The US has no jurisdiction on how businesses are run in other countries.
As for the claim by mswas that de Beers is a “violent” monopoly, that is pure, unadulterated drivel.
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The US tries to extend its laws to other countries all the time. Our weird laws about trying to keep multinational companies from trading with Cuba seem to me to have the sort of logic that could be used to write laws about Debeers. It takes political will and for the most part people don’t care that much.
How is DeBeers coping with the threat of artificial diamonds? As far as I know, gem-quality synthtic diamonds are now available-what can the monopoly do when you can buy a better manmade stone for less(than a natural diamond)?
[QUOTE=ralph124c]
How is DeBeers coping with the threat of artificial diamonds? As far as I know, gem-quality synthtic diamonds are now available-what can the monopoly do when you can buy a better manmade stone for less(than a natural diamond)?
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From what I have seen with marketing and a little technology. 1) They use marketing to convince people that synthetic diamonds and not as desirable as natural diamonds. 2) Tests to determine if diamonds are synthetic or not.
The US has no jurisdiction on how businesses are run in other countries.
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Yes, but it does have jurisdiction to prevent price-fixing inside its borders, which was the charge leveled at DeBeers. Incidentally, the executives are once again free to travel to the United States; the company reached a settlement in 2004. (Cite: NYTimes) Company lawyers were still advising executives not to visit for a while (Cite) but I think they stopped that position by 2005 (Cite: Guardian puff-interview).
Of all the problems in the world; wars, enviornmental destruction, nuclear proliferation, genocide etc. etc. etc. Why should anyone get worked up about this one? Yes, monopolies are bad and DaBeers might be a group of terrible people. If they are breaking antitrust laws and get prosecuted I’ll shed no tears, but we’ve got bigger worries right now.
[QUOTE=gazpacho]
2) Tests to determine if diamonds are synthetic or not.
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Don’t the results of those tests hinge on synthetic diamonds having fewer flaws than natural ones? You gotta hand it to those guys, convincing people that imperfect is better than perfect. :rolleyes:
So says the guy who prefers Jaguars to Toyotas and finds a perfectly formed female face boring. And who loves cubic zirconias because they are pretty and dirt cheap.
[QUOTE=truthpizza]
While it is certainly true the DeBeers is not a complete monopoly, the essential point is that they have, as I understand it, done what they can to control as much of the market as possible so they can charge a price far above what a free and competitive market would bring. They have been very successful and the great majority of their profits have been made, not by providing better quality and price, but by stifling competition.
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As others have noted, if it happens in the United States, then the US will do something about it. As MrJackBoots’ post states, they have reached a settlement, so it stands to reason that at least one company was doing something about it. Companies are expected to try to control the market, otherwise, they wouldn’t be good companies.
[QUOTE=Thrash the Almighty]
Of all the problems in the world; wars, enviornmental destruction, nuclear proliferation, genocide etc. etc. etc. Why should anyone get worked up about this one? Yes, monopolies are bad and DaBeers might be a group of terrible people. If they are breaking antitrust laws and get prosecuted I’ll shed no tears, but we’ve got bigger worries right now.
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People are forced to work in diamond mines as slave labor. The war in Sierra Leone was funded by Blood Diamonds, that were mined illegally in Sierra Leone and sold out of Liberia.