Antitrust laws are the legislations by state governments aimed regulating the way in which trade and commerce is carried out. This is possible through the prevention of illegitimate price-fixing and monopolies and facilitating fair completion. The net effect that is felt by the consumer is the production of high quality goods and services at prices that are affordable to all. Additionally, the public welfare and interest are well protected because it ensures that their demand is met by the firms who are engaged in the sale of goods and services. This is achieved by the provision of an ample environment for businesses to experience fair competition resulting in good business practices in all industries in the United States. This is achieved by cultivating the culture and the belief that the economy, the manufacturers, and consumers should mutually benefit from the effects of free and fair trading (Mankiw, 2008, p. 7).
In its bid to create fair business environment antitrust laws mostly try to minimize cases of monopolization by various firms which may intend to create it through any possible merging. When firms merge, they reduce the competition within themselves and the net effect is that one company controls the whole industry and makes any decision regarding the prices of the products that it handles. This is where the antitrust laws come in place in order to protect consumers from any possible conspiracy. This conspiracy may occur through other ways like competitors agreeing to raise the prices of goods beyond a certain level, contractual agreements, and maintenance of monopolistic powers.
BUSINESS ETHICS AND LEGAL ISSUES
Conduct a comparative analysis of the firms
Mergers have affected the manner in which companies carry out their business in a number of ways. This is depicted from the two companies which conspired in order make profits by creating an unfair environment. This raised the concerns of the Federal Trade Commission. The case in question involves one France-based company known as Aventis Company and Andrx Pharmacies. Aventis Company (now Sanofi-Aventis) is a pharmaceutical company based in France and deals with developing of new medical products relating to vaccines, central nervous system among other five areas. The company was formed in 1999 when it merged with a German-based Hoechst company. Most of the products that the company makes deal with the reduction of pain and other over-the-counter products. The history of the company shows that it was managed by one general manager from 1973 to 2007. Most shareholders of the company are the public and besides its involvement in research the company also funds public research especially in the clinical sector (Ferrell et al., 2009, p. 35).