Asked by Kaitlan Phillips on May 12, 2024
Verified
Say It Inc. and Text Talk Inc. are social media companies. They compete for employees, users, and advertisers. The two firms work together on security threats, however. With respect to antitrust law, this cooperation is most likely
A) a violation because it is not possible to completely thwart such fraud.
B) a violation because it concerns sharing confidential information.
C) a violation because it involves setting aside competitive differences.
D) not a violation because it is not anticompetitive.
Antitrust Law
A body of laws designed to prevent anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.
Social Media Companies
Businesses that provide platforms for social networking, allowing users to share content, interact, and establish community over the internet.
- Distinguish between permissible cooperative actions and those that violate antitrust laws among competitors.
Verified Answer
GY
Gillian YoungMay 18, 2024
Final Answer :
D
Explanation :
Cooperation between competitors on security threats is generally not considered anticompetitive under antitrust law. Such collaboration can enhance the security and reliability of their services, benefiting consumers without necessarily reducing competition in terms of pricing, product quality, or innovation.
Learning Objectives
- Distinguish between permissible cooperative actions and those that violate antitrust laws among competitors.