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  • Well-known American food brand, H.J. Heinz Co. is in talks to buy Kraft Foods Group Inc.

  • in a 40 Billion dollar merger deal. If approved by shareholders and regulators, the two companies

  • together will form the world’s 5th largest food company, owning brands such as Jell-O,

  • Cracker Barrell, and Weight Watchers. Do mergers like this violate antitrust laws against monopolies?

  • Well to begin with, let’s take a look at what antitrust laws are and what theyre

  • meant to protect.

  • The history of American antitrust laws goes back to the Industrial Revolution. With machines

  • expediting labor, businesses like Rockefeller's Standard Oil and Carnegie's Steel Company

  • became so large that they shut out any competition. They were called trusts, back then, but today

  • we call themmonopolies.” Monopolies can force consumers to pay higher prices,

  • and make it impossible for other companies to enter the market. Because of their size,

  • they can hurt the economy and even skirt government regulations.

  • Something needed to be done. Presidents and other politicians around the turn of the 20th

  • century were looking to help the American economy, and they recognized the need to regulate

  • monopolies.

  • The Sherman Act of 1890 was the first law that made monopolies illegal. In 1914, the

  • Federal Trade Commission Act, which created the FTC, and the Clayton Act were passed to

  • further protect consumers and smallest companies. Regulatory policies were installed to outlaw

  • price gouging and mergers which would hurt competition. Today, all three of these laws

  • form the foundation of American antitrust laws.

  • So back to the Heinz-Kraft merger. Both of these companies are already major players

  • in the food industry, so wouldn’t their integration be bad for competition? Well according

  • to analysts, the food brands owned by Heinz and Kraft are just diverse enough that they

  • don’t overlap. Theyre not really both in the ketchup game - so there’s no ketchup

  • monopoly. One is most well known for ketchup, while the other is known for mac and cheese.

  • Experts think the Heinz-Kraft deal will be scrutinized, but eventually approved by regulatory

  • agencies. If there is overlap, the FTC can force them to sell off some of their similar

  • brands before the merge.

  • When you hear monopoly, you might think of the classic board game by the same name. Although

  • it might seem strange, this popular game was actually developed as anti-capitalist propaganda.

  • To learn more, check out this video from Seeker. Thanks for watching TestTube! Please subscribe.

Well-known American food brand, H.J. Heinz Co. is in talks to buy Kraft Foods Group Inc.


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B2 中高級 美國腔

我們如何與壟斷作鬥爭 (How We Fight Against Monopolies)

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    Ji Zhi Chen 發佈於 2021 年 01 月 14 日