Using illustrative examples, examine why competition authorities might Essay

Using illustrative examples, take apart why competition authorities might be concerned about the way large companies comport - Essay ExampleIt has been evident that many large firms indulge in unfair competition to grow advantage over their competitors by unfair means (Hewitt, Clark and Phillips, 2009) therefore competition authorities across the ground are concerned about their behaviour. Firms grow so large that unilaterally they harm competition done monopolising the trade and take advantage of their size to block threats arising from potential or existing competitors (Hewitt, Clark and Phillips, 2009). For example Microsoft the cosmoss largest software company indulge in similar such practices that denied separate software companies an hazard to build and market products competing with Microsofts products by building licensing agreements that were restrictive, exclusionary and unreasonable and thus monopolizing the client operating- system market by anti- competitive stra tegies (Justice, 1994 and Bloomberg, 2012).Large companies often make vertical or horizontal agreements with other firms called as cartel to fix footings not considering the reaction of either of its rivals or customers. Dominant firms fix high price knowing that their customers have few alternatives and little choice other than accepting the firms offered higher price (The Competition authority (a), 2013). For example Automobile giant Daimler Mercedes-Benz found guilty of fixing prices in collaboration with five of its van and truck dealers, also shared sensitive commercial information and to close to extent market sharing that negatively affected the competition in UK market however they were fined by UKs antitrust authority of about 2.6 Million (Reed, 2012 and Binham, 2013).Apart from fixing prices they also control markets or production or make agreements to share markets or supply sources so that rivals supply sources gets restricted. When doing business with other trading p arties they put different