Antitrust & Competition Policy Blog

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

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Monday, September 5, 2011

Disqualification Orders for Directors Involved in Cartels

Posted by D. Daniel Sokol

Andreas Stephan (University of East Anglia Law) has a forthcoming article on Disqualification Orders for Directors Involved in Cartels.

ABSTRACT: This paper examines the importance of director disqualification to effective cartel enforcement. It reviews Competition Disqualification Orders in the UK, sets out the justification for such orders and considers their main shortcomings. The paper then asks whether they would be a recommended practice for the European Commission.

September 5, 2011 | Permalink | Comments (0) | TrackBack (0)

Who Searches for Low Prices? Population Characteristics and Price Dispersion in the Market for Prescription Drugs

Posted by D. Daniel Sokol

Adrienne M. Ohler (Department of Economics, Illinois State University) has posted Who Searches for Low Prices? Population Characteristics and Price Dispersion in the Market for Prescription Drugs.

ABSTRACT: We examine the relationship between population characteristics and price dispersion for 75 prescription drugs in five markets. Based on models of price dispersion, we consider that search costs are likely lower for the elderly, who are repeat purchasers. Expected benefits from search are likely higher for low income households, who lack insurance. Our results are consistent with the hypothesis that for communities with a large percentage of elderly and poor population, search effort is greater for pharmaceutical drugs, causing lower price dispersion. By understanding the characteristics of who searches for low drug prices, we begin to identify the motives of consumers that might also lead to search for the lowest cost healthcare provider or lowest cost insurance. The results suggest that the 2004 Medicare legislation that closed the pharmaceutical donut hole may have reduced search by the elderly, increased price dispersion, and potentially increased the average price of prescription drugs.

September 5, 2011 | Permalink | Comments (0) | TrackBack (0)

Competition and Industry Structure for International Rail Transportation

Posted by D. Daniel Sokol

Guido Friebel, Universite de Toulouse, EHESS, IDEI, Institute for the Study of Labor (IZA), Marc Ivaldi, Toulouse School of Economics, and Jerome Pouyet, analyze Competition and Industry Structure for International Rail Transportation.

ABSTRACT: This paper investigates various options for the organization of the railway industry when network operators require the access to multiple national networks to provide international (freight or passenger) transport services. The EU rail system provides a framework for our analysis. Returns-to-scale and the intensity of competition are key to understanding the impact of vertical integration or separation between infrastructure and operation services within each country in the presence of international transport services. We also consider an option in which a transnational infrastructure manager is in charge of offering a coordinated access to the national networks. In our model, it turns out to be an optimal industry structure.

September 5, 2011 | Permalink | Comments (0) | TrackBack (0)

The Korea-EU FTA: Implications for the Enforcement of Korean and European Competition Law

Posted by D. Daniel Sokol

Simon Baier, Gugerbauer & Partner Rechtsanwalte has written on The Korea-EU FTA: Implications for the Enforcement of Korean and European Competition Law.

ABSTRACT: On 1 July 2011 the Free Trade Agreement between the European Union and the Republic of Korea will become effective. The pact dedicates Chapter 11 to competition and requires the contract parties to undertake to apply their respective competition laws so as to prevent the benefits of the trade liberalization process in goods, services and establishment from being removed or eliminated by anti-competitive business conduct or anti-competitive transaction, and to remedy or remove distortions of competition caused by subsidies. This article is an investigation on the impact of the Korea-EU FTA for Korean and European competition law enforcement. It shows that the FTA contains enforcement rules that go beyond the “Competition Agreement” between Korea and the European Community of 2009. Accordingly, Chapter 11 FTA broadens the scope of matters which now are subject to “prompt discussion” in consultation procedures between Korea and the EU at the request of either party. Furthermore, as far as the competition matter concerns subsidies, the full range of dispute settlement mechanisms under the WTO Agreements remains available. This article also argues that rights under Chapter 11 FTA can be enforced by individually concerned European companies (i.e. private enforcement) under the European “Trade Barrier Regulation”. It has been established by prior proceedings under the Trade Barrier Regulation that subsidies can amount to an obstacle to trade with adverse effect on a European company operation in Korea, and the Trade Barrier Regulation has already been an effective tool for companies to initiate an investigation by the European Commission against alleged unlawful subsidization of Korean companies under the WTO Agreements. It will therefore serve as such a tool when facing stricter rules on subsidies of Chapter 11 FTA. As far as other anticompetitive actions are concerned, the Trade Barrier Regulation will also be available in principle, but its final measures will be limited to cooperation and consultation procedures outlined in Chapter 11 FTA.

September 5, 2011 | Permalink | Comments (1) | TrackBack (0)

Sunday, September 4, 2011

The 13th Annual Sedona Conference on Antiturst Law & Litigation: International Enforcement and Its Political Underpinnings October 20 – 21, 2011

Posted by D. Daniel Sokol

The 13th Annual Sedona Conference ® on Antiturst Law & Litigation

International Enforcement and Its Political Underpinnings
L’Auberge Del Mar Del Mar, CA
October 20 – 21, 2011

The 13th Annual Sedona Conference on Antitrust Law & Litigation will focus on developments in antitrust/competition law in the US and EU. We will examine how they differ in their approach to protecting competition and why these differences remain, as we discuss current topics:
1. Global Case Law Update
2. Merger Enforcement
3. Abuse of Dominance
4. Vertical Conduct
5. Multinational Enforcement Against Cartels
6. Private Damage Actions in the EU
7. The Future of Global Antitrust Enforcement

During our discussions, we will explore several themes, for example,
• The difference in approach between the US and the EU;
• The distinction between regulating an industry and protecting competition;
• The roles of ‘fairness’ and ‘welfare/efficiency’;
• The relative weights given to facts and theory

The faculty will include an FTC Commissioner; the Head of Unit, Antitrust: IT, Internet and Consumer Electronics from the European Commission Dir. Gen. Competition; a federal district court trial judge; a representative from the California Dept. of Justice; in-house counsel; and leading practitioners and academics from the US and the UK and from both sides of the litigation "v."

In addition to the outstanding faculty, we expect to have a well-balanced group of experienced antitrust experts participating in the conference. And we hope that will include you.

Why attend The Sedona Conference?

For over a decade, the mission of the Sedona Conference has been to allow leading jurists, lawyers, experts, academics and others, at the cutting edge of issues in the area of antitrust law, complex litigation, and intellectual property rights, to come together - in conferences and mini-think tanks (Working Groups) - and engage in true dialogue, not debate, all in an effort to move the law forward in a reasoned and just way.

At The Sedona Conference on Antitrust Law and Litigation, we provide a unique forum for the antitrust community to share ideas regarding current issues. The format is designed to promote dialog among all of the attendees, and all attendees are encouraged to participate in the dialog.

To provide the opportunity for dialog, attendance is limited to 45 participants and 15 faculty members, who participate throughout the conference. The presentations are kept short and are intended to provide the basis of our dialogs; they are not intended to be lectures.

The Sedona Conference is especially suitable for experienced practitioners.

Registration

To ensure the intimate environment needed for meaningful dialog, we limit the number of invitations to participate. We especially look for experienced participants with diverse viewpoints to contribute to the dialogue, leading us to valuable insights and collective wisdom.

If you would like to be invited, please go to the program page of our website - www.thesedonaconference.org/conferences/20111020 - click on the "TO REGISTER" navigation bar on the left side of the page, complete the form, write APPLICATION at the top, and fax it to the number indicated on the form. We will advise you as soon as possible if your application is accepted.

L’Auberge Del Mar

L’Auberge Del Mar, in Del Mar, California, has been ranked as one of the top resorts in the world by Conde Nast, offering a private footpath to the beach, a pool overlooking the Pacific and more. Located near Del Mar Village, the resort is approximately 30 minutes by cab north of the San Diego International Airport.

For more information about the resort, please see their website: http://www.laubergedelmar.com/

September 4, 2011 | Permalink | Comments (0) | TrackBack (0)