Appendix N: Market Structure Law. TV Stations Ownership

Size: px
Start display at page:

Download "Appendix N: Market Structure Law. TV Stations Ownership"

Transcription

1 Appendix N: Antitrust and Market Structure Law Restrictions on size of ownership, and on vertical and horizontal ownership Examples Entry control: gov. licensing Merger Approvals Divestiture Media Ownership Regulation The FCC s new rules regarding how many media entities a company can own The new rules would limit the number of radio and television stations that a company can own in a particular market TV Stations Ownership Policy Goal: diversity in outlets Originally, US ownership ceiling of 5 stations, then12, then 20. Then reach to 35% of all US households 2004: FCC tries to expand to 45%, rebuffed by Congress 1

2 No cross-ownership of TV stations in same market with newspapers telephone companies cable corporations Theory: market structure determines firm behavior and performance Problem: Can lead to microfindustry by management of government Major US Antitrust Laws Sherman Antitrust Act of 1890 Section 1: restrictive agreements Section 2: monopoly power Antitrust violations can be criminal or civil Sen. John Sherman Sherman Act Section I: Every contract, combination or conspiracy, in restraint of trade or commerce, is hereby deemed to be illegal 2

3 Section II: Every person who shall monopolize, or attempt to monopolize, or combine or conspire with another person or persons to monopolize, any part of the trade or commerce if the several states or with foreign nations, shall be guilty of a felony Monopoly is not illegal per se But monopolies obtained through acquisitions, predatory pricing, exclusive dealing, or tying and bundling can be subject to challenge Suspect practices will be prohibited in the future or an acquisition or merger blocked Antitrust laws A firm could be split up This happened to (divestiture of theaters) Hollywood studios AT&T Microsoft (almost) NBC (one of its two radio networks) 1984: AT&T Divestiture. The Bell System broken into 8 pieces by antitrust case Competitive parts stay with AT&T (Long-distance, equipment). Monopolistic parts go to 7 RBOCs 3

4 US v. Microsoft 1998: US government and 20 states bring 2nd antitrust suit against Microsoft MS uses near monopoly the Windows 95 to dominate the Internet browser market US v. Microsoft 2000: District judge orders MS broken up in two parts 2001: judge partly overturned 2003: MS settlement with new administration Judge Thomas Pennfield Jackson Antitrust Supreme Court decided in Associated Press v. United States (1945) that antitrust laws apply also to mass media Clayton Act of Price Discrimination and price fixing 2. Tying and exclusive dealing contracts 3. Interlocking directors 4

5 Clayton Act of 1914 Prohibits Horizontal Agreements (Cartels) where Competitors restrict competition Price-fixing Restriction of output Group boycotts Market-division of territories or customers Restrictions of price advertising Anti-competitive Code of Ethics Robinson-Patman Act (1936) Forbade price rebates to selected buyers in the form of fees for brokerage, g, handling, g,processing, or any other services when those same fees were not offered Ethics of Pricing First level of ethical constraints requires that all transaction be voluntary. 5

6 Second (higher standard) of ethical restraint condems transactions with unequal information about the exchange. Selling a used car with a known defect. Antitrust Cases on Pricing Price fixing was regarded as per se illegal Even if in done from benign motive The case law Today, Courts make an initial cost-benefit analysis before applying the per se rule Turning point: Broadcast Music, Inc. (BMI) case In BMI, 4,000 authors and composers were granted nonexclusive rights to a trade association to license their musical compositions for a fee. 6

7 Licensees, like radio stations, were required to take a full ( blanket ) license to an artist s entire repertoire with fees based on the licensee s advertising revenues CBS challenged the blanket licensing arrangement as illegal price fixing by composers Court now required, for first time, that a price setting arrangement should first be examined to determine if it was efficient Court found that the BMI arrangement contained offsetting efficiencies. Reducing transaction costs Also, individual copyright owners could sell their compositions outside of the blanket license Principle: Agreements among competitors that raise, lower, or stabilize prices are per se unlawful Except when the restraint t is truly ancillary to a pro-competitive integration of the parties economic activities 7

8 Similarly, agreements among competitors to divide or allocate markets were held to be per se unlawful Today, courts may permit horizontal market and customer allocations that are ancillary to a pro-competitive integration of the parties economic activities Congress passed Newspaper Preservation Act (NPA) of 1970 to give daily newspapers some exemptions from antitrust laws Two newspapers pp within a market may form a joint operating agreement (JOA) when one is in probable danger of financial failure FCC and Justice Department also now consider impact on innovation Microsoft breakup proposal based on the argument that industry innovation was being slowed. Resistance to Innovationbased Antitrust policy Difficult to devise good remedies Hard to identify if specific cases where innovation is hurt by market power. 8

9 Not clear about effects of concentration on innovation Little evidence whether small or large companies have better track record with innovation Conscious Parallelism of Pricing? The courts have held that parallel behavior alone is insufficient to prove conspiracy Conscious Parallelism Requires evidence of correspondence or secret meetings, especially when quickly followed by simultaneous, identical actions on the part of the alleged conspirators, strong circumstantial evidence for agreement When defendants are unable to offer plausible legitimate business justifications for their communications or price actions. Market phenomena that cannot be explained rationally except as the product of concerted action (for example, price uniformity over a long period of time not caused by a rise in the cost of a common input ) have been held to be another factor 9

10 Matsushita Case In Matsushita, the alleged conspiracy consisted of a scheme by Japanese suppliers of electronics collectively to price below cost in the United States, to drive US firms from the market and later to raise prices to monopoly levels (a classic predatory pricing scheme) Matsushita Case the court held that the evidence of a conspiracy was insufficient Parallel pricing and related tactics ti are legal l ifthey are based on an independent business justification April 3, 2000: Judge rules that the software giant violated antitrust laws and consistently acted to hold onto its power over industry competitors. June 7, 2000: Judge Jackson orders the break up of Microsoft into two companies. 10

11 September 26, 2000: The Supreme Court refuses to hear the case. June 28, 2001: A federal appeals court reverses the breakup order. September 6, 2001: U.S. Justice Department (under a new administration) i i says it no longer seeks the breakup of Microsoft and wants to find a quick remedy in the antitrust case. Final Judgement: Microsoft must share its application programming interfaces with third-party companies However, the DOJ did not require Microsoft to change any of its code nor prevent Microsoft from tying other software with Windows in the future. 11

12 Microsoft Antitrust Europe March 24, 2004: European Commission requires Microsoft to unbundle Media Player from Windows and pay a $613 million fine for violating European Union antitrust law CNN (2004). Microsoft hit by record EU fine. Retrieved from: March 25, 2004 Microsoft Antitrust Europe December 2005: EU warning Microsoft that it did not disclose enough information about its server programs. July 12, 2006: EU fining MS for additional mil $ for defiance Associated Press Financial Wire (2006). Microsoft lodges formal appeal against $357 million EU antitrust fine, October 3, Iowa antitrust suit: (filed in 2000), is one of the last remaining i state t antitrust t proceedings against Microsoft. The Iowa case is unique because it allows consumers, as opposed dto just equipment manufacturers, to sue Microsoft directly. Broache, Anne (2007). Did Microsoft want to 'whack' Dell over its Linux dealings? Retrieved from: Broache, Anne (2007). Did Microsoft want to 'whack' Dell over its Linux dealings? Retrieved from: 12

13 13

13 C H A P T E R O U T L I N E

13 C H A P T E R O U T L I N E PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER Prepared by: Fernando Quijano w/shelly Tefft 2of 37 PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT Monopoly

More information

PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER. PEARSON Prepared by: Fernando Quijano w/shelly Tefft

PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER. PEARSON Prepared by: Fernando Quijano w/shelly Tefft PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Prepared by: Fernando Quijano w/shelly Tefft 2 of 25 PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT Monopoly

More information

INTERNATIONAL SECURITIES ASSOCIATION FOR INSTITUTIONAL TRADE COMMUNICATION ANTITRUST COMPLIANCE POLICY

INTERNATIONAL SECURITIES ASSOCIATION FOR INSTITUTIONAL TRADE COMMUNICATION ANTITRUST COMPLIANCE POLICY INTERNATIONAL SECURITIES ASSOCIATION FOR INSTITUTIONAL TRADE COMMUNICATION 1.0 Antitrust Compliance Policy ANTITRUST COMPLIANCE POLICY The policy of the International Securities Association for Institutional

More information

ANTITRUST COMPLIANCE GUIDELINES

ANTITRUST COMPLIANCE GUIDELINES ANTITRUST COMPLIANCE GUIDELINES I. POLICY It is the policy of the SMART CARD ALLIANCE to comply fully with the antitrust laws applicable to trade association activities. In furtherance of this policy,

More information

Microsoft cases in the US and Europe. Mikko Välimäki

Microsoft cases in the US and Europe. Mikko Välimäki Microsoft cases in the US and Europe Mikko Välimäki 4.2.2008 Structure Competition policy and IPRs US v. Microsoft Bundling, and other issues Commission v. Microsoft Bundling and interoperability Comparison

More information

CH 17 sample MC. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

CH 17 sample MC. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question. Class: Date: CH 17 sample MC Multiple Choice Identify the choice that best completes the statement or answers the question. 1. When a government agency establishes rules to influence economic activity,

More information

ABUSE OF DOMINANCE. John Pheasant Lecture to National Law University, Jodhpur 24 January 2014

ABUSE OF DOMINANCE. John Pheasant Lecture to National Law University, Jodhpur 24 January 2014 ABUSE OF DOMINANCE Lecture to National Law University, Jodhpur 24 January 2014 2 The Competition Laws Cartels Abuse of dominance Control of mergers 3 Competition Policy Goals The Protection of: Competitive

More information

Economics Institute for Competition Officials

Economics Institute for Competition Officials Global Antitrust Institute Economics Institute for Competition Officials November 2015 Predatory Pricing and Bundled Discounts Bruce H. Kobayashi, Professor of Law and Director, Global Antitrust Institute

More information

Chapter 17 Regulation and Antitrust Law

Chapter 17 Regulation and Antitrust Law Chapter 17 Regulation and Antitrust Law 17.1 Regulation 1) Regulation consists of rules administered by to influence economic activity by determining prices, product standards and types, and the conditions

More information

CH 17 sample MC Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

CH 17 sample MC Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question. Class: Date: CH 17 sample MC - 80 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Deregulation is defined as the a. use of government rules to regulate

More information

Merger Analysis and Anti-Trust

Merger Analysis and Anti-Trust Merger Analysis and Anti-Trust Merger: The process in which two or more independently owned firms join under the same ownership. This process could be a merger, takeover, integration, or acquisition. It

More information

Introduction to the Antimonopoly Law

Introduction to the Antimonopoly Law Introduction to the Antimonopoly Law Prof. Fumio Sensui Graduate School of Law, Kobe University E-mail: sensui@kobe-u.ac.jp What Practices are Subject to Control by the Antimonopoly Act? Cartels Monopolization

More information

CHAPTER 13 Antitrust Laws A detailed analysis of the antitrust law implications of the target company's activities is not required in every acquisitio

CHAPTER 13 Antitrust Laws A detailed analysis of the antitrust law implications of the target company's activities is not required in every acquisitio CHAPTER 13 Antitrust Laws A detailed analysis of the antitrust law implications of the target company's activities is not required in every acquisition. Except for the possibility of a target company's

More information

Antitrust Considerations in Healthcare. Cory A. Talbot ( )

Antitrust Considerations in Healthcare. Cory A. Talbot ( ) Antitrust Considerations in Healthcare Cory A. Talbot (10 26 17) What are we going to talk about? The basics of antitrust enforcement How antitrust enforcement works in some areas of the healthcare arena

More information

Introduction. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy

Introduction. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy Chapter 28 Regulation and Antitrust Policy in a Globalized Economy Introduction The term sticker shock has come into widespread use to describe a consumer s surprise and dismay about higher-than-anticipated

More information

Introduction. Learning Objectives. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy

Introduction. Learning Objectives. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy Chapter 28 Regulation and in a Globalized Economy Introduction Price fixing can occur in any industry when it is possible for firms to collude. Fashion-modeling agencies have become the subject of an antitrust

More information

Introduction. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy

Introduction. Learning Objectives. Chapter 28. Regulation and Antitrust Policy in a Globalized Economy Copyright 2011 by Pearson Education, Inc. Chapter 28 Regulation and Antitrust Policy in a Globalized Economy All rights reserved. Introduction The term sticker shock has come into widespread use to describe

More information

National Judicial Academy National Conference for Newly Elevated High Court Justices

National Judicial Academy National Conference for Newly Elevated High Court Justices National Judicial Academy National Conference for Newly Elevated High Court Justices 24-25 January, 2015 Bhopal, India Samuel Weinstein Attorney Legal Policy Section, Antitrust Division, U.S. Department

More information

INTERNATIONAL DIGITAL PUBLISHING FORUM ANTITRUST COMPLIANCE POLICY AND GUIDELINES

INTERNATIONAL DIGITAL PUBLISHING FORUM ANTITRUST COMPLIANCE POLICY AND GUIDELINES INTERNATIONAL DIGITAL PUBLISHING FORUM ANTITRUST COMPLIANCE POLICY AND GUIDELINES It is the policy of the International Digital Publishing Forum ("IDPF" or "the Forum") to comply with all antitrust and

More information

... University of Deusto School of Law

... University of Deusto School of Law UNIVERSIDAD DE DEUSTO ANTITRUST PROGRAM OUTLINE Professor Jesse W. Markham, Jr. Marshall P. Madison Professor of Law University of San Francisco markham@usfca.edu January 18, 19 and 20 and 22, 2011 SESSION

More information

UNDERSTANDING ANTITRUST AND IT; ECONOMIC IMPLICATIONS

UNDERSTANDING ANTITRUST AND IT; ECONOMIC IMPLICATIONS UNDERSTANDING ANTITRUST AND IT; ECONOMIC IMPLICATIONS Fifth Edition E. Thomas Sullivan Irving Younger Professor of Law and Dean Emeritus University of Minnesota Law School Jeffrey L. Harrison Stephen C.

More information

ANTITRUST COMPLIANCE POLICY

ANTITRUST COMPLIANCE POLICY ANTITRUST COMPLIANCE POLICY 1 Objective: Antitrust or competition laws are designed to preserve and foster fair and honest competition in the marketplace. 2 Applicability/Scope: All Team Schein Members

More information

Microeconomics: Principles, Applications, and Tools

Microeconomics: Principles, Applications, and Tools Microeconomics: Principles, Applications, and Tools NINTH EDITION Chapter 13 Controlling Market Power: Antitrust and Regulation Learning Objectives 13.1 Define a natural monopoly and explain the averagecost

More information

The importance of these laws and the serious consequences of violating them make it crucial for you to understand how they

The importance of these laws and the serious consequences of violating them make it crucial for you to understand how they Antitrust Guidelines Policy Number: 1800 Applies To: All Policy Owner: Regan MacPherson Current Revision Date: 04-MAY-2016 Previous Revision Date: 06-SEP-2013 Last Annual Review Date: 18-DEC-2012 Policy

More information

Overview: Limiting Market Power

Overview: Limiting Market Power Overview: Limiting Market Power Introduction to Anti-trust Price Fixing Monopolization Predatory Pricing Tying and Extension of Monopoly Other Practices Common Property Resources 1 People of the same trade

More information

Trade Competition Act B.E Office of Trade Competition Commission

Trade Competition Act B.E Office of Trade Competition Commission Trade Competition Act B.E. 2560 Office of Trade Competition Commission Trade Competition Act B.E. 2542 Act Governing Trade with Excessive Profits B.E. 2490 (Price control) Act Governing Prices of Goods

More information

AGENDA Tues 1/19. QOD #5: Fruit Flies Partner Practice CH 20 P #3,4 HW Review CH 18 Q#1, 4-7, 10-13

AGENDA Tues 1/19. QOD #5: Fruit Flies Partner Practice CH 20 P #3,4 HW Review CH 18 Q#1, 4-7, 10-13 AGENDA Tues 1/19 QOD #5: Fruit Flies Partner Practice CH 20 P #3,4 HW Review CH 18 Q#1, 4-7, 10-13 Macro Topic Selection: Intro to Team Teach HW: Read pp 472-482 Q#3,5,7 Parent Syllabus Review DUE: Mon

More information

Econ 323 Economic History of the U.S. Prof. Eschker Fall 2018

Econ 323 Economic History of the U.S. Prof. Eschker Fall 2018 Econ 323 Economic History of the U.S. Prof. Eschker Fall 2018 2 nd Half of the Semester Essays due Thursday Read instructions Read examples Read grading rubric Classroom Participation 1/6 of your grade

More information

Antitrust Traps in the Hospitality Industry. Presenters. Penalties and Enforcement. February 3, 2010 Houston, Texas

Antitrust Traps in the Hospitality Industry. Presenters. Penalties and Enforcement. February 3, 2010 Houston, Texas Antitrust Traps in the Hospitality Industry February 3, 2010 Houston, Texas Presenters Banks Brown, Partner, McDermott Will & Emery, New York, NY General Counsel for the American Hotel & Lodging Association,

More information

Competition Law & Policy in India

Competition Law & Policy in India Competition Law & Policy in India Prepared by Competition Commission of India June 2004 Competition Is a situation in a market in which firms or sellers independently strive for the buyers patronage in

More information

Understanding Antitrust Laws, Competition, the Economy, and Their Impact on Our Everyday Lives

Understanding Antitrust Laws, Competition, the Economy, and Their Impact on Our Everyday Lives 75(2), pp 68 72 2011 National Council for the Social Studies Looking at the Law Understanding Antitrust Laws, Competition, the Economy, and Their Impact on Our Everyday Lives Edited by Catherine Hawke

More information

CHAPTER 8: SECTION 1 A Perfectly Competitive Market

CHAPTER 8: SECTION 1 A Perfectly Competitive Market CHAPTER 8: SECTION 1 A Perfectly Competitive Market Four Types of Markets A market structure is the setting in which a seller finds itself. Market structures are defined by their characteristics. Those

More information

Merger Review in the United States and the European Union. Jeffrey I. Shinder Constantine & Partners

Merger Review in the United States and the European Union. Jeffrey I. Shinder Constantine & Partners Merger Review in the United States and the European Union Jeffrey I. Shinder Constantine & Partners What is Antitrust? Fairness Law Protect smaller firms from larger firms Disperse business power Distribute

More information

ANTITRUST LAW TABLE OF CONTENTS

ANTITRUST LAW TABLE OF CONTENTS ANTITRUST LAW TABLE OF CONTENTS INTRODUCTION I. ANTITRUST DEFINED... 3 II. STATUTORY FRAMEWORK... 3 III. ECONOMICS OF MARKET POWER... 3 HORIZONTAL RESTRAINTS IV. BACKGROUND ON CARTELS... 5 V. EARLY CASE

More information

Agency Name: Office of Competition and Consumer Protection, Poland Date: December 16, 2008 Tying & Bundled Discounting

Agency Name: Office of Competition and Consumer Protection, Poland Date: December 16, 2008 Tying & Bundled Discounting Agency Name: Office of Competition and Consumer Protection, Poland Date: December 16, 2008 Tying & Bundled Discounting This part of the questionnaire seeks information on ICN members analysis and treatment

More information

Oligopoly C H A P T E R C H E C K L I S T. When you have completed your study of this chapter, you will be able to

Oligopoly C H A P T E R C H E C K L I S T. When you have completed your study of this chapter, you will be able to Oligopoly CHAPTER17 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Describe and identify oligopoly and explain how it arises. 2 Explain the dilemma

More information

Product Distribution in the United States and Canada The Same but Different

Product Distribution in the United States and Canada The Same but Different Product Distribution in the United States and Canada The Same but Different John Roberti Partner, Mayer Brown LLP Jay Holsten Partner, Torys LLP March 10, 2011 2011 Mayer Brown LLP and Torys LLP. All rights

More information

Perfect Competition Chapter 7 Section 1

Perfect Competition Chapter 7 Section 1 Perfect Competition Chapter 7 Section 1 Four Conditions of Perfect Perfect competition is a market structure in which a large number of firms all produce the same product. Many buyers and sellers Identical

More information

THE TETRA PAK CASE: ARE LOYALTY REBATES TREATED DIFFERENTLY BY THE CHINESE ANTITRUST REGULATOR?

THE TETRA PAK CASE: ARE LOYALTY REBATES TREATED DIFFERENTLY BY THE CHINESE ANTITRUST REGULATOR? THE TETRA PAK CASE: ARE LOYALTY REBATES TREATED DIFFERENTLY BY THE CHINESE ANTITRUST REGULATOR? 1 BY MICHAEL HAN, ANDREW SKUDDER & DAVID BOYLE 1 I. INTRODUCTION On November 16, 2016, the State Administration

More information

GUIDE TO COMPETITION LAW FEBRUARY 2014

GUIDE TO COMPETITION LAW FEBRUARY 2014 GUIDE TO COMPETITION LAW FEBRUARY 2014 GUIDE TO COMPETITION LAW 2 TABLE OF CONTENT 1 Introduction 3 1.1 Why did SMARTRAC develop this Guide to Competition Law 3 1.2 To whom this guide applies 3 1.3 What

More information

Chapter 7: Market Structures

Chapter 7: Market Structures SCHS SOCIAL STUDIES What you need to know UNIT THREE 1. Describe 4 conditions that are in place for a perfectly competitive market 2. Describe and give characteristics of a monopoly 3. Describe and give

More information

SD ASSOCIATION ANTITRUST POLICY AND GUIDELINES

SD ASSOCIATION ANTITRUST POLICY AND GUIDELINES SD ASSOCIATION ANTITRUST POLICY AND GUIDELINES The purpose of this Antitrust Policy and Guidelines is to provide a brief overview of the antitrust and competition laws applicable to the SD Association

More information

Price Discrimination

Price Discrimination Price Discrimination Introduction Two major pieces of federal legislation deal with two aspects of price discrimination: 1. Clayton Act (1914) 2. Robinson-Patman Act (1936). Clayton Act Statutory Background

More information

Title: ANTITRUST Last Revision: 5/04/2015 Rev. 5. Responsible Officer: Marcus V. Brown I. POLICY SUMMARY

Title: ANTITRUST Last Revision: 5/04/2015 Rev. 5. Responsible Officer: Marcus V. Brown I. POLICY SUMMARY Page 1 of 18 Subject Matter Expert: Wendy Hickok Robinson Responsible Officer: Marcus V. Brown Approved By: Corporate Compliance Committee I. POLICY SUMMARY It is Entergy s policy to comply strictly with

More information

Competition Law and the Airline Industry

Competition Law and the Airline Industry Competition Law and the Airline Industry Module 21 Istanbul Technical University Air Transportation Management, M.Sc. Program Air Law, Regulation and Compliance Management 12 February 2015 Kate Markhvida

More information

A Guide to Competition Law

A Guide to Competition Law Behaviour in Competition A Guide to Competition Law RZ_ROC_Bro_Behaviour_Competition_e.indd 1 11.0.10 14:06 Behaviour in Competition RZ_ROC_Bro_Behaviour_Competition_e.indd 2 11.0.10 14:06 1 Contents I

More information

Antitrust Final Examination

Antitrust Final Examination Antitrust Final Examination 2006 2 hours The examination is worth 980 total points. The examination has two parts. The first part consists of an essay question worth 700 points. The second part consists

More information

LESSON FIVE MAINTAINING COMPETITION

LESSON FIVE MAINTAINING COMPETITION LESSON FIVE MAINTAINING COMPETITION LESSON DESCRIPTION This lesson introduces the rationale for maintaining and strengthening competition, and illustrates the U.S. experience with antitrust laws and other

More information

Outline. Introduction. Oligopoly and Game Theory. Industrial Organization is the Study of Imperfect Competition. Cooperation.

Outline. Introduction. Oligopoly and Game Theory. Industrial Organization is the Study of Imperfect Competition. Cooperation. Outline K. Graddy Industrial Organization What is industrial organization? Topics to be covered Industrial Organization and Antitrust History of Industrial Economics Oligopoly and Game Theory Industrial

More information

CEMEX. Global Antitrust Compliance Policy

CEMEX. Global Antitrust Compliance Policy CEMEX Global Antitrust Compliance Policy We at CEMEX have a long-standing commitment to ethics and integrity, which allows us to conduct our business in a fair and transparent manner. All business strategies

More information

4/13/2018. Evolving Standards on Resale Price Maintenance, Tying and Other Vertical Restraints. Program Overview

4/13/2018. Evolving Standards on Resale Price Maintenance, Tying and Other Vertical Restraints. Program Overview Evolving Standards on Resale Price Maintenance, Tying and Other Vertical Restraints Practising Law Institute: Developments in Antirust Law & Regulation 2018 Craig G. Falls 2018 Dechert LLP Program Overview

More information

Antitrust Compliance Manual. VMware, Inc. Legal Department

Antitrust Compliance Manual. VMware, Inc. Legal Department Antitrust Compliance Manual VMware, Inc. Legal Department Approved July 2, 2010 Table of Contents Page A. Introduction and Statement of Corporate Policy... 1 B. Relations with Competitors... 1 1. Horizontal

More information

Antitrust Compliance Guidelines. Approved by the PODS Board of Directors April 21, 2011

Antitrust Compliance Guidelines. Approved by the PODS Board of Directors April 21, 2011 Antitrust Compliance Guidelines Approved by the PODS Board of Directors April 21, 2011 PODS Antitrust Compliance Guidelines One of the major goals of the Pipeline Open Data Standard Association (PODS)

More information

The Competition and Antitrust Laws Prohibit collusion between competitors, such as price-fixing. Prohibit monopolization through mergers. Examine geog

The Competition and Antitrust Laws Prohibit collusion between competitors, such as price-fixing. Prohibit monopolization through mergers. Examine geog COMPETITION AND THE ANTITRUST LAWS by Paul Stephen Dempsey Director, Institute of Air & Space Law McGill University Copyright 2010 by Paul Stephen Dempsey The Competition and Antitrust Laws Prohibit collusion

More information

Single-Product Loyalty Discounts and Rebates

Single-Product Loyalty Discounts and Rebates Agency Name: Turkish Competition Authority Date: 3.11.2008 Single-Product Loyalty Discounts and Rebates This part of the questionnaire seeks information on ICN members analysis and treatment of loyalty

More information

competition policy r Palgrave Publishers Ltd 1

competition policy r Palgrave Publishers Ltd 1 Definition Competition policy, also known as antitrust policy in the United States, is a body of legislated law designed to promote and maintain competition in markets. Abstract This article discusses

More information

Aditya Bhattacharjea Delhi School of Economics

Aditya Bhattacharjea Delhi School of Economics Aditya Bhattacharjea Delhi School of Economics Allocative efficiency (P > MC: deadweight loss). BUT it may not be feasible to have competition with P = MC where there are strong economies of scale (natural

More information

Antitrust Compliance Update. D. Bruce Hoffman David A. Higbee Hunton & Williams LLP April 17, 2012

Antitrust Compliance Update. D. Bruce Hoffman David A. Higbee Hunton & Williams LLP April 17, 2012 Antitrust Compliance Update D. Bruce Hoffman David A. Higbee Hunton & Williams LLP April 17, 2012 Overview I. Background II. Overview of Antitrust Law and Recent Enforcement Highlights III. International

More information

Agency Name: Superintendencia de Industria y Comercio Date:

Agency Name: Superintendencia de Industria y Comercio Date: Agency Name: Superintendencia de Industria y Comercio Date: Single-Product Loyalty Discounts and Rebates This part of the questionnaire seeks information on ICN members analysis and treatment of loyalty

More information

Spotting and Avoiding Antitrust and Other Unfair Competition Claims and Issues

Spotting and Avoiding Antitrust and Other Unfair Competition Claims and Issues Spotting and Avoiding Antitrust and Other Unfair Competition Claims and Issues Presented by J. Alexander Hershey, Esq. Hosted by the Association of Corporate Counsel Western Pennsylvania Chapter October

More information

Antitrust and Healthcare. Cory A. Talbot (4 15)

Antitrust and Healthcare. Cory A. Talbot (4 15) Antitrust and Healthcare Cory A. Talbot (4 15) What are we going to talk about? The (very) basics of antitrust enforcement How antitrust enforcement works in the healthcare arena Examples to help identify

More information

Abuse of Dominance Under Art 102 Towards multiple standards?

Abuse of Dominance Under Art 102 Towards multiple standards? Abuse of Dominance Under Art 102 Towards multiple standards? Giorgio Monti 9 July 2011 Article 102 Any abuse by one or more undertakings of a dominant position within the common market or in a substantial

More information

Price Maintenance & Vertical Restraints. KING & WOOD MALLESONS

Price Maintenance & Vertical Restraints. KING & WOOD MALLESONS Price Maintenance & Vertical Restraints KING & WOOD MALLESONS 2015 www.kwm.com Overview of the Legal Basis and the Regulators Anti-monopoly Law ( AML ) Monopoly agreements Abuse of dominance Concentrations

More information

AAOE Anti-Trust Policy

AAOE Anti-Trust Policy 2016 AAOE Anti-Trust Policy WHY DISCUSSIONS OF PRICE/COST ARE NOT PERMITTED ON THE LISTSERVES OR DURING AAOE SPONSORED ACTIVITIES AMERICAN ASSOCIATION OF ORTHOPAEDIC EXECUTIVES 6602 East 75th Street, Suite

More information

ANTITRUST FOR PURCHASING PROFESSIONALS Protecting Competition in Florida

ANTITRUST FOR PURCHASING PROFESSIONALS Protecting Competition in Florida ANTITRUST FOR PURCHASING PROFESSIONALS Protecting Competition in Florida Attorney General of Florida Antitrust Division Lizabeth Brady Chief, Multistate Antitrust Enforcement ANTITRUST LAWS SHERMAN ACT

More information

Agency Name: The Office for the Protection of Competition, Czech Republic Date: 17 th October 2008 Tying & Bundled Discounting

Agency Name: The Office for the Protection of Competition, Czech Republic Date: 17 th October 2008 Tying & Bundled Discounting Agency Name: The Office for the Protection of Competition, Czech Republic Date: 17 th October 2008 Tying & Bundled Discounting This part of the questionnaire seeks information on ICN members analysis and

More information

China, Xiaomen,

China, Xiaomen, PROSECUTING CARTELS: THE USE OF INDIRECT AND DIRECT EVIDENCE Kamil Nejezchleb The Czech Competition Authority Cartel Department China, Xiaomen, 19. 10. 2017 OUTLINE Prosecuting cartels general introduction

More information

Gates Industrial Corporation plc Global Antitrust and Fair Competition Principles

Gates Industrial Corporation plc Global Antitrust and Fair Competition Principles Gates Industrial Corporation plc Global Antitrust and Fair Competition Principles August 2017 Dear Colleagues, As a leading global manufacturer, Gates business activities are subject to a variety of statutory

More information

The 10th ASCOLA Conference Abuse Regulation in Competition Law Past, Present and Future at Meiji University, Tokyo, May 2015

The 10th ASCOLA Conference Abuse Regulation in Competition Law Past, Present and Future at Meiji University, Tokyo, May 2015 The 10th ASCOLA Conference Abuse Regulation in Competition Law Past, Present and Future at Meiji University, Tokyo, 21 23 May 2015 Andreas Fuchs University of Osnabrück Margin Sqeeze as a Stand-alone Form

More information

COLLABORATIONS WITH COMPETITORS AND ANTITRUST COMPLIANCE. Donald P. Gallo, Esq. Reinhart Boerner Van Deuren s.c. November 26, 2012

COLLABORATIONS WITH COMPETITORS AND ANTITRUST COMPLIANCE. Donald P. Gallo, Esq. Reinhart Boerner Van Deuren s.c. November 26, 2012 COLLABORATIONS WITH COMPETITORS AND ANTITRUST COMPLIANCE By Donald P. Gallo, Esq. Reinhart Boerner Van Deuren s.c. November 26, 2012 When considering a joint venture or other collaboration with a competitor,

More information

1 of 23. Controlling Market Power: Antitrust and Regulation. Economics: Principles, Applications, and Tools O Sullivan, Sheffrin, Perez 6/e.

1 of 23. Controlling Market Power: Antitrust and Regulation. Economics: Principles, Applications, and Tools O Sullivan, Sheffrin, Perez 6/e. 1 of 23 2 of 23 In 1997, a U.S. court blocked the proposed merger of Staples and Office Depot, the nation s two largest office- supply retailers. P R E P A R E D B Y FERNANDO QUIJANO, YVONN QUIJANO, AND

More information

PRICE FIXING, BID RIGGING, AND MARKET ALLOCATION SCHEMES: WHAT THEY ARE AND WHAT TO LOOK FOR

PRICE FIXING, BID RIGGING, AND MARKET ALLOCATION SCHEMES: WHAT THEY ARE AND WHAT TO LOOK FOR PRICE FIXING, BID RIGGING, AND MARKET ALLOCATION SCHEMES: WHAT THEY ARE AND WHAT TO LOOK FOR An Antitrust Primer This primer briefly describes the most common antitrust violations and outlines those conditions

More information

Doing Deals: Avoiding Antitrust Pitfalls During Due Diligence and Transition Planning

Doing Deals: Avoiding Antitrust Pitfalls During Due Diligence and Transition Planning Doing Deals: Avoiding Antitrust Pitfalls During Due Diligence and Transition Planning 5 When competitors start considering a merger, they should involve their antitrust counsel from the beginning. Managing

More information

Regulating Public Utility Performance The Law of Market Structure, Pricing and Jurisdiction Scott Hempling

Regulating Public Utility Performance The Law of Market Structure, Pricing and Jurisdiction Scott Hempling Regulating Public Utility Performance The Law of Market Structure, Pricing and Jurisdiction Scott Hempling Regulatory Law: Purposes, Power, Rights and Responsibilities Market Structure: From Monopolies

More information

Basic Economics Chapter 17

Basic Economics Chapter 17 1 Basic Economics Chapter 17 Oligopoly Oligopoly: (1) only a few sellers (2) offer similar or identical products (3) interdependent Game theory (how people behave in strategic situations): (1) choose among

More information

Predatory Pricing. 2. Please list your jurisdiction s criteria for an abuse of dominance/monopolization based on predatory pricing.

Predatory Pricing. 2. Please list your jurisdiction s criteria for an abuse of dominance/monopolization based on predatory pricing. Predatory Pricing This questionnaire seeks information on ICN members analysis and treatment of predatory pricing claims. Predatory pricing typically involves a practice by which a firm temporarily charges

More information

High-Tech Antitrust Carl Shapiro

High-Tech Antitrust Carl Shapiro High-Tech Antitrust Carl Shapiro Mergers and Acquisitions Oracle/PeopleSoft Merger Sirius/XM Radio Merger? High-Tech Rules of the Road Monopoly O.K., Monopolization NOT Microsoft Case: U.S. & E.U. Versions

More information

Chapter 7 Market Structures

Chapter 7 Market Structures Chapter 7 Market Structures Section 1 Competition 2 Perfect Competition Perfect competition is when a large number of buyers and sellers exchange identical products under five conditions. There should

More information

Lesson 1: Why do we have antitrust laws?

Lesson 1: Why do we have antitrust laws? 9.6.06 Lesson 1: Why do we have antitrust laws? 45 minutes LESSON OVERVIEW In this lesson, students focus on the basic building blocks of antitrust law. Students will learn about the key provisions of

More information

Part III: Market Structure 12. Monopoly 13. Game Theory and Strategic Play 14. Oligopoly and Monopolistic Competition

Part III: Market Structure 12. Monopoly 13. Game Theory and Strategic Play 14. Oligopoly and Monopolistic Competition Part III: Market 12. 13. Game ory and Strategic Play 14. Oligopoly and Monopolistic Competition 1 / 37 Chapter 12 2015.12.11. 2 / 37 1 2 3 4 5 6 7 3 / 37 Q: Can a monopoly ever be good for society? 4 /

More information

COMPETITION AND CONSUMER PROTECTION COVERAGE AS OF 1 FEBRUARY 2018

COMPETITION AND CONSUMER PROTECTION COVERAGE AS OF 1 FEBRUARY 2018 COMPETITION AND CONSUMER PROTECTION COVERAGE AS OF 1 FEBRUARY 2018 Access regimes... 3 Accessorial and individual liability... 3 Anticompetitive arrangements... 3 Application of Competition and Consumer

More information

NATIONAL COUNCIL FOR PROBLEM GAMBLING ANTITRUST COMPLIANCE PROGRAM HOW TO RECOGNIZE AND AVOID ANTITRUST PROBLEMS

NATIONAL COUNCIL FOR PROBLEM GAMBLING ANTITRUST COMPLIANCE PROGRAM HOW TO RECOGNIZE AND AVOID ANTITRUST PROBLEMS NATIONAL COUNCIL FOR PROBLEM GAMBLING ANTITRUST COMPLIANCE PROGRAM HOW TO RECOGNIZE AND AVOID ANTITRUST PROBLEMS NATIONAL COUNCIL FOR PROBLEM GAMBLING ANTITRUST COMPLIANCE PROGRAM HOW TO RECOGNIZE AND

More information

Economics Chapter 8 Competition and Markets

Economics Chapter 8 Competition and Markets Economics Chapter 8 Competition and Markets CHAPTER 8: SECTION 1 - A Perfectly Competitive Market Four Types of Markets o A is the setting in which a seller finds itself. Market structures are defined

More information

Economics Chapter 8 Competition and Markets

Economics Chapter 8 Competition and Markets Economics Chapter 8 Competition and Markets CHAPTER 8: SECTION 1 - A Perfectly Competitive Market Four Types of Markets o A is the setting in which a seller finds itself. Market structures are defined

More information

17 REGULATION AND ANTITRUST LAW. Chapter. Key Concepts

17 REGULATION AND ANTITRUST LAW. Chapter. Key Concepts Chapter 17 REGULATION AND ANTITRUST LAW Key Concepts Market Intervention Regulation consists of rules administered by a government agency to that determine prices, product standards and types, and conditions

More information

Oligopoly. Quantity Price(per year) 0 $120 2,000 $100 4,000 $80 6,000 $60 8,000 $40 10,000 $20 12,000 $0

Oligopoly. Quantity Price(per year) 0 $120 2,000 $100 4,000 $80 6,000 $60 8,000 $40 10,000 $20 12,000 $0 Oligopoly 1. Markets with only a few sellers, each offering a product similar or identical to the others, are typically referred to as a. monopoly markets. b. perfectly competitive markets. c. monopolistically

More information

Unless otherwise stated, the questions concern unilateral conduct by a dominant firm or firm with significant market power.

Unless otherwise stated, the questions concern unilateral conduct by a dominant firm or firm with significant market power. Agency Name: Competition Commission, South Africa Date: October 2008 Tying & Bundled Discounting This part of the questionnaire seeks information on ICN members analysis and treatment of tying and bundled

More information

CPI Antitrust Chronicle April 2014 (1)

CPI Antitrust Chronicle April 2014 (1) CPI Antitrust Chronicle April 2014 (1) The Comcast-TWC Merger: Limit the Government s Options Jarod Bona Bona Law PC www.competitionpolicyinternational.com Competition Policy International, Inc. 2014 Copying,

More information

Discussion Points. Presented by the Business and Industry Advisory Committee (BIAC) to the OECD Competition Committee

Discussion Points. Presented by the Business and Industry Advisory Committee (BIAC) to the OECD Competition Committee The Voice of OECD Business Discussion Points Presented by the Business and Industry Advisory Committee (BIAC) to the OECD Competition Committee Cartels: Approaches to Cartel Investigations * (for the OECD

More information

Once Upon a Time... There was an antitrust compliance program. Policy 20.5 (adopted in 1954)

Once Upon a Time... There was an antitrust compliance program. Policy 20.5 (adopted in 1954) Once Upon a Time... There was an antitrust compliance program Policy 20.5 (adopted in 1954) No employee shall enter into any understanding, agreement, plan, or scheme, expressed or implied, formal or informal,

More information

Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development

Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development Unclassified DAF/COMP/WD(2016)72 DAF/COMP/WD(2016)72 Unclassified Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 09-Nov-2016 English

More information

Antitrust Compliance Manual

Antitrust Compliance Manual Antitrust Compliance Manual January 2010 2010 The Williams Companies, Inc. All rights reserved. 0110/01423 AntiTrust Policy_cover_120809.indd 1 1/5/10 2:44:40 PM Introduction To all Williams employees:

More information

EU Competition Law and E-Commerce: Love-hate relationship?

EU Competition Law and E-Commerce: Love-hate relationship? EU Competition Law and E-Commerce: Love-hate relationship? Giorgio Monti 22 August 2015 Three themes 1. What does EU competition law have to say with regard to the way e-commerce is developing? 2. How

More information

Antitrust and You: Antitrust Compliance Procedures

Antitrust and You: Antitrust Compliance Procedures Antitrust and You: Antitrust Compliance Procedures Objective The American Gas Association (AGA) and its member companies are committed to full compliance with all laws and regulations, and to maintaining

More information

Perfect Competition. Chapter 7 Section Main Menu

Perfect Competition. Chapter 7 Section Main Menu Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices and output like in a perfectly competitive market?

More information

1. Purpose. This policy provides Employees with guidance on behaviours or actions that may be noncompliant with anti-trust or anti-competition laws.

1. Purpose. This policy provides Employees with guidance on behaviours or actions that may be noncompliant with anti-trust or anti-competition laws. Section: pg. 2 1. Purpose AET is committed to conducting our business with honesty and integrity. It is AET s policy to comply with all laws governing AET s global business operations and activities including

More information

HOW TO CONTACT US. Private Bag x 23 Lynnwood Ridge Telephone: +27 (12) Facsimile: +27 (12)

HOW TO CONTACT US. Private Bag x 23 Lynnwood Ridge Telephone: +27 (12) Facsimile: +27 (12) HOW TO CONTACT US We offer a variety of services designed to clarify the Act and to improve the level of participation of SMEs and HDI firms. For these services, you may contact us at: Postal Address:

More information

THE AMERICAN INSTITUTE OF ARCHITECTS ANTITRUST COMPLIANCE STATEMENT AND PROCEDURES

THE AMERICAN INSTITUTE OF ARCHITECTS ANTITRUST COMPLIANCE STATEMENT AND PROCEDURES THE AMERICAN INSTITUTE OF ARCHITECTS ANTITRUST COMPLIANCE STATEMENT AND PROCEDURES September 2002 The American Institute of Architects 1735 New York Avenue, NW Washington, DC 20006 AIA Info Central (800)

More information

Antitrust Compliance Procedures

Antitrust Compliance Procedures Antitrust Compliance Procedures Adopted by the Northeast Gas Association Board of Directors June 4, 2003 Objective The Northeast Gas Association (NGA) and its member companies are committed to full compliance

More information

Economic Fundamentals:

Economic Fundamentals: Economic Fundamentals: Vertical and Coordinated Effects in Mergers Debra J. Aron, Ph.D. Navigant Economics Northwestern University May 27, 2016 Disclaimer This presentation covers only a sampling of the

More information