Question

In one typed page, discuss an instance (from real life) of a government (the US government or a foreign one) taking action to promote competition / break-up monopolies. Explain the government’s motivation in this.

Answer 1

Answer:

Let us consider an example from the United States itself.AT&T was the only company that used to hold the patent to use transistor technology in the mid 19th century.In,1956 government intervened to enforce a consent decree on AT&T that made compulsory for it to put transistor patent in the public domain. That meant AT&T couldn't make any money off of other companies using transistor technology for its products. Government was primarily motivated to undertake this step to stop the forthcoming barrier in the invensions that could be possible in future using the technology of transistor at that point of time. Thereafter, the transistor's technical know how was made available to the general public to promote further research and development.