The Antitrust Implications of Wal-Mart's Business Practices

The size of Wal-Mart is astounding. It is not only the largest company in the world, but in the history of the world. It is also the largest retailer in the United States, Mexico, and Canada. Because of its sheer size and impressive market power, Wal-Mart has been the envy of competitors, the bane of suppliers, and a godsend to consumers. Their efficiency gains and economies of scale enable them to charge lower prices than …

…as outsourcing concerns. Antitrust economics enables us with the legal tools to combat anti-competitive behavior, though it may not be the most effective tool in some cases. A company such as Wal-Mart should not be faulted for being efficient, but it should be faulted if it oversteps the thin line outlined in the Robinson-Patman Act. As they say, it depends. The main goal isn't always about efficiency, but sometimes it's not always about equality, either.