Essay: Strategic Behavior and Attempted Monopolization

Sample Essay

This paper would seek to evaluate one of the prominent cases regarding monopolization laws; “Strategic behavior and Attempted Monopolization: the Coffee (General Foods)”. This case affected certain important areas regarding the monopolization laws as it required a sequential analysis of the sort of the activities that were carried out by the concerned company and what were the repercussions on the market. This case became a cause for so much concern due to the fact as the market evolves, the laws regarding those practices do not evolve at the same rate and hence hat results in such cases gaining prominence which became the bane for the creation of laws to address these issues.

The case noted above was one such case as the Commission had to analyze whether predatory pricing had occurred or not and in order to do so, the three-point Du-Pont element test was made use which includes the specific intent to control prices or destroy competition, exclusionary or anti-competitive conduct and lastly a dangerous probability of success.

The rationale for the government intervention was due to the fact that the sort of economic scenario that this particular case was embroiled in is highly controversial and has lasting impact on the entire welfare of a society. Added to this, was the approach which was used by the Commission in order to resolve the case as unlike the preceding cases, the Commission made use of the last element of the Du-Pont test only as it was felt that the other two were unnecessary.

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