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Full-Text Articles in Law

The Anticompetitive Effect Of Passive Investment, David Gilo Oct 2000

The Anticompetitive Effect Of Passive Investment, David Gilo

Michigan Law Review

There are many cases in which a firm passively invests in its competitor. For example, Microsoft passively invested in $150 million worth of the nonvoting stock of Apple, its historic rival in the operating systems market. Also, in November 1998, Northwest Airlines, the nation's fourth-largest airline, purchased 14% of the common stock of Continental Airlines Inc., the nation's fifth-largest (and fastest growing) airline. Northwest competes with Continental on seven routes, serving 3.6 million passengers per year. In another example, TCI, the nation's largest cable operator, became a passive investor with a 9% stake (which can be increased, under the terms …


Indirect Purchaser Doctrine: Antecedent Transaction, The, Jill S. Kingsbury Apr 2000

Indirect Purchaser Doctrine: Antecedent Transaction, The, Jill S. Kingsbury

Missouri Law Review

Section Four of the Clayton Act,2 the treble-damage action provision of the federal antitrust laws, was intended to foster and encourage competition by allowing private enforcement of the antitrust laws. The ever-present threat of a private action for treble-damages serves as a deterrent to anyone contemplating business activities in violation of the antitrust laws and offers the possibility of compensation to victims injured by anti-competitive activities.3 The Supreme Court's decision in illinois Brick Co. v. lllinois4 defined the reach of the trebledamage provision by holding that only direct purchasers of illegally monopolized products or services have standing to sue under …


Antitrust Beyond Competition: Market Failures, Total Welfare, And The Challenge Of Intramarket Second-Best Tradeoffs, Peter J. Hammer Feb 2000

Antitrust Beyond Competition: Market Failures, Total Welfare, And The Challenge Of Intramarket Second-Best Tradeoffs, Peter J. Hammer

Michigan Law Review

Should antitrust law ever sanction the accumulation of market power or permit other restraints of trade if such conduct would increase social welfare? This is the challenge raised by intramarket second- best tradeoffs. The lesson of second-best analysis is that one market failure can sometimes counteract the effects of another market failure. In the presence of multiple market failures, it is conceivable that mergers or other restraints traditionally viewed as anticompetitive may be welfare-enhancing. A social planner, given the mandate of maximizing total welfare, would permit such restraints. Could an antitrust judge come to the same result under a defensible …


Antitrust And Market Power, Milton A. Marquis Jan 2000

Antitrust And Market Power, Milton A. Marquis

Richmond Journal of Law & Technology

The antitrust laws have been described as the "Magna Carta of free enterprise."


Annual Survey Of Virginia Law: Antitrust And Trade Regulation Law, Michael F. Urbanski, James R. Creekmore Jan 2000

Annual Survey Of Virginia Law: Antitrust And Trade Regulation Law, Michael F. Urbanski, James R. Creekmore

University of Richmond Law Review

During the past year, this country has devoted much attention, with good reason, to the Microsoft trial and appeal. Not since the breakup of Ma Bell's stronghold on the telecommunications industry in the early 1980s has a single legal battle posed so significant a change for both an industry and its consumers. In fact, given the far-reaching effects of this decision on other related industries and consumers, it likely will be years before its ultimate impact can be assessed.