ACADEMY ASSOCIATION OF ECONOMICS CERTIFIED CHARTERED ECONOMISTS CHE CEPA

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The government has continued to pursue antitrust prosecutions since World War II. The Federal Trade Commission and the Antitrust Division of the Justice Department watch for potential monopolies or act to prevent mergers that threaten to reduce competition so severely that consumers could suffer. Four cases show the scope of these efforts:

· In 1945, in a case involving the Aluminum Company of America, a federal appeals court considered how large a market share a firm could hold

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before it should be scrutinized for monopolistic practices. The court settled on 90 percent, noting "it is doubtful whether sixty or sixty-five percent would be enough, and certainly thirty-three percent is not."

· In 1961, a number of companies in the electrical equipment industry were found guilty of fixing prices in restraint of competition. The companies agreed to pay extensive damages to consumers, and some corporate executives went to prison.

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Friedrich August von Hayek, 1974 Nobel Prize Winner

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