Legal Issues

If I were a judge, there are some times when I would deem a company too big. By too big, I understand that such a company will defiantly be a monopoly. To know this, I expect that the company has all the consequences or the characteristics of a monopoly. These characteristics are such as reduced prices, higher prices and reduced quality of goods. When a company possesses these characteristics, it becomes obvious that it will be unreasonable restraining trade and at the same time going against the Sherman Act. It is only when a company possesses these characteristics that I would consider it too big. (Meese A. , 1999)

When a company is this big, it is normal that it will be conducting some of the activities that can be deemed anti competitive. Some of these activities are the production of goods which are sold at very high prices. The companies also product goods in very small quantities which do not meet the clients demand.  Even though some of these goods may be of poor quality, the clients in the field already know them and therefore buy them without much complaint due to their trust. Since such a company is already in a contract without the other manufacturers in the market, this makes it difficult for the others to produce due to poor sales. A good example is the case of State Oil v. Khan, 522 U.S. which is a clear presentation of the maintenance of monopoly using unjustified means. (McConnell, C. Brue, S., 2005)

A companys structure may be deemed economically dangerous when it is too big and too powerful. The participation of such company in the market is known to have a major impact on the economy of the country. Some companies may be too powerful for the country and this makes then take advantage of the situation and exploit the other players in market. A good example is the Jefferson Parish Hospital District No. 2 v. Hyde, 466 U.S. 2 (1985) case. (Meese J. , 2003)

There are a number of benefits that a company gains by just being a monopoly. First of all there is no competition and this means that the company will not have to compromise anything so that it can exist in the market. This further means that the company will have all the market advantage in the business and therefore it is likely to achieve all the set objectives that it may have. This would further mean that the company is likely to grow and therefore expand. This is because those resources that the company was initially using in adverting and other activities will now be used to expand the organization. (McConnell, C. Brue, S., 2005)
In a monopoly, there are more disposable resources available. This means that the organization is able to venture into research and in the process come up with better products which will be more helpful in the market. This may be difficult especially where there is stiff competition. A good example is the case of Microsoft. Due to its monopolistic nature, it able to improve on its products from the developing advanced operating systems to its advanced and more efficient software. There are some other companies that have been monopolies for a long period of time. Such companies are the Electric Power Industry, the petroleum industry may also be said to be monopolistic and also the Nokia company. Even though there are other cell phone production companies that are in existence, the Nokia Corporation may be said to have monopolized the market in most part of the world.