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The Advertising Industry— An Unlikely Monopolizer

The role of advertising in the competitive process underlying our free market system has been a matter of controversy for many years. The importance of this subject to antitrust lawyers, however, did not become apparent until the filing by the Federal Trade Commission of its pending proceeding against the four leading ready-to-eat cereal manufacturers under Section 5 of the FTC Act.' The business of advertising has now become the focal point of this important test case as to what right, if any, the Government has to reorganize a concentrated industry. The agency's proposed order against the four leading firms calls for "divestiture of assets ... for the formation of new corporate entities."