Antitrust & Competition Policy Blog

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

Friday, April 3, 2020

Rethinking Major League Baseball’s Antitrust Exemption

Roger D. Blair, University of Florida - Warrington College of Business Administration - Department of Economics and Wenche Wang, University of Michigan at Ann Arbor are Rethinking Major League Baseball’s Antitrust Exemption.

ABSTRACT: For nearly a century, Major League Baseball (MLB) has enjoyed antitrust immunity. No other sports league or organization is similarly exempt. Shielded by precedent from antitrust prosecution, MLB clubs are free to exploit both monopolistic and monopsonistic power. In this paper, we call for a repeal of MLB’s antitrust exemption. In doing so, we examine some recent antitrust challenges to MLB conduct, the current interest of the Department of Justice and the Federal Trade Commission in labor market issues, the welfare consequences of the exemption, and a policy recommendation for legislative action.

https://lawprofessors.typepad.com/antitrustprof_blog/2020/04/rethinking-major-league-baseballs-antitrust-exemption.html

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