• Injunction of Merger Overturned

    Posted by Adan Perales at 9/27/2013 1:00:00 PM
    In regards to the sales of alcoholic beverages, Anheuser-Busch and Groupo Modelo rank number one and number three in the World.  Last year, Anheuser-Busch announced it's plans to purchase Groupo Modelo for an undisclosed amount.  Claims that a possible monopoly would be a brew, led to an injunction (and court action which prevents something from happening) being placed on the business transaction. Together, these two companies account from approximately 55% of all beer sales in the United States. The fear was that with their combined forces, they may impede in the market's ability to allow for pure competition. Hence, this new super company would have the power to set price. As you may know from Economics class, in a free market economy, price is normally set through competition between companies. Through the process of supply and demand, and equilibrium price is established.
    By having our government step into the picture and infringe on the practices of a business is a violation of the principles of a free market economy. However, some would argue that without such actions by our government, a free market economy may not exist in certain markets.
     
    What do you think? Should our government get involved when it comes to the best interests of the people? Or should they allow business to compete freely and without restrictions and all things to fall as they do?
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