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Suggestion amounts to, you know - even if the suggestionIs never put into practice, it could still be an infringement of The law. The infringements in this case would be for Conspiracy to allocate territories and fix prices. Of course, it's very hard from an evidentiary standpoint for the case to be proven, but it's still a violation. Mr Greene: But we're just a taxi company. I mean, it's not like we're Microsoft or anything. Mr Langston: That's irrelevant, I'm afraid. The law still applies. And territorial allocation - which is what dividing up the Territory between yourselves is called - is a serious breach Of antitrust law. Mr Greene: I see. Another suggestion he had was a discount on airport trips, a special price, really dirt cheap, that'd help us to hold on to what's left of the airport business. Mr Langston: Well, that's what's known as predatory pricing. It's trying to keep new businesses from entering a market By lowering prices below cost temporarily. Mr Greene: I see they even have a name for it. Mr Langston: Yes, they do. And they also have punishments for It. Let me caution you that the fines can be very high for this Sort of activity, Mr Greene. I must warn you that in this Jurisdiction, individuals directly involved in serious anticompetitive Behaviour face the threat of criminal prosecution, Which could lead to imprisonment. You should be aware that The risks of being a party to an anti-competitive agreement or Abusing monopoly power are serious. Mr Greene: Well, I can't say you haven't warned me. Mr Langston: As your lawyer, I must strongly advise you to Cease all communications with your competitor on the Topics of territory and pricing. Furthermore, I recommend That your competitor be advised of the illegality of his Behaviour. I also suggest you concentrate on other, legal Means of improving your position in the taxi-service market. Listening 2 How are mergers evaluated? Section 16 of the Act lays out the Criteria to be employed in the merger evaluation process. There Are three key steps. First, the investigators, and, where Appropriate, the Tribunal, must consider the impact of the Merger on competition. This is not simply a matter of Calculating present market shares and imputing future market shares. It's a sophisticated analysis in which a range of factors Must be considered. The nature of the product, the state of International trade in the product, past inter-firm relations, the Prospect that, in the absence of the merger, one of the firms May fail are some of the factors that have to be accounted for. Once this analysis is done, it's possible that a merger that Leads to a large market share might be approved, whereas one That results in substantially smaller market shares might be rejected. One word of advice here: the definition of the market Is a very important step in conducting the competition Analysis. Predictably, the parties tend to define their market Very widely; competition authorities tend to rather narrow Date: 2015-12-11; view: 946
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