5 Time Plan
Table 1: Time Plan
(Source: Created by Author)
Summarizing the entire chapter, it is quite obvious that this chapter is one of the most crucial chapters as it describes the designs and strategies of conducting the entire research work. Simply by incorporating positivism research philosophy, deductive approach, descriptive research design, and qualitative research strategy, the chapter has demonstrated the entire secondary qualitative research process. After selecting 8 journal articles for the law assignment, 4 themes have been developed. At the end of the chapter, the time plan describes the time for each activity in the research work. Additionally, the reliability and validity of the research methods have been justified to make sure only relevant information is taken for the research work.
Chapter 4: Findings and analysis
This section of the law assignmenthas been effective in providing information related to the actual field-oriented understanding related to Competition and Antitrust law between UK and USA. Through this section, a detailed evaluation is done of the trade agreements in the UK and the USA as well as the different kinds of legislations that are prominent to be understood in the current context. These sections also help in developing different kinds of themes according to the objectives that have been developed.
4.2 Analysis of Findings
4.2.1 Application, comparative analysis of different perspectives of the antitrust laws of the UK and the US on global cartels
The competition laws which are also known as the antitrust laws in the USA are responsible for regulating the anti-competitive behavior by large business organizations that artificially increase the competition in the market. According to the law assignmentthe law supervises the mergers and acquisitions of large business enterprises by prohibiting unfavorable agreements that restrict free trade between other business enterprises . The UK and the USA have these laws that regulate the activities of large business enterprises for maintaining healthy competition and a fair market. Despite these laws, there are certain differences in recharge required to be considered. However, the common grounds for these laws in both countries are to stop the growth of cartels in the market. The primary and most common difference between the anti-competitive or antitrust laws in the UK and the USA is their focus on a specific segment of society. The anti-competitive laws of the United Kingdom focus more on the industries and their practices in the current market. However, the anti-trust laws of the United States of America focus more on looking after the benefits of the customers. The texts in the law assignmentlaws in the USA are largely clarified and are based on the “effects test” which is the decision of the supreme court of the country . Apart from the offline markets online businesses are also transforming and using practices and policies that severely disturb the fair practices within the market.
Some of the laws and regulations followed in the United Kingdom have been kept unchanged while it was a part of the European Union. The GDPR of the EU has triggered multiple efforts to adopt some of the practices of the United States of America in terms of its regulation that has to be implemented within its online businesses. The United Kingdom has also taken multiple steps that prevent the spreading of fake news by certain businesses as a form of unhealthy practices to create fake competition within the market. This specific aspect of the law assignmentjustifies the presence of anti-competition laws in the United Kingdom which are more focused on the industries rather than the customers which is seen in the case of the USA. Digitalization and globalization have posed a new challenge for both the USA and the UK in terms of maintaining a healthy atmosphere for businesses to perform in their markets. However, in the case of the USA the supreme court of the country has developed cooperation between various competition law enforcement agencies and has helped in the formation of (1) bilateral agreements; (2) regional agreements; (3) plurilateral agreements; and (4) different multilateral agreements. Some of these agreements exclusively focus on the mutual abbreviation between these organizations to notify any form of entry trust issues to the extent that concerns the interest of other authorities involved in the enforcement of these laws in the market. In these law assignment, the USA and the EU (the UK was the part of EU at that time) have signed numerous agreements that apply to various competitive laws for the businesses that are operating in these two countries.
4.2.2 Inefficiencies and quasi-per se rules regulating the information exchange in the UK and the US related to antitrust laws
In recent times as per the law assignmentthere has been rapid technological innovation all over the world which has exponentially improved the ability of business enterprises to process, transmit and store information. The exchange of information between the competitors situated at the horizontal level requires additional scrutiny and is usually closely related to the competitive structure of the market in which businesses compete with each other. The information related to the scrutiny of the business practices followed by certain companies in the market is usually made public in most cases. However, there have been certain efficiencies that have developed in the anti-competitive laws and policies of the UK and the USA regarding the sharing of information with other business enterprises operating in the same market. The most important factor as per the law assignmentis the level of information exchange between the regulators and the businesses have been conflicting in nature as the exchange of price-sensitive information might be able to create collisions between the businesses and the competing firms. The complex regimes of the UK and the USA regarding the anti-trust laws that have been adopted have become the prime reason for the development of inefficiencies within them. The nature of the exchange of information between the competitive businesses in the market and the pro-competitive businesses might create a reason of concern for the infringement of the antitrust laws regarding the exchange of information. In this specific law assignment, many scholars have argued about the competition laws of the US and the UK take a form of over-enforcement in the market which becomes quite difficult for large business enterprises that are investing heavily to gain a competitive advantage in the market . However, the antitrust laws and the overall regime of the USA towards this specific factor of the market are considered to be economically more efficient as compared to the relevant approach that is being followed in the country of the United Kingdom. The issues associated with the competition and antitrust laws as per the law assignmenthave been such that the courts of the United States of America have taken stern action regarding the sharing of information between the businesses that are operating in the markets. Moreover, the courts of the country have been able to successfully develop two complementary categories of entry trust analysis where it uses the exchange of price data and other important information among the competitors which in the variable is not able to develop any anti-competitive forces in the market.
4.2.3 Revising the existing anti-competitive practices within the competition and antitrust law between the UK and USA
The concept of antitrust compliance as per the law assignmentis recognized as an effective element for reducing and preventing risks associated with antitrust. One of the most important purposes of the implementation of compliance is to reduce the likelihood of violations associated with animopoly through the elimination of different risks associated with arbitrariness between sanctions and performers . According to the characteristics of the UK it can be understood that the main documents related to the concept of antitrust compliance maintain a close relationship with the business organisation and competition law. For example, how a business organisation can achieve compliance with competition law and how the company directors can maintain close relationships with competition law. The main foundation of an entry trust compliance program is developed based on overcoming the negative circumstances and identifying the amount of punishments related to the violation of antitrust laws. AS per the law assignmentthe main focus of the antitrust compliance system is on introducing a four stage approach to direct the business organizations according to the guidelines of the agency.
According to the characteristics of the United States it can be understood in the law assignmentthat the US sentencing guidelines is recognized as the main document of antitrust compliance. However the application of this document is applicable for only guidance as the provisions associated with the document or not applied primarily. Federal trade commission is another department related to the presence of an antitrust compliance program. This is applicable for reducing the overall amount of the fine. The basic guidelines of the US sentencing guidelines or not effective to mitigate the circumstances associated with misguiding the legal applications. It is not as effective as the UK guidelines to evaluate the economic methods included within the division into indirect regulation as well as direct regulation.
The Clayton Act of 1914 and Sherman Antitrust Act of 1890 contain the main pieces of antitrust legislation within the United States. Competition policy is also recognized as anti-trust and it has been introduced in the US during the late 19th century . This term as per the law assignmentwas recognized as a euphemism for the large business organizations. The trust is recognized as a legal device utilised for coordinating between multiple property owners by a unified structure of management. Business organizations or business leaders generally combine their overall interests into a singular legal entity and it is recognized as the trust. Different business owners appoint multiple trustees or a trustee for acting in their interest regarding the collective owners. Individual owners generally retain the structure of dividing sharing capacity in the trust. Criticism associated with active antitrust enforcement was introduced by the start of the 1960s. A post Chicago and the new progressive movement was introduced during the 1990s and it is running in the recent time period. The court has identified some major limitations within the Chicago style antitrust policy. Game theory is an important economic analysis tool and the analysis of this theory has influenced the Supreme Court to analyse the competitive effects associated with strategic business decisions introduced by dominant business organizations. It does not regard the claims associated with vertical restraints or monopolisation. The basic guidelines associated with the American antitrust policy and law as per the law assignmenthave taken some major steps according to the characteristics of the business market. For example, it has responded appropriately towards technological advances since the late 19th century. Technological advancement has transformed the overall business structures and it is also related to political imperatives.
4.2.4 Formulating the a comparative overview of competition law practices between UK and USA
There are two biggest consumer markets across the globe one is the European Union and the other is the United States. It is crucial to analyse the basic characteristics of both markets in the context of Competition as well as antitrust law between UK and the USA. The European Union and the United States have adopted different strategies or approaches for regulating competition within its market. The competition law as per the law assignmentgenerally introduces a more aggressive approach compared to the American regulators. For instance, according to the guidelines of the UK and the European Commission it can be understood that it has imposed a record high $2.3 billion financial find on Google in 2017 . Google was accused of manipulating its search results to the favour of its personal shopping experiences or services. It was providing comparatively higher benefit to the organizations owned by Google then its rival organizations. On the other hand the federal trade commission of the US had not identified any bias and it indicated that the behaviour of Google was for the benefit of customers. The UK and the European Union as per the law assignmenthave charged a fine of $5 billion on another case of competition law and it was related to the operating system of Google android. There are not only regulatory differences between the competition related guidelines of the UK and the USA as both regions want the rest of the globe to follow the respective regulatory models. For example both jurisdictions have introduced active promotional strategies regarding their competition related guidelines as best practices abroad. The regulatory framework of the US as per the law assignmentis focused on exporting its model for avoiding adjustment related costs that the companies of this nation might face while fighting against regulatory differences. The US is recognized as the nation having a longer history to use competition related law than the UK.
The UK and the USA have introduced competition law as well as anti-trust approaches and policies for regulating the business market in a structural manner. Both guidelines have some similarities but there are major crucial differences between the guidelines. Based on the legal characteristics of the UK and the USA it can be understood that the ideology is similar as the ideology is economic liberalisation or economic new liberalisation. This ideology is the root of the development of the world of globalisation. The main intention of the UK as per the law assignmentis to emphasise the inter alia that welfare of consumers within a market of free competition and it also accommodate the legitimate interests associated with market players. On the other hand the approach of the US is to be more flexible while intervening in the markets. Moving away from the concept of ordoliberalism is the primary concern of the American competition law theory. It is also important to understand that the legal guidelines and economic orders of both the US and the UK were broadly similar.
Both the US and the UK operate their markets according to the context of globalisation. Based on the legal guidelines of the US it can be understood that the antitrust law highlights that it is closer to the introduction of a classic new liberal economic analysis. Based on the legal guidelines it can be understood that the consumer's related strictosensu is not recognized as a crucial consideration in the US. According to the law assignmentit is totally opposed to the approach of the UK as the UK provides the highest priority towards unfair competition among the consumers and it develops the major relevant key considerations. The approach of the US in the sector of competition and antitrust matters were recognized as independent from different political interference. On the other hand, the approaches of the UK are generally open to political interference. Understanding the principle of the policymakers is one of the most important tasks as it highlights the overall potential of legal guidelines. For example, both legal frameworks provide comparatively higher attention towards establishing the legal framework in their foreign countries . Establishing the legal framework within the following countries can be helpful for both countries to make an easy penetration to the foreign business market. The approach of the US as per the law assignmentis considered as a hybrid approach among economics and law. On the other hand, the approach of the UK is also recognized as a hybrid approach but the hybrid approach is involved among politics and law.
4.2.5 Understanding the similarities of the competition law practises in the law assignment
There are major differences between the competition law practices of the UK and the US. Both nations were recognized as one of the most financially developed regions across the globe. However, there are major similarities between the antitrust and Competition related law practises in these two countries. For example the ideology is the same. Both nations promoting the concept of globalisation and the legal guidelines associated with competition law practises in these donations were developed to provide proper priority towards globalisation. Economic liberalisation or economic neoliberalism is the main fundamental of the competition law practises in the UK and the US. The legal guidelines mentioned in the law assignmentrelated to competitions in the UK were rooted in the belief that markets are unable to function appropriately in general and it is not sufficient enough to introduce proper self correcting strategies for fighting against monopolisation. On the other hand the legal guidelines related to anti-trust in the US are designed based on the major characteristics of providing comparatively higher flexibility to the market for mitigating its risks. The anti-trust related legal guidelines in the US requires comparatively higher effect based and full blown analysis associated with challenged behaviour in the context of unilateral conduct. Unilateral conduct is generally categorised into two parts such abuse of dominance or monopolisation . The approach of the US is comparatively higher dependent on continuous learning from modern economics. On the other hand the approach of the UK is dependent on assumption and presuming a competitive arm based on the structure of the industry. Empirical support as per the law assignment is one of the most crucial elements to introduce an overall competition related structure within a business market.
4.3 Discussions on the findings of the law assignment
4.3.1 Thematic analysis
126.96.36.199 Theme 1: Increasing business organizations in the UK and US market helps in securing the antitrust laws and improves competition in the market
In the US the three major Federal antitrust laws as per the law assignment are the Sharman antitrust act, The Clayton Act and the Federal Trade Commission Act, The Sherman Act mainly outlines the contracts combinations and different kinds of conspiracies that restrain the foreign trade which mainly includes rig bits, fix prices and are punishable as criminal offences. This act makes Monopoly a crime in interstate commerce. In case of any unlawful monopoly a firm that controls an entire market for any particular product or service increases their market power and establishes monopoly within the entire market. This is mainly due to negative market competition and not dependent upon the product or service superiority. This act is effective in controlling these kinds of criminal activities for stabilising effective competition in the market for ensuring long term business success. On the other hand of the law assignment, The Clayton Act is mainly a civil statute that does not carry any kind of criminal penalties; however it prohibits the mergers or acquisitions that decrease competition in the market. Under this act the government engages in challenging mainly the mergers maintaining stable price rates in improving consumer benefits. Apart from that, the US government also implements this act for notifying and trust division as the federal trade Commission who are dependent on assigning the merger or acquisition in the country. This act as per the law assignmentmainly helps in maintaining competition in the US market. Lastly, the Federal Trade Commission Act prohibits any kind of illegal or unfair methods of competition within interstate commerce and is not related to any kind of criminal penalties.
In the UK, The Competition Act 1998 is efficient in providing Chapter 1 and 2 that helps in increasing market competition and benefits the customers to a significant extent. Articles 81 and 82 of this particular law prohibit any kind of competitive behaviour that affects trade in the European Union system. As per the law assignmentin case of any issue within a particular UK market any business organizations or customer before lodging their complaint can take suggestions from the UK government officials through this contact number 08457224499, regarding the viability of the issue based on which a formal complaint can be lodged against any party through the UK government hotline 02072118888. The complete abiding of these kinds of laws are important in both the UK and the US as it helps in securing competition in the market and enhances the long term stability in the business markets. The antitrust laws in the UK and US play an important role in keeping the competition in the market alive, through which the small scale business organizations can reach the customers and doesn't have to face any kind of competition in the market for a long term context. In both countries it can be evaluated as per the law assignmentthat stability in business practices and effective long term competition in the market is completely dependent upon the antitrust laws. The antitrust laws ensure effective benefits to the consumers by maintaining the lower prices and production of New Year and better products in the market. Through this overall analysis of different legislations, it can be evaluated that in a free market competition attracts customers through price cuttings and improvement in quality of products as well as services. Better competition in the market as well as improved profit percentage helps the business organizations to find new and innovative procedures for improving their overall production. These processes result in improving product or service quality with lowering the costs, which results in providing a wide range of variety in the market where the consumer never loses in the competitive battle. Through increased competition in the market as per the law assignment, the consumers get a better facility to stabilise their interest rates for getting better quality products from a large variety of brands leading to effective customer satisfaction in both the US and UK market.
188.8.131.52 Theme 2: Anti Competitive market distort politics and prevents a company to grow beyond a certain point
In the US, An anti-competitive market is influential for the development of any country as it has different kinds of issues; however negative image development about the political government of any particular country. The unfair methods of competition or deceptive acts as per the law assignmentare mainly of two types which are horizontal conduct and single firm conduct. The illegal business organizations act together in limiting competition by putting higher prices and hindering other small skill organizations from entering a particular market. On the other hand of the law assignment, the FTC challenges which include horizontal restraints of trade are mainly the agreements that are unreasonable with the competitors based on which they engage in interacting with others leading to lack of collaboration and development of illegal arrangements including fixed prices, divide markets and rid bids. On the contrary, the single form conduct mainly is unlawful or Monopoly oriented trade where the market power cannot attain a dominant position as it is mainly performed through excluding competitors in a particular market and preventing the new entry of small scale organizations leading to increased monopoly and higher price development in an aggressive manner.
On the contrary, it is identified that buying or selling products jointly with the customers is also against the UK Competition Act 1998 as it regards Article 81 and 82 that mainly prohibits any kind of monopoly oriented development within the UK . Apart from that, a deal with the competitors for reducing productions and increasing market value for a particular product is also considered illegal that impacts in increasing the cost of products within the UK market resulting in the decrease of customer satisfaction level at a long term extent. On the other hand of the law assignment, restricting other business organizations to different unfair means and selling personal organisational products based on dealing with certain selected customers also is unfair and illegal according to the UK competition act that tries to increase different kinds of products within a similar industry for providing benefits in terms of securing cheap quality products within the entire UK. Lastly in the law assignment, having long term business contracts with the customers has been an important aspect for the business organizations through which effective business development can be secured. Depending upon the increased unfairness and illegal attitudes in any of the business markets in the UK and the US, the political reputation of both the governments decreases at a significant extent. These kinds of practices results in degradation of response from the international market. Different kinds of illegal activities result in the overall underdevelopment of a reputation of governmental politics and decrease the standpoint of any government in the international market. As a result of the law assignment, it has been evaluated that organizations engaged in any kind of unfair means for establishing monopoly, stay at a certain level and often are faced with increased penalties from the government after investigation and trial. These practices in the law assignmentdecrease the improvement of an organisation in the domestic as well as the international market. For instance; the UK government has been keen towards Amazon as Britain’s watchdog is investing on the trade processes of Amazon by analysing the actual market practices by providing unfair advantage to merchants as they pay for extra services from Amazon. The market authority of the UK has been engaged in analysing the trade practices of Amazon in the UK for analysing whether it engages in any kind of unfair means for boosting its own retail business. After investigation in the law assignmentit has been evaluated that the company has been utilising third party data for providing special favours to its logistics and delivery services that can weaken market competition at a long term extent.
184.108.40.206 Theme 3: The US has a comparatively flexible anti competitive legal structure than the UK
Anti competitive practices are recognized as a major element to maintain the overall integrity of a business market. For instance in the law assignment, major activities are included within anti-competitive practices like group boycotts, price fixing and exclusive dealing contracts as well as trade association with guidelines. Anti-competitive practices are generally divided into two parts such as horizontal conduct and it indicates the agreements between business competitors. Monopolisation is another type and it is generally recognized as a single organisation conduct. According to the anti-competitive behaviour of the UK it can be understood that it is prohibited according to chapter 1 and chapter 2 of the Competition Act 1998 . Article 81 as well as article 82 of the EC Treaty also prohibits anti-competitive behaviour in the UK. The legal guidelines as per the law assignmentgenerally prohibit abuse of a dominant position within the encountered business market and anti-competitive agreements between business organizations. A simple example can provide a clear conception regarding the strict guidelines related to the competition act 1998 in the UK business market. Sainsbury and ASDA are two popular names in the UK retail organisation and both organizations were recognized as the third and second largest UK supermarket retailers. These two organizationsas per the law assignmenthave decided to merge but the CMA has blocked the merger. It has argued that the merging incident can reduce the overall competitiveness of the British grocery industry . Consumers will be affected due to the merging incident and they have to pay comparatively higher prices and overall product quality of the organisation will be reduced. There will be a comparatively lower choice of products and reduced quality if the merging incident happens in the law assignment. Based on this incident it can be understood that the overall characteristics of the existing anti-competitive practices in the UK business market are developed based on assumption. On the other hand the basic characteristics of the antitrust laws in the US or more focused on modern day economics. The US has a comparatively more rich history to regulate the basic characteristics of the competitiveness of a business market. The guidelines of the US as per the law assignmenthave experienced multiple stages. Their entry trust legal guidelines of the US have been changing and adopting technological advancements as well as transformation of business structures. It has also changed according to the political imperatives which have reformed the regulations. The federal government of the US has understood the importance of globalisation to promote the financial structure of the nation. For instance, the primary concern of the existing anti-competitive practices in this nation is to provide a comparatively higher opportunity to the market to mitigate its own risks. For instance in thelaw assignment, three antitrust legal guidelines in the US which are the combination of the Sherman Antitrust Act, the Clayton Act and the Federal Trade Commission Act. It was not found guilty by Google in 2017 while it was sentenced to impose a record high $2.3 billion fine in the EU region for manipulating its search results according to the favour of its own shopping facilities (). The overall easy structure of the US antitrust legal guidelines can generate more appeal among the foreign countries to adopt the legal guidelines. As per the law assignmentit can provide comparatively higher advantage to the US based business organizations to enter in the foreign markets easily due to the similarity of legal guidelines.
220.127.116.11 Theme 4: Both the UK and the US focus on same ideology but there are major differences in competition and antitrust related laws
The UK and the USA are the most developed countries across the globe as per the law assignment. The financial infrastructure of both nations indicates the overall strength as well as capability of the countries. However the market competitiveness and antitrust related legal guidelines of both nations have been developed based on the same ideology and it is market neo liberalisation. It is very important to note in thelaw assignmentthat the UK and the USA have been introducing its legal guidelines for promoting the concept of globalisation. On the other hand, the basic difference between competition and antitrust related laws in the UK and the USA are their implementation process. For instance the US is comparatively more focused on learning from the scenario of the nature of critical circumstances. Based on the theory of the US it can be understood that the theory is rooted to their learning from modern economics. On the other hand, the theory of the UK is rooted in presuming competitive harm . The monopolisation legal guidelines of the US as per the law assignmentprohibit exclusionary or predatory conduct which can impact on both maintenance of monopoly power or unlawful acquisition. It can create harm on consumers. On the other hand, the legal guidelines of the UK generally punish the mere exercise associated with monopoly power. The UK has comparatively more strict legal guidelines than the US and the European Union has adopted the guidelines of the UK for regulating its member countries. For example the competition related legal guidelines of the European Union are similar to the UK guidelines. However, the US might have less global influence for setting the overall norm of the competition related regulation across the globe. As per the law assignmentit has a strong sense to promote the concept of flexibility within the encountered business market. It can improve the overall model of the business organizations to make some experiments for enhancing the overall profitability of the economy.
Chapter 5: Conclusion and recommendation
From the overall analysis in thelaw assignment, it has been evaluated that the business organizations play an important role in improving the organisation economy to a next level. It is beneficial for the organizations especially in the US and the UK to abide by the competition rules and regulations of the respective governments through which stability in Business Development can be attained. From the overall evaluation in the law assignmenta detailed understanding has been developed about UK Competition Act 1998 as well as the three important antitrust laws that are present in the US, which secure transparency for a long term business context. Thus, it can be concluded from thelaw assignmentthat the importance of market competition is a necessary aspect depending upon which the existence of a particular market occurs and the customers can get desired products within a specific range and get a variety of products in a particular market. Due to these reasons market competition is significant in both the US and the UK as both of these markets are significant for international trade and variation and competition in these markets helps in stabilising stable growth of the two markets through enhancing customer satisfaction to an increased extent. It can be beneficial for both the UK government and the US government to take necessary steps in improving their business markets by installing rigidity in monitoring the trade practices of different giant business organizations operating in both the individual markets. Thus, the stability in both the business markets can be attained through proper abiding of the antitrust legislations, through which stability in both the markets can be constructed.
5.2 Linking with the objectives of thelaw assignment
5.2.1 Objective 1: To identify the factors that influence competition and antitrust law between the UK and USA
The important factors as per the law assignmentthat influence the competition and antitrust laws between the United States of America and the UK have been the major area of concern that has been highlighted in this research. The factors that have heavily influenced the competition and the laws have been aptly discussed in the first and second findings of this specific research activity. Specific focus has been kept on the enforcement and importance of these laws on the normal businesses that are operating in the countries of the UK and the USA. The specific objectives as per the law assignmentpertaining to the antitrust laws in these two countries and the major differences existing between them have also been discussed in the first theme of this specific research.
5.2.2 Objective 2: To determine the issues that arises between the competition and antitrust law of the UK and USA
There are major similarities as per the law assignmentbetween the anti-trust loss of the USA and the UK due to the similar nature of businesses that operates in the markets of these two countries. The associated literature has been used for finding the answer to this specific objective. The issues arising between the antitrust and competitive laws of the UK and the USA have been aptly discussed in the second theme and the findings and analysis section of the research activity. Specific emphasis as per the law assignmenthas been done on the method of sharing information by the enforcing agencies in this specific scenario in both countries.
5.2.3 Objective 3: To suggest revision of the existing anti-competitive practices within the competition and antitrust law between the UK and USA
The revision of anti-competitive practices and antitrust and competitive laws in the USA and the UK was much needed due to the constant changes in the nature of operation of many businesses that are operating in these two markets. The laws of the United Kingdom as per the law assignmentmajorly focused on the method of operation of large business enterprises that are operating in the country. Whereas, the anti-trust laws of the United States of America have focused more on the needs and demands of the customers with very little regard for the profits made by large business enterprises in its markets. This specific aspect has been discussed thoroughly in the thematic analysis of the law assignmentand discussion of the findings of this specific research activity.
5.2.4 Objective 4: To formulate a comparative overview of competition law practices between UK and USA
The comparative point of evidence between the different sets of laws between the UK and the USA regarding the impact that was created on both of the businesses and the consumers has been discussed in the law assignmentresearch. The comparison and the different points of evidence between the laws of these two countries have been discussed in different sections of the law assignmentresearch in an appropriate manner. However, the comparative point of evidence highlights the similarities and differences between the antitrust laws of the UK and the USA has been specifically discussed in the findings as well as the literature review section of the law assignmentresearch. Specific emphasis has been created to display the similarities and differences between the business environment offered by both the countries and the nature of competitive laws present there.
5.3 Recommendations in the law assignment
5.3.1 Abiding by trade rules and regulations of the UK and US government
The business organizations operating in the UK and US market need to maintain the antitrust laws of the individual governments as it secures a long term business development in the country’s leading to stability in market development and improvement in better customer satisfaction. By maintaining these rules and regulations the business organizations in the UK and the US markets have the ability to ensure financial stability. However, in the case of taking unfair means to increase market dominance, the governments can be rigid in putting penalties that can decrease organisational reputation in a particular market. Thus, it can be evaluated in thelaw assignmentthat the companies need to be aware of the legislations and act according to these legislations for maintaining transparency in business practices and securing competition in a particular market.
5.3.2 Improving flexibility for small scale organizations
Both the governments of the US and the UK can engage in improving their regulations for mainly the small scale business organizations as they face complications in competing with the big giant retailers of the country. It is necessary as per the law assignmentfor both the governments to take initiative and develop effective policies that are beneficial for the small scale organizations in improving their brand value and exposure in the domestic as well as international market. Increased exposure of small scale business organizations in the international market as per the law assignmentcan be helpful for the country as increased foreign exchange can be attained by both the countries as they play a major role in international trade development. Thus, the Government of both the countries play effective rules in increasing market competition through developing the market exposure of small scale business organizations within their country and ensuring a large scale development for the small scale business organizations based on increased market competition.
5.4 Overall law assignmentresearch limitations
Shortage of time has been one of the major issues for the law assignmentresearch as an increased amount of time could have been effective in providing a more detailed overview about the complications within the antitrust laws and market competition in the UK and the US. Apart from that, lack of funding also has been another important aspect as the majority of the news articles could not be accessed due to the high subscription rates. As the law assignmentresearch has engaged in secondary data collection and analysis the use of secondary web based sources has been primary concern for the research to be transparent. Selecting these reliable data sources has been a tough job for conducting the overall research process and an increase in funding could have been better in providing a more detailed evaluation in the thematic analysis section by providing more examples of different other organizations.
5.5 Future scope of the research
The future scope of the law assignmentresearch is massive as there are different other options that are yet to be evaluated within the research process. It is necessary for the business organizations to stabilise a better understanding in the business process, through which the companies can be able to improve their stability in the market for a long term context. Future researchers in the law assignmentcan be effective in researching the different complications which the customers and the small scale organizations face due to lack of competition in the market and the construction of a monopolistic market.
I think that my personal knowledge related to the overall research process of the law assignmenthas improved to a significant extent as I have been capable of researching on my own and providing necessary information related to the antitrust laws in both the US and the UK. I think that my experience for conducting this particular law assignmentresearch will be effective for my future career as I will be able to improve my level of understanding from this particular research. I am sure that this experience of thelaw assignmentwill be helpful for me as it has provided me with enough knowledge related to the antitrust regulations and significance of market competition for a long term context.
“Competition Act 1998”
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