Antitrust and Trade Regulation Commons^™

Measuring Compliance With Compulsory Licensing Remedies In The American Microsoft Case, William H. Page, Seldon J. Childers

UF Law Faculty Publications

Section III.E of the final judgments in the American Microsoft case requires Microsoft to make available to software developers certain communications protocols that Windows client operating systems use to interoperate with Microsoft's server operating systems. This provision has been by far the most difficult and costly to implement, primarily because of questions about the quality of Microsoft's documentation of the protocols. The plaintiffs' technical experts, in testing the documentation, have found numerous issues, which they have asked Microsoft to resolve. Because of accumulation of unresolved issues, the parties agreed in 2006 to extend Section III.E for up to five more …

Competition Policy And Comparative Corporate Governance Of State-Owned Enterprises, D. Daniel Sokol

UF Law Faculty Publications

The legal origins literature overlooks a key area of corporate governance—the governance of state-owned enterprises ("SOEs"). There are key theoretical differences between SOEs and publicly-traded corporations. In comparing the differences of both internal and external controls of SOEs, none of the existing legal origins allow for effective corporate governance monitoring. Because of the difficulties of undertaking a cross-country quantitative review of the governance of SOEs, this Article examines, through a series of case studies, SOE governance issues among postal providers. The examination of postal firms supports the larger theoretical claim about the weaknesses of SOE governance across legal origins. In …

Order Without (Enforceable) Law: Why Countries Enter Into Non-Enforceable Competition Policy Chapters In Free Trade Agreements, D. Daniel Sokol

UF Law Faculty Publications

There has been an explosion in the past ten to fifteen years of bilateral and regional free trade agreements in Latin America (together, preferential free trade agreements or PTAs). The purpose of PTAs is to increase trade, regulatory, and investment liberalization. As trade liberalization requires more than just a reduction of tariffs, PTAs include "chapters" in a number of areas of domestic regulation. These chapters that address domestic regulation create binding commitments to liberalize domestic regulation that may impact foreign trade. Among chapters that address domestic regulation, many of the Latin American PTAs include a chapter on antitrust or competition …

Bargaining In The Shadow Of The European Microsoft Decision: The Microsoft-Samba Protocol License, William H. Page, Seldon J. Childers

UF Law Faculty Publications

The Microsoft-Samba agreement is by far the most important tangible outcome of the European Microsoft case. The EC’s other remedial order in the case, which required Microsoft to create a version of Windows without Windows Media Player, was an embarrassing failure. The Samba agreement, however, is significant because it requires Microsoft to provide, to its most important rival in the server market, detailed documentation of its communications protocols, under terms that allow use of the information in open source development and distribution. There is good reason to believe that Samba will be able to use the information to compete more …

China's Competition Policy Reforms: The Anti-Monopoly Law And Beyond, Bruce M. Owen, Su Sun, Wentong Zheng

UF Law Faculty Publications

In August 2007, China adopted the Antimonopoly Law, its first comprehensive antitrust legislation, thirteen years after the drafting of the law began. Such a protracted legislative process is highly unusual in China, and can only be explained by the controversies the law presents. This paper discusses the fundamental issues in China’s economy that give rise to the challenges China faced in the drafting and adoption of the Antimonopoly Law. Those fundamental issues include the role of state-owned enterprises, perceived excessive competition, mergers and acquisitions by foreign companies, administrative monopolies, and the enforcement of the Antimonopoly Law. How China will enforce …

Software Development As An Antitrust Remedy: Lessons From The Enforcement Of The Microsoft Communications Protocol Licensing Requirement, William H. Page, Seldon J. Childers

UF Law Faculty Publications

An important provision in each of the final judgments in the government's Microsoft antitrust case requires Microsoft to "make available" to software developers the communications protocols that Windows client operating systems use to interoperate "natively" (that is, without adding software) with Microsoft server operating systems in corporate networks or over the Internet. The short-term goal of the provision is to allow developers, as licensees of the protocols, to write applications for non-Microsoft server operating systems that interoperate with Windows client computers in the same ways that applications written for Microsoft's server operating systems interoperate with Windows clients. The long-term goal …

Communication And Concerted Action, William H. Page

UF Law Faculty Publications

It is a familiar scenario in U.S. antitrust litigation: The plaintiffs allege that a pattern of identical pricing (or refusals to deal) is "concerted" and therefore per se illegal; the defendant responds that the practice is merely "consciously parallel" or "interdependent" and therefore legal. Under U.S. law, to avoid summary judgment or judgment as a matter of law, a plaintiff must produce a "plus factor," evidence that "tends to exclude the possibility" that the defendants' actions were merely interdependent. Courts have identified various plus factors—for example, evidence that the alleged conduct was against the defendant's interest unless it was pursuant …

Monopolists Without Borders: The Institutional Challenge Of International Antitrust In A Global Gilded Age, D. Daniel Sokol

UF Law Faculty Publications

Antitrust has entered a gilded age of increased international cooperation and enforcement at levels never before seen. Yet, increased globalization creates challenges to combat international anticompetitive conduct. Part I introduces the Article. Part II provides a brief overview of the history of international antitrust. This overview departs from previous historical analyses as it focuses on participation within each of the international antitrust institutions to explain these historical limitations. Part III identifies and explores three case studies which are generally representative of international antitrust. These case studies have been chosen because the issues they address have been at the top of …

Workable Antitrust Remedies, William H. Page

UF Law Faculty Publications

Just over twenty years ago, Frank Easterbrook proposed renaming the Chicago School of antitrust analysis the “Workable Antitrust Policy School,” in recognition of its skepticism about “the ability of courts to make things better even with the best data.” Richard Epstein's brief study of consent decrees is in this tradition of circumspection in antitrust matters. Epstein proposes to analyze “the role consent decrees play in the antitrust law” by examining “the factual and legal disputes that gave rise” to various decrees. He finds many decrees of the past century misguided in their ambition, but concludes, on the evidence of the …

An Instrumental Theory Of Market Power And Antitrust Policy, Jeffrey L. Harrison

UF Law Faculty Publications

Since Judge Hand's pivotal opinion in United States v. Aluminum Company of America (Alcoa), the possession of monopoly power has been treated as presumptively legal. The focus of the antitrust laws since then has been on defining when that power is abused. This approach to market power cannot be squared with the prevailing view that antitrust law is grounded in economic theory. To understand why, one must see market power for what it is: the ability of a firm to raise prices above competitive levels and to profitably keep them there. Seen in this light, market power is indistinguishable from …

Economic Authority And The Limits Of Expertise In Antitrust Cases, John E. Lopatka, William H. Page

UF Law Faculty Publications

In antitrust litigation, the factual complexity and economic nature of the issues involved require the presentation of economic expert testimony in all but a few cases. This dependence on economics has increased in recent years because of the courts' narrowing of per se rules of illegality and the courts' expansion of certain areas of factual inquiry. At the same time, however, courts have limited the scope of allowable expert testimony through the methodological strictures of Daubert and its progeny and through heightened sufficiency requirements. In this Article, Professors Page and Lopatka make four important points about these judicially imposed constraints …

The Messenger Model: Don't Ask, Don't Tell?, Jeffrey L. Harrison

UF Law Faculty Publications

This article makes the case that the messenger model is either tacitly or inadvertently a "don't ask, don't tell" policy when it comes to competitor cooperation. In addition, this article presents an economic framework that explains how such a policy may benefit health care consumers. Finally, it is suggested that the "don't ask, don't tell" policy has created an area of per se legality that precludes an examination designed to distinguish consumer-benefiting practices from those that provide no benefit.

Sleeping With The Enemy: Tales Of Yankee Power, Globalization, And The Transformation Of Economy By Cartel In The European Union, Clifford A. Jones

UF Law Faculty Publications

Christopher Harding and Julian Joshua's Regulating Cartels in Europe: A Study of Legal Control of Corporate Delinquency (Regulating Cartels) is a significant and well-written book that deserves to be widely read by scholars, practitioners, and students in the United States as well as in Europe and other jurisdictions with antitrust laws. For those readers to whom European Community (E.C.) competition law remains largely a mystery, this book also serves as a good introduction to the European system because of its detailed description in the cartel context of the development of the European Community's substantive and procedural rules for handling enforcement …

Thurman Arnold's International Antitrust Legacy, William H. Page

UF Law Faculty Publications

In the decades before the World War II, a new economic philosophy favoring cooperation among competitors challenged the competitive model embodied in the antitrust laws. In the United States, the cooperative model had some successes in, for example, the Webb Pomerene Act of 1918, the associational activities of the 1920s, and the NRA codes of the 1930s. And, of course, antitrust law itself, after some false starts, came to recognize that some forms of cooperation are necessary for efficient production. Outside the United States, however, especially in the economic turbulence following World War I, policymakers adopted such an extreme form …

State Action And The Meaning Of Agreement Under Sherman Act: An Approach To Hybrid Restraints, John E. Lopatka, William H. Page

UF Law Faculty Publications

Antitrust observers are familiar with the two-part Midcal test for the immunity of state regulation from federal antitrust laws: the state must clearly articulate its policy to displace competition and must "actively supervise" any private conduct pursuant to the policy. But state action need not meet these requirements if it is "unilateral" and therefore does not conflict with Section 1. Only if a state-authorized restraint is "hybrid," combining state and private action in a way that resembles aprohibited agreement, need the restraint satisfy Midcal.

In this article, John Lopatka and Bill Page examine the history and current importance of …

The Antitrust Implications Of Collaborative Standard Setting By Insurers Regarding The Use Of Genetic Information In Life Insurance Underwriting, Robert H. Jerry Ii

UF Law Faculty Publications

Whenever two or more market participants collaborate to restrain trade, the potential applicability of federal and state antitrust laws must be considered. When the collaborating parties are insurance companies, a further layer of analysis may be necessary to determine whether the activity is exempt from federal antitrust regulation. Even if the activity enjoys an exemption, state antitrust law may have different things to say about the activity. Embedded in each of these levels of analysis are many difficult and complex subsidiary questions. In short, the law of insurance antitrust is not a subject for the faint of heart.

Antitrust law …

Who Suffered Antitrust Injury In The Microsoft Case?, John E. Lopatka, William H. Page

UF Law Faculty Publications

Most of the popular and scholarly discussions of Microsoft have focused on whether the defendant violated the law and, if so, whether the remedial order was appropriate. Never far from the surface in all of these discussions, however, has been the prospect of private antitrust suits that would inevitably follow a government victory. Indeed, numerous consumer class actions were filed against Microsoft in the wake of the District Court's issuance of its findings of fact. Should the District Court's decisions on liability stand, Microsoft can expect to face other suits by a variety of actors, including competitors, original equipment manufacturers …

Devising A Microsoft Remedy That Serves Consumers, John E. Lopatka, William H. Page

UF Law Faculty Publications

According to Judge Thomas Penfield Jackson, Microsoft was a “predacious” monopolizer that did extensive “violence . . . to the competitive process.” Through a “single, well-coordinated course” of anticompetitive action, it suppressed competition from Netscape's Navigator, an Internet browser, and from Sun's Java programming language and related technologies. Microsoft “mounted a deliberate assault upon entrepreneurial efforts, . . . placed an oppressive thumb on the scale of competitive fortune, . . . and trammeled the competitive process.” Having colorfully concluded that Microsoft's offenses were extreme, Judge Jackson deferred to the government's demand for a drastic remedy. He ordered that Microsoft …

Internet Regulation And Consumer Welfare: Innovation, Speculation, And Cable Bundling, John E. Lopatka, William H. Page

UF Law Faculty Publications

The goal of telecommunications policy has shifted from the control of natural monopoly to the promotion of competition. But the question remains how extensive and persistent the government's regulatory role should be in the operation of communications markets. One might think that regulators could find the answer to this question in antitrust law. But antitrust has itself been torn between interventionist and laissez-faire tendencies. Over the past two decades, the dominant Chicago School approach to antitrust has focused on economic efficiency, a standard that has led to the abandonment or contraction of some categories of liability. More recently, however, post-Chicago …

Monopolization, Innovation, And Consumer Welfare, John E. Lopatka, William H. Page

UF Law Faculty Publications

While most commentators and the enforcement agencies voice support for the consumer welfare standard, substantial disagreement exists over when economic theory justifies a presumption of consumer injury. Virtually all would subscribe to the theoretical prediction that an effective cartel will likely inflict consumer injury by reducing output and thus increasing prices. But the academic and judicial consensus disappears when the theory at issue predicts that a practice—a merger or a predatory pricing campaign, for example—will harm consumers in the future through some complex sequence of events.

In our view, the desire to protect innovation is legitimate, but its specific applications …

The Ftc's Procedural Advantage In Discovering Concerted Action, William H. Page

UF Law Faculty Publications

Scholars have long argued that Section 5 of the Federal Trade Commission Act can or should be interpreted to reach more conduct than Section 1 of Sherman Act - whether, in other words, there are gaps in the coverage of Section 1 that allow certain forms of anticompetitive conduct that Section 5 should condemn. Perhaps the most important issue in the interpretation of Section 1 concerns how courts should distinguish conscious parallelism from unlawful concerted action. In this paper, I argue that there is no substantive gap between the two antitrust statutes on this issue-both statutes prohibit (and permit) the …

Reexamining The Role Of Illinois Brick In Modern Antitrust Standing Analysis, Jeffrey L. Harrison

UF Law Faculty Publications

This Article argues that it is time for either the Court or Congress to reexamine Illinois Brick for the purpose of reconciling it with more general principles of antitrust standing. The overall goals of such an endeavor would be to ensure consistent treatment of similarly situated potential plaintiffs and to rationalize private antitrust enforcement.

Current Administration Of U.S. Antidumping And Countervailing Duty Laws: Implications For Prospective U.S.-Mexico Free Trade Talks, Stephen J. Powell, Craig R. Giesse, Craig L. Jackson

UF Law Faculty Publications

This Article discusses the current administration of the U.S. antidumping and countervailing duty laws in proceedings involving products from Mexico. Specifically, this Article begins by providing an overview of the basic statutory and regulatory provisions of the U.S. antidumping duty law, emphasizing the application of certain provisions in cases involving imports from Mexico. The Article then focuses its discussion upon recent developments in the U.S. countervailing duty law that have had a unique effect upon Mexican exporters. The Article continues by highlighting the antidumping and countervailing duty provisions of the recently concluded U.S.-Canada Free Trade Agreement (the "FTA" or "Agreement"). …