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

Fight against Rockerfeller

Modern Example: Microsoft

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.

Breaking up Monopolies: History

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