Question

4. Think of this scenario: If SesamWare had been headquartered in a country that had no competition laws, as is the case in many developing countries, or if SesamWare had never signed a contract (for example, to buy out a competitor) with a party from the US, how could the US claim jurisdiction over the enforcement of its competition laws? (5 marks)
lenghty ans needed!!

Answer 1

Is there an international law governing Sesame’s behaviour? How will competition laws be enforced globally? If SesamWare had been headquartered in a country that had no competition laws, as is the case inmany developing countries, or if SesamWare never entered into a contract (for example to buy out a competitor) with a party from the U.S., how could the U.S. claim jurisdiction over the enforcement of its competition laws??

When SesamWare has its head office in a country without competition law, certain international organizations like the UNESCO,Greenpace etc. will allow fair and consistent regulation of such conducts. Such organizations have no international competition law.Unlike several many nations, with their antitrust legislation, the U.S. has the right to extend the rules outside its borders.Even if SesamWare has never entered into a contract directly with a U.S. party, but the party they negotiate with is contrary to any U.S. anti-trust legislation, they have the right to investigate and prosecute. This is called Software Extraterritorial. When they consider some intrusion, the US holds a clear and hostile extraterritorial role in coping with foreign competition. At the other hand, if the SesamWare group just had a remote and insubstantial effect on the U.S. deal, then there is no justification for U.S. antitrust laws.