What is the Sherman Anti-Trust Act? The Sherman Antitrust authorized the Federal Government to dissolve any trusts. It began with the statement: "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” Section 2. Monopolizing trade a felony; penalty Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years. Do Now What is a Trust? What is the Sherman Anti-Trust Act? How was it enforced?

Microsoft’s Legal Battle February 17, 2000 – Microsoft releases Windows 2000 April 3, 2000 – United States v. Microsoft forces Microsoft to split into two separate units. Parts of that ruling were later overturned. 2004 - Microsoft releases Windows XP Media Center Edition 2005 March 2004 – EU fines Microsoft $613 billion and forces the company to develop software without Windows Media Player

Barriers to enter market Control of natural resources: A prime source of monopoly power is the control of resources that are critical to the production of a final good Capital requirements $$ No substitute goods Technological superiority

MERGERS Merger- is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly How can this be good/bad?