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Showing 9 of 119 Results in Market Definition
TOTM The merger guidelines should be revised, not only to provide clearer guidance, but because the current version makes it harder for the agencies to win . . .
The merger guidelines should be revised, not only to provide clearer guidance, but because the current version makes it harder for the agencies to win cases when they do challenge a merger. The reason is that the guidelines often don’t fit actual agency practice or modern economic theory. For example, part of the reason the DOJ lost the Oracle/Peoplesoft merger case was that its guidelines on unilateral effects do not match modern practice or theory. Such a mismatch makes it harder to convince judges that merger enforcement satisfies traditional rule of law concerns about providing advance notice of legal standards that are clear enough to guide private conduct and meaningfully constrain legal discretion. Here are the areas on which I would focus.
Read the full piece here.
TOTM 1. Do the Guidelines need revision? The Horizontal Merger Guidelines have served a very valuable purpose by making horizontal merger analysis much more sensible than . . .
1. Do the Guidelines need revision?
The Horizontal Merger Guidelines have served a very valuable purpose by making horizontal merger analysis much more sensible than it was prior to the 1980s.There is much less disagreement about horizontal merger policy than there is about vertical antitrust policy so some vertical guidelines would be especially welcome. Nevertheless, despite the lack of widespread disagreement about horizontal merger policy, it is desirable, though not critical, to improve the horizontal guidelines, making sure that they are up to date and relevant. I would be reluctant to change them significantly because they have served a valuable purpose by providing a consistent and durable framework for merger analysis primarily by focusing attention on the right questions to ask in merger analysis, namely how will price and competition be affected post merger.
TOTM 1. Do the Merger Guidelines Need Revision? Yes. Conceptually, the current Guidelines incorporate multiple strands of intellectual and legal history with respect to merger analysis . . .
1. Do the Merger Guidelines Need Revision?
Yes. Conceptually, the current Guidelines incorporate multiple strands of intellectual and legal history with respect to merger analysis that have been layered one upon the other over time, but never effectively integrated. This now encumbers the application of the Guidelines and may be inhibiting the government’s capacity to effectively and efficiently initiate merger challenges.
TOTM Of course, the Merger Guidelines need to be updated. Except for efficiencies, they haven’t been updated in 17 years. Lawyers and economists with a regular . . .
Of course, the Merger Guidelines need to be updated. Except for efficiencies, they haven’t been updated in 17 years. Lawyers and economists with a regular antitrust practice may not require an update in light of their knowledge of the 2006 Commentary, speeches and agency experience. But, the rest of the antitrust world does. The most obvious audience is the courts, who should know what the agencies believe is best practice. Moreover, as FTC Commissioner Kovacic has stressed, the world marketplace for antitrust ideas needs to have the guidance of the US enforcement agencies. They should not have to ferret it out from commentaries and speeches. The Merger Guidelines have been the most emulated feature of US antitrust enforcement worldwide. It would be shame to squander the leadership role.
TOTM The stated purpose of the DOJ/FTC Horizontal Merger Guidelines is to “reduce the uncertainty associated with enforcement of the antitrust laws.” The Guidelines have had . . .
The stated purpose of the DOJ/FTC Horizontal Merger Guidelines is to “reduce the uncertainty associated with enforcement of the antitrust laws.” The Guidelines have had limited success in achieving this goal. They generally succeed in two important dimensions and fail in one. First, the Guidelines lay out a five step analysis consisting of market definition, market shares, potential adverse effects, entry, and efficiencies. The procedure is generally consistent with practice, it is a reasonable way to parse the set of issues, and thus provides some real guidance. Second, the Guidelines explain how the Agencies view the economic issues associated with each of these five steps and define broad standards. This is also useful. The Guidelines describe, for example, that the Agencies evaluate entry on a timely, likely and sufficiency standard and explain the meaning of these standards. This type of content helps parties understand the Agencies’ approach and can reduce uncertainty. There are places where these standards are appropriate and reflect practice and other places where they can be improved.
TOTM The possibility of new Merger Guidelines has been much discussed in the antitrust community, particularly in light of appointment of the two new chief agency . . .
The possibility of new Merger Guidelines has been much discussed in the antitrust community, particularly in light of appointment of the two new chief agency economists, Carl Shapiro and Joe Farrell, who have done substantial work on the economics of horizontal mergers and market definition. Today, the FTC and DOJ announced a series of workshops and period for public comment to explore potential revision of the Guidelines…
TOTM Commissioner Rosch has offered a defense of the withdraw of the Section 2 Report. This is an important step and the Commissioner, who readers know . . .
Commissioner Rosch has offered a defense of the withdraw of the Section 2 Report. This is an important step and the Commissioner, who readers know I’ve criticized from time to time here, should be credited for laying out his specific objections to the Report. The objections are, in short, that the Report…
TOTM As evidenced by this on-line symposium, the handling of cases under the rubrics “monopolization,” “single firm conduct”, or “abuse of dominance” continues to be debated . . .
As evidenced by this on-line symposium, the handling of cases under the rubrics “monopolization,” “single firm conduct”, or “abuse of dominance” continues to be debated by the competition policy community. This debate, as evidenced by the Antitrust Division’s Sept. 2008 single firm conduct report and the FTC responses, is not restricted within the U.S. The European Union has published “Guidance Papers” on standards for exclusionary conduct under Article 82, and the Canadian Competition Bureau recently issued draft guidelines for prosecuting conduct under the abuse of dominance provisions of Sec. 79 of its Competition Act.
TOTM The Federal Trade Commission announced a puzzling complaint filed in a new consummated merger & monopolization case in the U.S. District Court for the District . . .
The Federal Trade Commission announced a puzzling complaint filed in a new consummated merger & monopolization case in the U.S. District Court for the District of Minnesota. Here’s the explanation of the case from the press release…
