HIRA MALIK

ROLL NO. 13968

SUBMITTED TO: HAFIZ WAQAR
DATE: 27.12.2022
CLASS: MBA (1.5)
Sherman act and Clayton act. Give five examples
of strategic alliances and joint venture in
Pakistan.
Clayton Antitrust Act
The Clayton Antitrust Act of 1914, codified at 15 U.S.C. 12-27, is one of the primary
pieces of antitrust legislation in the United States. This act was designed to bolster
the Sherman antitrust Act and outlaws the following conduct:

 price discrimination against competing companies;

 conditioning sales on exclusive dealing;
 mergers and acquisitions when they may substantially reduce competition;
 Serving on the board of directors for two competing companies.

Each of these prohibitions is designed to prevent monopolistic conduct, particularly by

companies attempting to purchase their competition. Penalties for violating the Clayton
Act are strictly civil. Individuals harmed by the above anti-competitive actions can sue
for triple damages and an injunction. 
Notably, unlike the Sherman Act, labor unions are explicitly excluded from needing to
comply with the Clayton Antitrust Act.  

Sherman Antitrust Act

The Sherman Antitrust Act refers to a landmark U.S. law that banned businesses from
colluding or merging to form a monopoly. Passed in 1890, the law prevented these
groups from dictating, controlling, and manipulating prices in a particular market.

The act aimed to promote economic fairness and competitiveness while regulating
interstate commerce. The Sherman Antitrust Act was the U.S. Congress' first attempt
to address the use of trusts as a tool that enables a limited number of individuals to
control certain key industries.

Sections of the Sherman Antitrust Act

The Sherman Antitrust Act is divided into three key sections:

 Section 1: This section defines and bans specific means of anti-competitive

conduct.
 Section 2: This section addresses end results that are by their nature anti-
competitive.
 Section 3: This section extends these guidelines and provisions to the District of
Columbia and U.S. territories .
Example of the Sherman Antitrust Act

On Oct. 20, 2020, the U.S. Department of Justice filed an antitrust lawsuit

against Google, alleging that the online giant engaged in anti-competitive conduct to
preserve monopolies in search and search advertising. Deputy Attorney General
Jeffrey Rosen compared the complaint to past uses of the Sherman Act to stop
monopolistic practices by corporations.

“As with its historic antitrust actions against AT&T in 1974 and Microsoft in 1998, the
Department is again enforcing the Sherman Act to restore the role of competition and
open the door to the next wave of innovation—this time in vital digital markets,” Rosen
said in a press release.

What Is the Difference Between the Sherman Act and the Clayton
Act?

The Clayton Act was introduced later, in 1914, to address some of the specific
practices that the Sherman Act did not clearly prohibit or failed to properly clarify. The
Sherman Act, the first of its kind, was deemed too vague, allowing some companies to
find ways to maneuver around it.

Essentially, the Clayton Act deals with similar topics, such as anti-competitive mergers,
monopolies, and price discrimination but adds more detail and scope to eliminate some
of the previous loopholes. Over the years, antitrust laws continue to be amended to
reflect the current business environment and fresh observations.

Examples of strategic alliance

1) NBP-Telenor
National Bank of Pakistan (NBP), Telenor Pakistan (TP) and Telenor Microfinance Bank Ltd
(formerly Tameer Microfinance Bank Ltd) formed a strategic alliance to further financial
inclusion in Pakistan at a signing ceremony held at local hotel in Islamabad. The strategic
alliance is in continuation of the coalitions to promote financial inclusion that now cover almost
the entire telecom industry of Pakistan. The agreement was signed among NBP President& CEO
NBP Saeed Ahmad, Telenor Pakistan CEO Irfan Wahab and Telenor Microfinance Bank CFIO &
CDO Yahya Khan, in the presence of senior management from the three organisations.

2) HBL-Huawei
 HBL and Huawei Pakistan signed a Memorandum of Understanding (MoU) to cement
their strategic partnership, through projects focused on financial and technological
innovation, enabling HBL to augment its existing processes and systems. Both
organizations have already completed milestone projects in 2020, such as the
Promissory Note discounting project and the SD-WAN projects. Both organizations
agreed to work together to focus on technological innovation in digital banking, mobile
payment systems, and the cloud platform.

3) Faysal bank- Honda

Faysal Bank Limited (FBL), one of the leading banks in Pakistan, joins hands with Honda
Atlas Cars Pakistan Ltd to offer exclusive rewards and value added services to their
customers. As part of the Strategic Alliance between Faysal Bank and Honda Atlas Cars
Pakistan Limited, customers can avail fast track vehicle delivery along with complimentary
vehicle maintenance and accessories. Furthermore, customers will also receive priority
treatment at Faysal Bank and Honda Atlas Authorized Dealership Premises.

Joint venture

1) Siegwerk

Siegwerk, one of the leading global providers of printing inks

and coatings for packaging applications and labels, announced a
joint venture agreement with Rotopack, a leading supplier in the
printing and packaging industry in Pakistan. The jointly founded
new company Siegwerk Pakistan will start its business in Q2 of
2022.

2) Vodafone- Telenor
Vodafone & Telefónica agreed to share their mobile network.

3) Uber-Volvo
Another example of a joint venture is the joint venture between the taxi
giant UBER and the heavy vehicle manufacturer Volvo. The joint venture
goal was to produce driverless cars The ratio of ownership is 50%-50%.
The business worth was $350 million as per the agreement in the joint
venture.