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The Effect of Anticompetitive Behavior by Global Companies on Local Businesses by the Example of the Technology Industry and the Cases of Apple and Google

Student: Aminat Alieva

Supervisor: Alexandra Zhukova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2019

Nowadays the global companies are trying to establish their operations in almost all countries, that results in tougher competition on the local markets. However, this proximity of global enterprises does not always benefit local businesses, because the fact, that some global companies tend to break fair competition rules in order to get the market dominance. This is especially true for the technology industry. The study considers the consequences of global companies’ anticompetitive behavior for local businesses on the example of such technology giants as Google and Apple. The object of the research – global companies’ anticompetitive behavior. The subject of the research – the influence of anticompetitive behavior of global companies on local businesses. The main goal of this research is to identify the consequences of such anticompetitive behavior for local companies and give recommendations for local businesses support. In order to achieve this goal, it is necessary to perform the following tasks: - Study theoretical aspects of anticompetitive behavior by global companies; - Proceed analysis of the competition between global companies and local businesses in the technology industry; - Proceed analysis of Apple and Google companies’ anticompetitive behavior cases and point out the consequences of such behavior for local businesses operating in the technology industry; - Determine in general the main consequences of global companies’ anticompetitive behavior for local businesses and provide recommendations for the reduction of their influence on local players. The hypotheses, that will be approved or disapproved in this research paper, are the following: 1. Due to the fact, that even after legislative intervention and suspension of anticompetitive behavior of global companies, local companies continue to have losses after the violation of fair-competition rules, local suppliers have all grounds to decrease the dependence on their global partners and to develop partnerships with domestic companies; 2. Local software companies have more risks associated with client accessibility due to anticompetitive behavior of global companies, than computer equipment and communication equipment producers.

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