Corporate America is greatly effected by government regulation in a variety of forms. From regulations mandated by government agencies like OSHA to interest rate regulations enacted by the Federal Reserve Bank, businesses must adapt to a host of government issued mandates that have an impact on business. The recent Microsoft appeal is evidence of how government regulation impacts business. Microsoft was convicted of violating Section 1 of the Sherman Antitrust Act by linking its Internet Explorer browser to its Windows operating system (Labaton [2/27], 1). The decision forced the company to break into two different components.
The regulations of government also impact consumers as well as businesses. For example, the Supreme Court is hearing a case that is expected to have an impact on the price consumers pay for local TV and high-speed Internet connections. Regional Bell companies charge new, small companies to lease their equipment. Critics say prices have crippled competition, but Bell insists any less cost will destroy the company. In part this situation has arisen due to the Telecommunications Act of 1996 “an attempt to begin deregulating the industry and to make service and prices more competitive” (Labaton (1/23), 1). The recent attempts to prevent Napster from permitting music to be downloaded for free on its Web site is another case of the enormous impact government regulation has on business. Popular with audiophiles everywhere, Napster infuriates singers, songwriters, and music industry executives. Recently the company was ordered by a federal judge to “curb the exchange of copyrighted music on its Internet service” (Richtel 1). The decision threatens to ruin the company.
A Congressional hearing is underway with Citibank as the focus. Government investigators are concerned with dubious business dealings the company has had with two Caribbean banks. The company is
...