Question

In Chapter 4 of the textbook, we discuss the powers of the federal government. One power of the federal government is to regulate commerce. In Chapter 5, there is a discussion on how the federal government can regulate business in order “to advance the nation’s economic needs” (Twomey & Jennings, 2017). Link to the video: https://youtu.be/LsKYlDdVVQc

There was a lawsuit against Apple relating to possible illegal antitrust activities. The lawsuit is discussed in a video posted in the Learning Unit for this week of class.

1. What type of violation was noted in the news story? What law would make the alleged actions by Apple illegal?
2. What provision of the Constitution provides the power to the federal government to regulate this behavior by a business (the US Constitution is in the Appendix of the textbook)?
3. Who are the various stakeholders impacted by the federal government suit?

Answer 1

The casr mentions that Apple and Five Ebook sellers have colluded together to eliminate other low cost ebook sellers and at same time have raised prices for consumer's ahead of the launch of Apple's product iPad. This has been great setback for Amazon's ebook channel business segment and thus has attempted to create cartel which attracted US ANTITRUST Regulations.

As per Constitution and US Anti Trust Laws, any company indulging in price rigging or forming cartel or colluding together to throttle competition and create high prices are subject to legality under ambit of Sherman Act which condemns such behaviour of firms to be illegal and be booked under felony.

Various stakeholders affected shall be employees, investors and owners of Apple Inc.