Proposed Remedies
Proposed Remedies
The Findings of Fact and Conclusions of
Law left open the necessity to seek a remedy for the situation. There are two
types of remedies in antitrust cases—structural and behavioral.
Structural remedies involve
restructuring the offending firm in a way that destroys its monopolistic
advantages and restores fair competition to the relevant market. Structural
remedies often take the form of breakups, in which the firm is separated into
several competing firms. The remedies can also take the form of what is called a
firewall, in which the individual divisions of the company are barred from
cooperating or sharing information with one another. This doesn't necessarily
mean breakup must take place, but often firewalls are put in place between the
firms resulting from a breakup.
Behavioral remedies involve government regulation of the offending firm for a period of time. Often the firm is forced to sign an agreement saying they will not engage in the anticompetitive practices that got them in trouble the first time, and the government watches them carefully to make sure the agreement is upheld in practice.