Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Tuesday, June 14, 2011

How to deal with resale price maintenance: What can we learn from empirical results?

Posted by D. Daniel Sokol

Jurgen-Peter Kretschmer (University of Marburg) asks How to deal with resale price maintenance: What can we learn from empirical results?

ABSTRACT: The US Supreme Court’s overruling of the pre-existing per se illegality of resale price maintenance and the recommendation of a rule of reason approach in the Leegin decision (2007), raise the question whether other jurisdictions should follow this approach and what future assessments of resale price maintenance cases should look like. Policy decisions have to rely on the importance of various theories concerning welfare effects of resale price maintenance practises, which must be supported by empirical studies. Unfortunately, not much attention has been paid to this topic by researchers. Nevertheless, the few existing empirical studies allow for the analysis and discussion of existing assessment proposals. Furthermore, the paper derives a new recommended assessment procedure for resale price maintenance from a special point of view by combining empirical results with the decision-theoretic approach of optimal sequential investigation rules.

June 14, 2011 | Permalink | Comments (0) | TrackBack (0)

Monday, June 13, 2011

Less Antitrust Enforcement Under Obama Than Bush? So Say Some Plaintiff Lawyers

Posted by D. Daniel Sokol

A news story by Reuters suggests as one theory for fewer private cases that there is less antitrust enforcement under Obama than under Bush. I think that there are a number of factors at play including changes in antitrust case law on both substantive and procedural grounds, class action legislation, and some other factors all of which combine to produce fewer private cases.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

The New European Law of Unfair Commercial Practices and Competition Law

Posted by D. Daniel Sokol

Bert Keirsbilck (HU Brussel ) has written a book on The New European Law of Unfair Commercial Practices and Competition Law.

BOOK ABSTRACT: Since 2005 the law of unfair commercial practices has undergone a revolution. This book presents the first comprehensive and critical examination of Directives 2005/29/EC concerning unfair business-to-consumer commercial practices and 2006/114/EC concerning misleading and comparative advertising. The book offers the first detailed analysis of the various ways in which the two Directives have been transposed in the United Kingdom, Germany, the Netherlands, Belgium and France, with a particular focus on incorrect transposition. The analysis includes an overview of the enforcement possibilities before national courts and authorities, and as such will be a valuable source for all practitioners, policy makers and academics working in the field of unfair trade law.

Ultimately the aim of the book is to expound a sound interpretation of the relationship between unfair trade law and competition law in Europe, and it therefore engages in an original examination of these two cornerstones of European economic law. The author argues that unfair trade law and competition law should be understood as 'living apart together' - complementary but autonomous and sometimes even conflicting.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

Unilateral Effects Analysis and the Upward Pricing Pressure Model: Evidence from the Federal Trade Commission

Posted by D. Daniel Sokol

Malcolm B. Coate (FTC) addresses Unilateral Effects Analysis and the Upward Pricing Pressure Model: Evidence from the Federal Trade Commission.

ABSTRACT: This paper explores the Federal Trade Commission’s unilateral effects analysis from the perspectives of both the 1992 and 2010 Merger Guidelines. Historical enforcement data is used to define a diversion benchmark of 30 percent, but is unable to detect a role for the margin variable. A related analysis shows a deterministic model based on the number of significant rivals appears to out-perform alternative structural proxies. Case study evidence explores the factors that tend to affect the implications of the structural model, with evidence showing diversions are low suggesting closing merger investigations involving few rivals, while evidence of high diversions supports a challenge even in the presence of an unusually high number of rivals. A broader case study identifies a range of considerations under which a unilateral effects model should not be applied to a differentiated products merger. This paper is a reorganized and streamlined version of an earlier working paper "Counting Rivals or Measuring Share: Modeling Unilateral Effects for Merger Analysis," 2011, available at SSRN: http://ssrn.com/abstract=1722846.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

National Developments in the Intersection of IPR and Competition Law From Maglite to Pirate Bay

Posted by D. Daniel Sokol

Hans Henrik Lidgard (Lund University Law) has edited National Developments in the Intersection of IPR and Competition Law From Maglite to Pirate Bay.

BOOK ABSTRACT: This is the third volume in the series Swedish Studies in European Law, produced by the Swedish Network for European Legal Studies, a national network comprised of Swedish universities focusing on recent legal developments within European Union law. In this volume, Swedish researchers with specific interests in European Market law - intellectual property rights, competition and marketing law - have joined forces to review recent Swedish legislation and case-law of particular European interest in national Swedish Courts or the Court of Justice of the European Union ('CJEU'). The volume also includes comments on general EU developments from a Swedish perspective.

The essays focus upon a number of significant recent developments, including, amongst others, an essay on a proposed reform to the Swedish Copyright Act, a report of the recent Swedish decision concerning the Mini-Mag, two different analyses of the future for illicit file sharing following the recent Pirate Bay litigation, and essays on refusal to supply and the new Unfair Commercial Practices Directive and its implementation in Sweden.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

An experimental study on multi-dimensional spatial product differentiation

Posted by D. Daniel Sokol

Przemyslaw Kusztelak (Faculty of Economic Sciences, University of Warsaw) undertakes An experimental study on multi-dimensional spatial product differentiation.

ABSTRACT:This study presents the results of an experiment on spatial differentiation of products in Hotelling-type models with different grades of complexity for companies’ choices of space. Three models were compared, including models with a single decision variable (single-dimensional space with automatically calculated prices), two decision variables (single-dimensional space with prices assigned by the participants) and three decision variables (bi-dimensional space with prices assigned by the participants). The research revealed that in more complex conditions, the product differentiation was smaller and that the prices were lower than in a simple environment when the Nash equilibrium was confirmed. Companies that function in complex conditions do not take advantage of the opportunity to make high profits based on product differentiation. This has a greater impact on price rigidity with respect to product variety than could be theoretically predicted. Strategies based on product differentiation are, therefore, less profitable than expected based on theoretical predictions.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

UK Merger Control

Posted by D. Daniel Sokol

Jonathan Parker (A&O) and Adrian Majumdar (RBB) (with Simon Pritchard A&O) have a new book on UK Merger Control.

BOOK ABSTRACT: This book is a fully up-to-date, comprehensive guide to the law, economics and practice of UK merger control law, including a review of the recently revised guidelines of the Office of Fair Trading and the Competition Commission. This guide presents an integrated legal and economic assessment of the substantive appraisal of mergers as well as from the perspective of both law and economics. The guide examines in detail the following topics: the history of the Enterprise Act and its development from the Fair Trading Act; the various regulatory bodies that form the institutional structure of the UK merger control regime; enterprises subject to merger control regulation and the jurisdictional thresholds of the Enterprise Act; the relationship of the Enterprise Act with the European Merger Regulation; the procedural and substantive practice of the Office of Fair Trading; references to, and in-depth reviews by, the Competition Commission; appeals to the Competition Appeal Tribunal; public interest mergers and the role of the Secretary of State; and merger remedies. Uniquely, this book also provides insights into the substance and procedure of UK merger control from Simon Pritchard, formerly Senior Director of Mergers, OFT.

June 13, 2011 | Permalink | Comments (0) | TrackBack (0)

Sunday, June 12, 2011

Call for Papers: The EU Competition Law Model and the Mediterranean Countries: Lessons from South-East Europe and the EuropeMed Countries

Posted by D. Daniel Sokol

See the attached brochure.

Download Call for papers workshop Montecatini 2012

June 12, 2011 | Permalink | Comments (0) | TrackBack (0)