The FT Misunderstands the Economics of Credit-Card Markets
In a recent piece for the Financial Times, Brendan Greeley argues that the misnamed Credit Card Competition Act would reduce inflation. In it, Greeley recycles numerous myths about the nature of credit-card markets that have long been rebutted by serious economic research. Both theory and ample evidence from the United States and other countries shows ... The FT Misunderstands the Economics of Credit-Card Markets
Will the USF Survive the 5th Circuit?
The Telecom Hootenanny is back from a little summer break. As they say on AM radio: “If you miss a little, you miss a lot.” So rather than trying to catch up, let’s focus on some of the latest news from the telecom dancefloor. For this edition of the Hootenanny: we’ve got a big-time challenge ... Will the USF Survive the 5th Circuit?
Antitrust at the Agencies Roundup: Kill All the Widgets Edition
Over the river, into the woods, and down into the weeds we go. There’s a whole lot of drama going on at the Federal Trade Commission (FTC), not least because of recent correspondence between the U.S. House Oversight Committee and FTC Chair Lina Khan that might politely—euphemistically, really—be termed “heated.” But I’m not gonna go ... Antitrust at the Agencies Roundup: Kill All the Widgets Edition
The FTC’s Gambit Against Amazon: Navigating a Multiverse of Blowback and Consumer Harm
The Federal Trade Commission (FTC) is reportedly poised some time within the next month to file a major antitrust lawsuit against Amazon—the biggest yet against the company and the latest in a long string of cases targeting U.S. tech firms (see, for example, here and here). While specific details of the suit remain largely unknown ... The FTC’s Gambit Against Amazon: Navigating a Multiverse of Blowback and Consumer Harm
Antitrust and FCC Oversight Are Needed to Promote Broadband Deployment in the Tennessee Valley
In late June, Sen. Mike Lee (R-Utah) sent a letter to Assistant Attorney General Jonathan Kanter arguing that the U.S. Justice Department (DOJ) needs to investigate the Tennessee Valley Authority (TVA) and its local power companies (LPCs) on grounds that abuses of the pole-attachment process appear to be slowing broadband deployment. Given that Congress has prioritized subsidizing broadband access ... Antitrust and FCC Oversight Are Needed to Promote Broadband Deployment in the Tennessee Valley
Does ‘Open Finance’ Promote Competition or Facilitate Free Riding?
Financial technology, or so-called “fintech,” is disrupting the financial sector, and that’s a good thing. Fintech services are making finance more digital and more user-friendly. This, in turn, has led to reduced transactions costs and increased levels of competition, innovation, and financial inclusion. Alas, the emergence of fintech has also been accompanied by a rising ... Does ‘Open Finance’ Promote Competition or Facilitate Free Riding?
Uber and the Mill of Sanssouci
Freedom of enterprise is considered a second-class freedom in Spain, rather than a fundamental right. It is clear that this has been the view not only of successive Spanish governments since the current Constitution was promulgated in 1978, but also of the judges of the Supreme Court of Spain (Tribunal Supremo) and the Constitutional Court ... Uber and the Mill of Sanssouci
Antitrust at the Agencies Roundup: The Joint FTC/DOJ Guidelines to Nowhere (or Nowhere Good) Edition
The FTC and DOJ have done it: on July 19 they released the long awaited (or dreaded) draft merger guidelines, which . . . well, could have been worse, given current agency leadership, but could have been better (as demonstrated by the certainly imperfect, but still better, 2010 guidelines they replaced). Jumping on the agencies’ ... Antitrust at the Agencies Roundup: The Joint FTC/DOJ Guidelines to Nowhere (or Nowhere Good) Edition
Norwegian Decision Banning Behavioral Advertising on Facebook and Instagram
The Norwegian Data Protection Authority (DPA) on July 14 imposed a temporary three-month ban on “behavioural advertising” on Facebook and Instagram to users based in Norway. The decision relied on the “urgency procedure” under the General Data Protection Regulation (GDPR), which exceptionally allows direct regulatory interventions by other national authorities than the authority of the country ... Norwegian Decision Banning Behavioral Advertising on Facebook and Instagram
New Merger Guidelines Are As Expected. That’s Not a Compliment.
Fifteen months after the close of the comment period, we finally have the release of the draft merger guidelines by the Federal Trade Commission (FTC) and the U.S. Justice Department (DOJ). While there is a lot to digest in the 51 page document with over 100 (largely stale) footnotes, the broad picture is clear: the goal of ... New Merger Guidelines Are As Expected. That’s Not a Compliment.
The New Merger Guideline Commandments: Thirteen is an Unlucky Number
Introduction On July 19, the Department of Justice (DOJ) and Federal Trade Commission (FTC) (the agencies) finally issued new draft Merger Guidelines (DMG), open to public comments for two months. The DMG embody a set of thirteen individual Guidelines, which “are not exhaustive of the ways that a merger may substantially lessen competition or tend ... The New Merger Guideline Commandments: Thirteen is an Unlucky Number
Note to the FTC: Punishing Efficiency Means Destroying Competition
Yesterday, Lina Khan’s FTC released their long-awaited draft merger guidelines for public comment. Regrettably yet not unsurprisingly, the new guidelines are a radical departure from established case law and antitrust thinking. They’re marked by a failure to account for the role of efficiencies in the competitive process, and a failure to distinguish between the implications of generally ... Note to the FTC: Punishing Efficiency Means Destroying Competition
