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Learn how government regulations such as antitrust laws, like the Sherman Antitrust Act of 1890, work to prevent companies from dominating industries and forming monopolies or cartels. Discover how Microsoft's antitrust case highlights the importance of breaking up monopolies and promoting a competitive market. Explore the history of deregulation in industries like airlines, banking, and television as the government intervenes to ensure fair competition.
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Regulation & Deregulation • Government can make sure that one company does not dominate the market. • How? Through antitrust laws starting with the 1890 Sherman Antitrust Act • Goal = To eliminate businesses from becoming cartels or monopolies
What was the case about? Microsoft wanted to sell its operating system to all computer companies but the deal said all computers had to use Microsofts browser. • Lost in Court but appealed and pretty much was able to still sell its operating system but could not force the companies to buy its browser.
Deregulation • When the government steps in and decides what a company can make and charge in the market. • Examples: Airlines, Trucking, Railroad, Banking, Television, Cable