Antitrust Investigation of E-Book Companies - 1136 Words

Antitrust Investigation Of E-Book Companies Today’s society is based on ever changing technology. Not only are there computers, cell phones, and gaming systems, but also Androids, I pads, and E-readers are now available. Computers and other devices such as I pads and Androids offered through Apple, and e-readers such as the Nook offered through a company called Barnes and Noble and the Kindle offered through another company, Amazon, can be used to read electronic books, also known as e-books. The e-books are offered through these companies with the help of publishers in an Oligopoly Market Structure, which is when a few companies and, in this case, publishers offer a product like the e-books to consumers, in an imperfect competition.†¦show more content†¦(Kanter, 2011, p. 3) Apple and the five publishing companies shouldn’t take their antitrust investigation lightly. While they have committed collusion against other companies that provide e-books like Barnes and Nobel their main company they collude d against was Amazon. They have forced publishers to look at how they provide the book and the prices they sell them for. A monopoly is a good thing when it comes to certain products like utilities. I also think that in some cases a government monopoly is good as well. While there isn’t a competition for these companies to help keep prices down, this lack of competition can keep the price down in itself. If there is the one resource and the one company that provides it, the company would more likely keep the cost down because it is not competing for the resource it uses to produce its good. Therefore, the company and the government won’t face being charged more for the resource to produce a good. I also feel that the oligopolies are good as well. The competition can help keep the costs down for the consumer. In this case with the e-books as well as other products such as clothing or shoes other companies will compete for selling the products and therefore thi s can result in prices being lower because companies are trying to get more customers. This can help a company’s economies of scale as well. In the long run, the company can expand the amount of products itShow MoreRelatedSwot Analysis Of Alibuba In China1093 Words   |  5 PagesIntroduction: In the year 2016, an e-commerce giant held a one-day sales bonanza that outsold Black Friday and Cyber Monday at all US retailers combined. It was not Amazon’s Prime Day; it was Chinese e-commerce company Alibaba’s â€Å"Singles’ Day Holiday,† in November of 2016, where approximately $17.8 billion worth of goods were sold, according to Business Insider (http://www.businessinsider.com/amazon-prime-day-vs-alibaba-singles-day-2017-7). 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