Antitrust and Trade Regulation Commons^™

The Japanese Antimonopoly Act And Nonassertion Of Patents Provisions: Microsoft's Conflict With The Japan Fair Trade Commission, Courtney E. Mertes

Washington International Law Journal

In recent decades, Japan has strengthened its antimonopoly regulations. Now, a country that historically favored internal collusion continues to develop a stringent antimonopoly regime that encourages competition. The Japan Fair Trade Commission ("JFTC") enforces the Japanese Act Concerning the Prohibition of Private Monopoly and the Maintenance of Fair Trade ("Antimonopoly Act") and its provisions dealing with unfair trade practices. The JFTC takes a strong stance in enforcement of the Act and violators follow its recommendations. The JFTC has charged Microsoft Corporation ("Microsoft") with abuse of a dominant bargaining position and unfair trade practices in its use of restrictive provisions, such …

Pharmabulletin Issue 2, Summer 2005, Mark Heller, Hollie Baker, Robert Barry, James Burling, Suyong Kim

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

In May 2005, the Food and Drug Administration (FDA) issued draft guidance on the type of information to be posted on its new “Drug Watch” website—a site intended to identify drugs for which it is actively evaluating early safety signals. At this time, the FDA plans only to post information on drug products regulated by the Center for Drug Evaluation and Research, therefore vaccines, blood products and medical devices shall be excluded.

Unilateral Effects: The Enforcement Act Under The Old Ec Merger Regulation, Claus-Dieter Ehlermann, Axel Gutermuth

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

The reform of the EC Merger Regulation was preceded by an animated debate about whether the traditional "dominance" test allowed the Commission to challenge mergers that did not lead to single firm or collective dominance in the traditional sense, but nevertheless may have reduced competition to the detriment of consumers. The authors submit that the dominance test failed to reach such situations of "unilateral" or "non-coordinated" effects. The old Merger Regulation therefore suffered from a potential "enforcement gap" that was closed only by the legislative change to the "significant impediment of effective competition" test. National jurisdictions still using variants of …

Antitrust And Competition Law Update: Agencies Send A Strong Message On Hsr Filing, William J. Kolasky, Robert Bell, James W. Lowe, Leon Greenfield, A. Douglas Melamed, Veronica Kayne, Ali Stoeppelwerth, Janet Ridge

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

The Federal Trade Commission and Department of Justice’s Antitrust Division last week each announced enforcement actions against and settlements with parties that alleged failed to make required notifications of transactions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Each case resulted in a significant fine (one of $800,000 and one of $1 million) and signaled the agencies’ intent to pursue vigorously parties that fail -- intentionally or negligently -- to meet their obligations under the HSR Act. Moreover, both cases address the scope of the HSR Act’s “investment only” exemption and show that the agencies construe it strictly …

Virginia Cellular And Highland Cellular: The Fcc Establishes A Framework For Eligible Telecommunications Carrier Designation In Rural Study Areas, Mark C. Bannister

Federal Communications Law Journal

In 1996, Congress passed the first substantial rework of the Communications Act of 1934. This Act was intended to benefit consumers by encouraging competition and establishing a series of explicit mechanisms for assuring universal service. One of the outcomes is the creation of significant controversy over the federal, and in some cases, state universal service subsidy for the class of telecommunications providers typically known as wireless or cellular and defined by federal statute as "commercial mobile radio service" ("CMRS"). Incumbent local exchange carriers ("ILECs") characterize these subsidies as a windfall and as unnecessary to provide wireless phone service. They argue …

Hide It Or Unbundle It: A Comparison Of The Antitrust Investigations Against Microsoft In The U.S. And The E.U., Sue Ann Mota

The University of New Hampshire Law Review

[Excerpt] "Microsoft Corporation, the world’s largest software company, has been facing antitrust scrutiny globally. In the U.S., after what’s been called the antitrust trial of the century, a consent decree was reached between Microsoft, the United States government, and several states, that closely resembled the litigated remedy that the remaining states received. Only Massachusetts appealed the litigated remedy, which was approved by the appeals court on June 30, 2004. In the United States, Microsoft was required to hide, but not remove, the Internet Explorer browser on the Windows Operating System. While antitrust litigation was ongoing in the United States against …

The Ghost Of Telecommunications Past, Philip J. Weiser

Michigan Law Review

When the canon for the field of information law and policy is developed, Paul Starr's The Creation of the Media will enjoy a hallowed place in it. Like Lawrence Lessig's masterful Code and Other Laws of Cyberspace, Starr's tour de force explains how policymakers have made a series of "constitutive choices" about how to regulate different information technologies that helped to shape the basic architecture of the information age. In so doing, Starr displays the same literary and analytical skill he used in writing the Pulitzer Prizewinning The Social Transformation of American Medicine, the firsthand experience he gained …

Digital Crossroads, Kathleen Wallman

Federal Communications Law Journal

Book Review: Digital Crossroads: American Telecommunications Policy in the Internet Age, Jonathan E. Nuechterlein & Philip J. Weiser, Cambridge, Mass., MIT Press, 2005, 670 pages.

A review of Digital Crossroads: American Telecommunications Policy in the Internet Age, by Jonathan E. Nuechterlein and Philip J. Weiser, MIT Press, 2005. Most practitioners of communications law are familiar with the necessity of teaching themselves enough economics, engineering, and politics to practice competently and comfortably in an area that is inherently interdisciplinary. Likewise, many professors who teach telecommunications from a variety of disciplinary perspectives are familiar with the frustration of locating a text that …

New Objectives For Cfius: Foreign Ownership, Critical Infrastructure, And Communications Interception, James A. Lewis

Federal Communications Law Journal

Global economic integration creates new risks for national security. Foreign ownership of telecommunications service providers is an area of expanding concern. Foreign ownership could multiply opportunities for espionage by increasing foreign entities' access to U.S. communications and networks as well as increasing the complexity of defenders' tasks. Foreign ownership could make law enforcement communications interception more difficult. Foreign ownership could also increase the ability of a potential opponent to disrupt critical infrastructure and the services the foreign-controlled entities provide. These concerns create interest in improving existing processes for managing the risks associated with foreign ownership--such responsibility principally lies with the …

State Regulatory Approaches To Voip: Policy, Implementation, And Outcome, Robert Cannon

Federal Communications Law Journal

This Article explores the many perspectives on Voice over Internet Protocol ("VoIP"). The notion of the Article is not to resolve the definitive approach to VolP. Rather, this Article suggests that the process of the approach has itself become muddled. Individuals quibble, contrasting the superiority of one perspective over another, negating the reason why they were looking in the first place. This Article is the second part of a project to survey and analyze state VoIP policy. The first part of the project surveyed state VolP regulatory activity. This part seeks to place that precedent in a centrifuge, segregating out …

Looking Beyond The Digital Divide, Yolanda D. Edwards

Federal Communications Law Journal

Book Review: Digital Nation: Toward an Inclusive Information Society, Anthony G. Wilhelm, Cambridge, Mass., MIT Press, 2004, 184 pages.

A review of Anthony G. Wilhelm's Digital Nation: Toward an Inclusive Information Society, MIT Press, 2004. An important attempt to frame the debate about the importance of technological literacy, this book explores world-wide successes and failures to bring technology to the masses and provides a plan to accomplish it in the United States.

Discriminatory Filtering: Cipa's Effect On Our Nation's Youth And Why The Supreme Court Erred In Upholding The Constitutionality Of The Children's Internet Protection Act, Katherine A. Miltner

Federal Communications Law Journal

Congress introduced the Children's Internet Protection Act ("CIPA") in order to filter obscene and indecent material in response to a perceived threat to members of the public, specifically minors, who are exposed to pornographic material on the Internet. The provisions of CIPA have provoked tension between two competing interests: protecting minors from cyberpornography, and safeguarding First Amendment rights. This Note argues that the Supreme Court erred by upholding the constitutionality of CIPA. As a result of the Supreme Court's decision, the nation's youth will have restricted access to constitutionally protected information. The Court improperly relied on a provision of the …

Traceability And Labeling Of Genetically Modified Crops, Food, And Feed In The European Union, Margaret Rosso Grossman

Journal of Food Law & Policy

In the last several years, European Union (E.U.) policy has encouraged development of biotechnology, including genetically modified (GM) (that is, bioengineered) agricultural crops. The E.U. developed a strategy for life sciences and biotechnology, directed toward improving the competitiveness of the European biotechnology sector and the general situation for European biotechnology. E.U. documents have acknowledged the potential significance of genetically modified crops-for example, the conclusion in a recent report that "the potential of plant genomics and biotechnology to deliver major advances in our lifestyles and prosperity is enormous. [Biotechnology] can also maintain and enhance the competitiveness of E.U. farmers and food …

European Union Food Law Update, Nicole Coutrelis

Journal of Food Law & Policy

The purpose of this update is to present the main events that have taken place each six months in the food law sector in the European Union (E.U.). This presentation will cover June through December 2004, but is not exhaustive. This update will not include detailed discussions of regulations, such as authorizations of new additives for animal feed or registrations of new geographic names. Instead it will concentrate on fundamental topics and focus on food, which excludes from our scope questions regarding the management of agricultural products (Common Agricultural Policy, or CAP). However, some questions which legally pertain to the …

Do European Union Non-Tariff Barriers Create Economic Nuisances In The United States?, Thomas P. Redick, Michael J. Adrian

Journal of Food Law & Policy

The European Union's new traceability system for biotech crops will lead to the proliferation of non-tariff barriers affecting biotech crops. This, in turn, will lead to economic dislocation and attendant liability in the United States, which is losing billions of dollars in export trade. A chain of complex legal problems will arise for United States-based companies as they strive to trace particular genetically modified (GM) events and avoid commingling. The European Union (E. U) tracing law for biotech crops applies at each stage of commodity commerce, from grain shippers leading back through elevators, growers, and seed companies. Warranty liability could …

Revising Seed Purity Laws To Account For The Adventitious Presence Of Genetically Modified Varieties: A First Step Towards Coexistence, A. Bryan Endres

Journal of Food Law & Policy

Adoption of genetically modified (GM) seed varieties in the United States, Canada, and South America continues to expand, with GM crops comprising almost 76 million hectares and over 93 percent of the total biotech cropland worldwide. As an increasing number of farmers plant GM varieties, the potential for adventitious mixture of genetically modified DNA with products produced via organic and conventional (non-GM) methods also increases. Many consumers of organic and identity-preserved products, however, object to the adventitious presence of genetically modified DNA at even low levels. Accordingly, the ability of farmers to choose between conventional, organic, or GM crop production …

United States Food Law Update, Michael T. Roberts, Margie Alsbrook

Journal of Food Law & Policy

The one constancy about food law in the United States is change, especially in a rapidly-developing food industry. Innovations in food technology, shifts in popular culture and tastes, concerns of safety and nutrition, pressures from international markets, all contribute to the changing landscape of food law. These changes are reflected in new federal statutes, regulations, administrative decisions, and judicial decisions.

Trading And Distribution In China, Lester Ross, Kenneth Zhou

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

Trading and distribution rights were major issues in the negotiation of China’s entry to the World Trade Organisation, a process which took 14 years before concluding in late 2001. Trading rights, i.e. the right to import and export goods, had historically been mainly restricted to a small number of largely sector-specific state-owned monopoly trading enterprises. Trading rights were modestly liberalised in the years preceding China’s entry, but generally remained tightly restricted.

“Start-Up Aid” For Low Cost Carriers– A Policy Perspective, Sven Völcker

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

On 7 February 2005, the European Commission published draft “Community guidelines on the financing of airports and start-up aid to airlines departing from regional airports” for consultation. This article focuses on the Draft Guidelines’ statements on “start-up aid,” which seek to integrate the Commission’s statements in last year’s Charleroi decision into a consistent state aid policy framework. It is submitted here that such an attempt is highly problematic, given the absence of a coherent and objective justification for start-up aid in its proposed form. The Commission should not depart from its long-standing hostility to operating aid for reasons of perceived …

Mario Monti’S Legacy: A U.S. Perspective, William Kolasky

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

The departure of Commissioner Mario Monti from his post as the EC Commissioner for competition policy provides a good opportunity to reflect upon the achievements and perceived failures of the European Commission in the field of antitrust law over the past five years. This paper attempts to do so on the basis of six core principles of sound competition policy. Under the first principle, it is undisputable that the Commission under Commissioner Monti’s leadership has been at the forefront of the international efforts undertaken in the fight against cartels. Second, despite some weaknesses in areas such as conglomerate mergers or …

Statecraft, Trade And The Order Of States, Dennis M. Patterson

ExpressO

No abstract provided.

Pharma Bulletin - Spring 2005, Mark Heller, Hollie Baker, Robert Barry, James Burling, Suyong Kim

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

FDA to Create Drug Safety Board In February 2005, the Food and Drug Administration (FDA) announced that it will create a new independent Drug Safety Oversight Board (DSB) to oversee the management of drug safety issues within the Center for Drug Evaluation and Research (CDER). The FDA Commissioner will appoint individuals from the FDA and medical experts from other Health and Human Services agencies and government departments to the DSB, which also will consult with other medical experts and patient and consumer group representatives. Additionally, the FDA is proposing a new “Drug Watch” web page for emerging data and risk …

Coming To America: Protecting Japanese Baseball Players Who Want To Play In The Major Leagues, Elliott Z. Stein

Cardozo Journal of International and Comparative Law

The note examines the legal implications of the US-Japanese Agreement, which governs the movement of Japanese baseball players to Major League Baseball (MLB). It highlights how this agreement restricts players' negotiation rights and discusses potential legal challenges under antitrust and labor laws. The author argues that the agreement, created after disputes like Hideki Irabu's case, may face legal challenges, particularly from Japanese players and the MLB Players Association (MLBPA), and suggests modifications to ensure fairness and prevent litigation.

Moving Public Law Out Of The Deference Trap In Regulated Industries, Jim M. Rossi

Vanderbilt Law School Faculty Publications

This Article argues that public law has fallen into what I call a deference trap in addressing conflicts in deregulated industries, such as telecommunications and electric power. The deference trap describes a judicial reluctance to intervene in disputes involving political institutions, such as regulatory agencies and states. By reassessing the deference trap across the legal doctrines that are effecting emerging telecommunications and electric power markets, public law can deliver much more for deregulated markets. The deference trap poses a particular cost as markets are deregulated, one that may not have been present during previous regulatory eras in which public and …

Political Bargaining And Judicial Intervention In Constitutional And Antitrust Federalism, Jim A. Rossi

Vanderbilt Law School Faculty Publications

Federal judicial deference to state and local regulation is at the center of contentious debates regarding the implementation of competition policy. This Article invokes a political process bargaining framework to develop a principled approach for addressing the appropriate level of judicial intervention under the dormant commerce clause and state action immunity from antitrust enforcement. Using illustrations from network industries, it is argued that, at core, these two independent doctrines share a common concern with political (not only market) failure by focusing on the incentives faced by powerful stakeholders in state and local lawmaking. More important, they share the common purpose …

Oracle In Brussels, Christian Duvernoy, Sven Völcker

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

It was hands across the water when both a U.S. district court and the European Commission cleared the $10.3 billion merger of Oracle and PeopleSoft. The Department of Justice, which had opposed the deal, had decided not to appeal its defeat in the San Francisco court, and it is thought that the Commission took this as a sign that U.S. regulators would not take it amiss if their European counterparts also let the merger proceed. In any event, there was none of the resentment and outrage that bubbled over not so long ago when U.S. antitrust authorities approved the GE/Honeywell …

The Ftc And State Action: Evolving Views On The Proper Role Of Government, John T. Delacourt, Todd Zywicki

George Mason University School of Law Working Papers Series

The state action doctrine was born in an era of exceptional confidence in government, with governmental entities widely regarded as unbiased and conscientious defenders of the public interest. Over time, however, more cautious and skeptical theories of government began to gain sway. In particular, the school of thought known as “public choice” – which holds that governmental entities, like private firms, will act in their economic self-interest – began to influence both legal theory and competition policy. Indeed, a close examination of recent state action case law suggests that public choice thinking has driven a slow, but consistent, evolution of …

Antitrust And Inefficient Joint Ventures: Why Sports Leagues Should Look More Like Mcdonald’S And Less Like The United Nations, Stephen F. Ross

ExpressO

Antitrust law generally favors joint ventures that allow separate firms to integrate economic functions while continuing to compete as independent entities. In evaluating the risks to competition that joint ventures could pose, insufficient attention has been paid to the risk that joint ventures with market power may be structured so that the parties, acting in their independent self-interest, will prevent the venture from providing innovative goods and services responsive to consumer demand. In these cases, it may be better if a single firm provided services rather than having them provided jointly.

We illustrate this problem by challenging the conventional wisdom …

Are Public Sector Assets By Nature Insuitable For Financing Transnational Investments? , Lucien A. Rapp

ExpressO

Does the legal regime applicable to publicly owned assets constitute a policy instrument to protect public investment? In what way can this benefit public sector property ? Are the structures of the regime sufficiently well established to provide investors with enough certainty?

This paper aims to answer these questions by taking a trans-national perspective. The main concern is to resolve the problems of ownership or non-ownership of public sector assets in the context of financing trans-national investments.

This paper responds to this issue by examining (in two stages) the various consequences for trans-national investment; the first regarding the acquisition of …

Antitrust Enforcement: Four New Investigations Opened By The Agcm In The First Months Of 2005, Antonio Capobianco, Stefano Fratta

Wilmer Cutler Pickering Hale and Dorr Antitrust Series

The first three months of this year have witnessed extensive enforcement activity by Italy’s Autorità Garante per la Concorrenza ed il Mercato (“AGCM”). In the closing 90 days of the chairmanship of Professor Tesauro, former Advocate General at the European Court of Justice, the AGCM initiated a number of investigations for infringement of EC competition rules in various key markets: natural gas, telecommunication services, pharmaceuticals and postal services. The cases reported below are of particular interest since they are the first examples of enforcement of EC competition rules by the AGCM in the new “modernised” system of European enforcement.