Antitrust and Trade Regulation Commons^™

Rethinking Merger Efficiencies, Daniel A. Crane

Law & Economics Working Papers

The two leading merger systems—those of the United States and the European Union—treat the potential benefits and risks of mergers asymmetrically. Both systems require considerably greater proof of efficiencies than they do of potential harms if the efficiencies are to offset concerns over the accumulation or exercise of market power. The implicit asymmetry principle has important systemic effects for merger control. Not only does it stand in the way of some socially desirable mergers, but it may indirectly facilitate the clearance of some socially undesirable mergers. Neither system explicitly justifies this asymmetry and none of the plausible justifications is normatively …

The Internet Ecosystem: The Potential For Discrimination, Dick Grunwald

Federal Communications Law Journal

Symposium: Rough Consensus and Running Code: Integrating Engineering Principles into Internet Policy Debates, held at the University of Pennsylvania's Center for Technology Innovation and Competition on May 6-7, 2010.

This Article explores how the emerging Internet architecture of "cloud computing," content distribution networks, private peering and data-center services can simultaneously foster a perception of "unfair" network access while at the same time enabling significant competition for services, content, and innovation. A key enabler of these changes is the emergence of technologies that lower the barrier for entry in developing and deploying new services. Another is the design of successful Internet …

Am I A Price Fixer? A Behavioural Economics Analysis Of Cartels, Maurice Stucke

Book Chapters

No abstract provided.

Credit Default Swaps And Clearing, Nazanin Baseri

Legislation and Policy Brief

In an article from 2000, an investigative journalist from The Banker warned against the hidden dangers of credit default swaps (CDS). Although CDSs can be a useful financial instrument for the banking industry, the article warned of the anonymity of credit derivatives, lack of transparency, and the potential for disaster. In an unfortunately accurate conclusion, the journalist opined that a crisis might occur because banks may not put in place the proper risk control systems in time to avert a disaster. Fast forward eight years and the financial meltdown of 2008 developed into one of the largest economic disasters in …

Brief Of Amicus Curiae American Antitrust Institute In Support Of Appellants And Reversal Of The District Court's Decision, Federal Trade Commission And State Of Minnesota V. Lundbeck, Inc. Nos. 10-3548 And 10-3549, United States Court Of Appeals For The Eighth District (2011), Christopher L. Sagers, W. Joseph Bruckner, Richard M. Brunell

Law Faculty Briefs and Court Documents

The basis for the District Court’s ruling was its view that cross-price elasticity of demand was “very low” between the two drugs acquired by Lundbeck, and therefore that they could not be in the same relevant market.2 AAI urges reversal on three grounds. First, assuming arguendo that crossprice elasticity was low – even if it were zero – the court’s approach fundamentally misapprehended the law. A lack of price competition between two functionally interchangeable products does not preclude a determination that they are in the same relevant market. Second, regardless of “low” cross-price elasticity, the acquisition removed an actual or …

Method, Community And Comparative Law: An Encounter With Complexity Science, David J. Gerber

All Faculty Scholarship

Assume that you are attending a symposium on comparative law being held in conjunction with the annual meeting of the American Society for Comparative Law. Comparative law scholars from many universities are present, and a few legal practitioners are attending as well. One speaker begins as follows: “This talk will be about complex adaptive systems—the emerging science of complexity.” Based on experience in similar contexts, I would anticipate several common reactions among members of the audience. The most common might be “he’s in the wrong room.” Another set of reactions is likely to be “What? What’s that? Never heard of …

Dominant Search Engines: An Essential Cultural & Political Facility, Frank Pasquale

Faculty Scholarship

When American lawyers talk about "essential facilities," they are usually referring to antitrust doctrine that has required certain platforms to provide access on fair and nondiscriminatory terms to all comers. Some have recently characterized Google as an essential facility. Antitrust law may shape the search engine industry in positive ways. However, scholars and activists must move beyond the crabbed vocabulary of competition policy to develop a richer normative critique of search engine dominance.

In this chapter, I sketch a new concept of "essential cultural and political facility," which can help policymakers recognize and address situations where a bottleneck has become …

Bożena Borkowska, Regulacja Monopolu Naturalnego W Teorii I Praktyce [Regulation Of A Natural Monopoly In Theory And Practice], Wydawnictwo Wrocławskiego Uniwersytetu Ekonomicznego, [Publishing House Of The Wroclaw University Of Economics], Wroclaw 2009, Pp. 229., Anna Fornalczyk

Yearbook of Antitrust and Regulatory Studies

No abstract provided.

Usługi Portów Lotniczych W Unii Europejskiej I W Polsce Ii – Wybrane Zagadnienia, Filip Czernicki, Tadeusz Skoczny

Monografie CARS/CARS Monographs

Praca zbiorowa pod redakcją prof. Tadeusza Skocznego i Filipa Czernickiego dotyczy usług portów lotniczych. Publikacja została stworzona na podstawie raportów badawczych przygotowanych przez pracowników Wydziału Zarządzania UW oraz Przedsiębiorstwa Państwowego „Porty Lotnicze”, w ramach drugiej edycji projektu badawczego zrealizowanego w 2011 r.(pierwsza edycja zakończona została w 2010 r.).

Książka przeznaczona jest dla osób zaangażowanych w zarządzanie portami lotniczymi, przedsiębiorców świadczących usługi lotniskowe i lotnicze, pracowników administracji publicznej związanych z sektorem lotnisk, a także dla pracowników naukowych i studentów, zainteresowanych tematyką ochrony konkurencji i regulacji.

Antitrust Review Of The At&T/T-Mobile Transaction, Maurice E. Stucke, Allen Grunes

College of Law Faculty Scholarship

In this Essay, we review AT&T Inc.’s proposed $39 billion acquisition of T-Mobile USA, Inc., under federal merger law, under the U.S. Department of Justice and Federal Trade Commission’s 2010 Horizontal Merger Guidelines, and with a focus on possible remedies. We find, under a rule of law approach, that the proposed acquisition is presumptively anticompetitive, and the merging parties in their public disclosures have failed to overcome this presumption. Next we find that under the Merger Guidelines, there is reason to believe that the transaction may result in higher prices to consumers under several different plausible theories. Finally, we turn …

Are People Self-Interested? The Implications Of Behavioral Economics On Competition Policy, Maurice Stucke

Book Chapters

No abstract provided.

Antitrust, Governance, And Postseason College Football, Michael Mccann

Law Faculty Scholarship

This Article examines the compatibility of the Bowl Championship Series (“BCS”) with federal antitrust law and the appropriateness of the federal government using its formal and informal powers to encourage a new format for postseason college football. The Article begins by examining the legality of the BCS under Sections 1 and 2 of the Sherman Antitrust Act. It then discusses the appropriateness of government actors concerning themselves with, and expending taxpayer dollars on, the scheduling of college football games. The Article concludes by offering possible changes to the scheduling structure of postseason college football, with an emphasis on voluntary, efficiency-promoting …

Supervising Managed Services, James B. Speta

Faculty Working Papers

Many Internet-access providers simultaneously offer Internet access and other services, such as traditional video channels, video on demand, voice calling, and other emerging services, through a single, converged platform. These other services—which can be called "managed services" because the carrier offers them only to its subscribers in a manner designed to ensure some quality of service—in many circumstances will compete with services that are offered by unaffiliated parties as applications or services on the Internet. This situation creates an important interaction effect between the domains of Internet access and managed services, an effect that has largely been missing from the …

Pharmaceutical Patent Litigation Settlements: Balancing Patent & Antitrust Policy Through Institutional Choice, Timothy A. Cook

Michigan Telecommunications & Technology Law Review

Should a branded pharmaceutical company be allowed to pay a generic competitor to stay out of the market for a drug? Antitrust policy implies that such a deal should be prohibited, but the answer becomes less clear when the transaction is packaged as a patent-litigation settlement. Since Congress passed the Hatch-Waxman Act, which encourages generic manufacturers to challenge pharmaceutical patent validity, settlements of this kind have been on the rise. Congress, the Department of Justice, and the Federal Trade Commission have condemned these agreements as anticompetitive and costly to American consumers, but none of these bodies has been able to …

Credit Suisse V. Billing: The Limited Impact On Application Of Antitrust Laws In Federally Regulated Industries Following The 2008 Financial Crisis And Beyond, Jessica A. Rebarber

Journal of Business & Technology Law

No abstract provided.

Pushing The Limits Of Global Governance: Trading Rights, Censorship And Wto Jurisprudence -- A Commentary On The China-Publications Case, Julia Ya Qin

Law Faculty Research Publications

For decades, China has maintained State import monopoly in cultural products. The opaque State trading operations ensure a maximum level of flexibility and efficacy in the government censorship of imports. The WTO judiciary held in the China-Publicationscase that this practice is inconsistent with China's trading rights commitments under its Accession Protocol and cannot be justified by the public morals exception of the General Agreement on Tariffs and Trade. To comply with the WTO ruling, China must restructure its censorship regime, which it apparently is not prepared to do. This article analyses the implications of the WTO decision and provides a …

No Good Whistle Goes Unpunished: Can We Protect European Antitrust Leniency Applications From Discovery?, Constanza Nicolosi

Northwestern Journal of International Law & Business

In recent years, the most successful tool in the antitrust arsenal of the European Commission and the Antitrust Division of the U.S. Department of Justice has proven to be leniency programs, which provide full immunity from fines to the first cartel-member that confesses its participation in the conspiracy. Even though European and U.S. leniency programs are fairly similar to one another, procedural differences may undermine their effectiveness. It has long been argued that potential discovery of corporate statements accompanying the leniency application before the Commission in subsequent proceedings in the United States would put the firms that cooperated with the …

Appropriate Liability Rules For Tying And Bundled Discounting, Thom Lambert

Faculty Publications

This article asserts a comprehensive response to Elhauge’s provocative arguments. With respect to tying, the article shows that governing Supreme Court precedent does not deem the non-foreclosure “power” effects of the practice to be anticompetitive and that those effects are unlikely to reduce social welfare in the long run, especially after accounting for dynamic efficiencies. With respect to bundled discounting, the article shows that Elhauge’s proposed liability rule is both inapposite to consumer harm and inadministrable and that both “linked” market foreclosure and a form of below-cost pricing are necessary for anticompetitive harm and should therefore be prerequisites to antitrust …

The Roberts Court And The Limits Of Antitrust, Thom Lambert

Faculty Publications

This article first describes the fundamental limits of antitrust and the decision-theoretic approach such limits inspire. It then analyzes the Roberts Court’s antitrust decisions, explaining how each coheres with the decision-theoretic model. Finally, it predicts how the Court will address three issues likely to come before it in the future: tying, loyalty rebates, and bundled discounts.

Comcast/Nbcu: The Fcc Provides A Roadmap For Vertical Merger Analysis, Jonathan Baker

Scholarly Articles in Law Reviews & Journals

The FCC’s analysis of the Comcast-NBCU transaction fills a gap in the contemporary treatment of vertical mergers by providing a roadmap for courts and litigants addressing the possibility of anticompetitive exclusion. The FCC identified the factors any judicial or administrative tribunal would likely consider today in analyzing whether a vertical merger would lead to anticompetitive input or customer foreclosure, and a range of economic methods potentially relevant to applying that template to the facts of a transaction. Notwithstanding the difference between administrative adjudication under a public interest standard and judicial decision-making under the Clayton Act, the legal framework and economic …