HOW DO YOU SPELL CONGLOMERATE?

HOW DO YOU SPELL CONGLOMERATE?

(Christian Science Monitor, Schuyler Velasco, Huff Post)

(Timothy Stanovac, Associated Press, Frazier Moore, New York Times)

(Bloomberg News, Mark Schmidt, Antitrust Laws, Tomas DiLorenzo, Fred S McChesney)

( A A Berle, Herbert Hovenkamp, Houston Law Review, Antonio Cucinotta, Frazer Chronicle)

 

I’m not up on my Anti Trust laws, except that if there’s only two providers, and one buys the other out, doesn’t that mean that isn’t any more competition, and the one company left can charge whatever they decide.  I mean I’m not a lawyer, although I did stay at a Holiday Inn one time, so I guess that would make me an expert…..right?

 

I do know that there used to be what was called gas wars, where gasoline stations would undercut by a penny or two the price for their gallon of gas, and then the other guy would cut his prices by a penny or two to entice back the customer that he’d lost. I used to love those kinds of wars, nobody died, nobody got wounded, and there weren’t any prisoners of war. Really the only one that lost was the gas station operator.

 

But those days are gone, like 50 years and more gone, and now look at the mess that’s been created. The other day, Monday I think it was, gasoline a gallon at my favorite filling station was $3.27.9, and this past Wednesday it was $3.32.9, and everywhere else in town. I kind of keep an eye where the gas prices per gallon go, and to date, I’ve never gotten a satisfying answer to my question…..why.

 

I watch television, I rely on my computer, it’s how I make a few extra dollars, and I’m wondering exactly what will happen with the cost structure now that it appears that I’ll be dealing with Comcast instead of Time Warner. Hell I’ve been a Time Warner customer for something like 25 years, and I pay a goodly piece of change every month to keep my land-line, my cable, and my computer. I’m thinking that this deal won’t equate very well for me…..I see per month prices hitting new heights.

 

EXPERTS SAY

Antitrust regulation is legislation designed to disband the formation of monopolies, and protecting small business from being destroyed by unfair tactic, and to protect the public by ensuring better prices through competition. Competition is the foundation of any democratic society that is governed by the theory of supply and demand.

 

Congress passed the first antitrust law, the Sherman Act, in 1890 as a “comprehensive charter of economic liberty aimed at preserving free and unfetter competition as the rule of trade.” In 1914, the Congress passed two additional antitrust laws: the Federal Trade Commission, (FTC) Act, and the Clayton Act. With some revisions, these are the three core federal antitrust laws that are in effect today.

 

The laws, rules and regulations that business in the United States is supposed to operate under are pretty well cut and dried. The Sherman Act outlaws every contract, combination, or conspiracy in restraint of trade, and any monopolization attempted monopolization, or conspiracy or combination to monopolize. The Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are unreasonable.

 

 

 

These acts further ban unfair methods of competition, and unfair or deceptive acts or practices, and further any business practices if they break the Sherman Act also are in violation of the Clayton act. The Clayton Act addresses any mergers and acquisitions are designed to substantially lessen competition are illegal.

 

In addition to these federal statutes that govern the business practices of the smallest to the largest of companies in the United States, most states have antitrust laws that are enforced by state attorneys general or private plaintiffs, not surprising most of the state laws are based on the federal antitrust laws.

 

However even with these competition laws in place, and monetary penalties that can go into the millions, in many instances, mergers are allowed to be consummated, or the size of the dollar amount is considered…..and deemed nothing more than a business cost.

 

WHAT’S GOING TO HAPPEN

Addition technological services no doubt will be offered…..for a charge, bundling of services will be encouraged, and the entertainment (in home) will become an even more common system for people’s enjoyment.

 

Antitrust officials will take a hard look at any consolidation in the cable industry, and they’ll be hard pressed to suggest a merger between Time Warner and Comcast. The choice that consumers have will dwindle down to one big time operator, Comcast.

 

The road ahead for the proposed merger between the two cable giants will be rough, and will take some dips, and curves, but at the end of the day…..personally, I figure that the merger will happen, Comcast will become by far the largest of the cable companies. And us, the consumer, well we’ll be left holding the proverbial bag.

 

I watch television about 3 hours a day, I’m on my computer a minimum of 8 hours every day, and our landline is through the same company, Time Warner. I suppose now we’ll be paying our monthly payments to Comcast. Between the two cable companies there are around 85,000,000 customers, and if each customer is paying $100 bucks a month…..that would beeeeeeeeeeeeeeeeeeeeeeeeeeeee?

 

HAVE A NICE DAY!