Doing business 8th

Antitrust-

Guangdong Cheng

Case Study Backgrounds: o U.S. Beer 30% / Mueller Beer 20% / Course Beer 20% / Micro Beers / Private label / Foreign Beers (Mi + P + F=30%) Frothy Beer o Awsea (Australia) No.2 o Gene from F to Aw o Sara want to meet with Pop o U and A is competitors Topic o Not to talk about current beer price Even two competitors talk about price, it is illegal in the U.S.-fixing price o Joint venture-a new product They could talk about the price of the new prodcut o Not to talk about how to push other out o Merger Advantage U-technology/market share Disadvantage The dispute of the technology (with F) Bad finance failing company Low barriers to entry Efficiencies-technology License agreement o Own a right of technology to make others use it Restrain of Trade o OPEC-Cartel Monopolies o AT&T / Microsoft We cannot buy applications under windows if we choose windows. It is illegal to use monopoly power to pull others out of the market in the U.S. But it is legal to be a monopoly. Mergers

o AT&T and T-Mobile were stopped from being merged by Joint o o o the government. Venture an entity formed between two or more parties to undertake economic activity together Chinese Joint Venture. If M and C want to cooperate a new product but cooperate independently is a joint venture

10/26/2011 2:35:00 PM U.S. Statues Sherman At in 1980 o Sec1 prohibits agreements in restrain of trade o Sec2 prohibits monopolization o Sec7prohibits mergers that substantially lessen competition M U & C have meeting to raise the price-illegal o Go to jail in the U.S.

Guangdong Cheng Cartels illegal on their face, regardless of parties market power Exclusive clause is illegal o No professor can work outside Kaplan Agreement is the key to identify whether price fixing is illegal-sec 1 Horizontal agreements Vertical Agreements Vertical Restraints Group Boycotts Illegal

10/26/2011 2:35:00 PM how to figure out one seller relevant o product market interchangeable products e.g.: NBA o geographic market 65%+ Tying-two products Kodak copies and paper It is illegal to force somebody to buy

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10/26/2011 2:35:00 PM Defenses in merger cases IP our employment/ facilities + CEOs idea + team/ applied for the license, frothy has no action o Low barriers to entry Law-no license Costing Potential Location 1.transport raw material/one thousand dollars/ 2.Worker 3. hospital Capture market Environment: OSHA( occupational safety and health act) Recordkeeping system is good BPOU Powerful customers(no) Efficiencies Failing company wont go bankruptcy Cartels-joint ventures-mergers Section 7 of Clayton Act o Joint ventures with Course/Mueller to develop new technology / reduce their price o Exclusive liecsne for US. Beers is te best choice o o o o Is the workplace a safe and healthy environment How bad is the contamination How much would it cost to clean up the property-CPO not much

10/26/2011 2:35:00 PM Exclusive license and non exclusive license Asset or share purchase Indemnity for breach of representations and warranties Indemnity for liabilities Escrow

10/26/2011 2:35:00 PM Risk/high return USB-or buy pattern Merger Asset acquisition Joint ventures Exclusive license Non-exclusive license Distribution Awesea Merger Distribution Joint ventures Non-exclusive license Exclusive license Asset Acquisition

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