I company is a large American company that makes computers. It controls approximately 65% of the...

I company is a large American company that makes computers. It controls approximately 65% of the market in the European Community. It refuses to share the patents and copyrights it owns for the operating system software that controls its computers and so thereby not allowing other manufacturers to make computers that are compatible with I’s computers.Would I company’s actions be in violation of Articles 101 and 102 of the Treaty on the Functioning of the European Union?

Would its actions be in violation of American anti-trust laws?

Solutions

Expert Solution

Yes, I company's actions will be in violation of Artcles 101 and 102 of the Treaty on the functioning of the European Union.

The company's actions will also be in violation of American anti-trust laws.

Articles 101 and 102 of the Treaty on the Functioning of the European Union, is concerned with prohibited agreements, mergers between companies and abuse of dominant position.

I company in hope of monopolizing sales and profits in the computer market is clearly abusing its dominant position by refusing to share the patents and copyrights it owns for the operating system software that controls its computers which is inhibiting free competition in the market for computers.

I company is violating abuse of Dominant Position in US Under Section 2 of the Shearman Act in US according to which it is unlawful for any person to “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…”.

Therefore, we can say that I company is violating anti-trust laws in the US as well as Articles 101 and 102 in the EU.

Rahul Sunny answered 4 weeks ago

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