Fact Pattern 20-1
MicroManage is the fastest growing home-software producer in the country. In 2000, it sold 6% of all home software in the U.S., but in 2011, it sold 55% of all home software. A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry.
In 2011, MicroManage proposed a merger with Game Master, its main rival. Game Master was responsible for 10% of all home-software sales in 2010. MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers.
The Department of Justice filed suit to stop this merger, claiming the combination would give monopoly power to the merged firm. Justice insists that consumers would lose in the end.
-Refer to Fact Pattern 20-1. Which case might a court use as precedent to determine whether or not the MicroManage merger is legal?

Question

Quizplus · Accepted Answer

The case of Standard Oil Co. of New Jersey v. U.S. is a landmark case in antitrust law and is often used as precedent to determine whether a company has a monopoly in a particular market. The DOJ's claim that the MicroManage merger would give the combined firm monopoly power is similar to the situation in Standard Oil, where the company was found to have a monopoly in the oil industry. A court may use this case as precedent to determine the legality of the MicroManage merger.

Fact Pattern 20-1 MicroManage Is the Fastest Growing Home-Software Producer in the Country