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How does antitrust measure nonprice effects like political bias?

In the latest congressional hearing, purportedly analyzing Google’s “stacking the deck” in the online advertising marketplace, much of the opening statement and questioning by Senator Mike Lee and later questioning by Senator Josh Hawley focused on an episode of alleged anti-conservative bias by Google in threatening to demonetize The Federalist, a conservative publisher, unless they ... How does antitrust measure nonprice effects like political bias?

The Antitrust Case Against Google’s Adtech Business, Explained

This week the Senate will hold a hearing into potential anticompetitive conduct by Google in its display advertising business—the “stack” of products that it offers to advertisers seeking to place display ads on third-party websites. It is also widely reported that the Department of Justice is preparing a lawsuit against Google that will likely include ... The Antitrust Case Against Google’s Adtech Business, Explained

Islands of Chaos: The Economic Calculation Problem Inherent in Municipal Broadband

Municipal broadband has been heavily promoted by its advocates as a potential source of competition against Internet service providers (“ISPs”) with market power. Jonathan Sallet argued in Broadband for America’s Future: A Vision for the 2020s, for instance, that municipal broadband has a huge role to play in boosting broadband competition, with attendant lower prices, ... Islands of Chaos: The Economic Calculation Problem Inherent in Municipal Broadband

The Capitalist’s Lived Experience

Speaking about his new book in a ProMarket interview, David Dayen inadvertently captures what is perhaps the essential disconnect between antitrust reformers (populists, neo-Brandeisians, hipsters, whatever you may call them) and those of us who are more comfortable with the antitrust status quo (whatever you may call us). He says: “The antitrust doctrine that we’ve ... The Capitalist’s Lived Experience

The Epic Flaws of Epic’s Antitrust Gambit

Much has already been said about the twin antitrust suits filed by Epic Games against Apple and Google. For those who are not familiar with the cases, the game developer – most famous for its hit title Fortnite and the “Unreal Engine” that underpins much of the game (and movie) industry – is complaining that ... The Epic Flaws of Epic’s Antitrust Gambit

Will Montesquieu Rescue Antitrust?

In an age of antitrust populism on both ends of the political spectrum, federal and state regulators face considerable pressure to deploy the antitrust laws against firms that have dominant market shares. Yet federal case law makes clear that merely winning the race for a market is an insufficient basis for antitrust liability. Rather, any ... Will Montesquieu Rescue Antitrust?

The Deterioration of Appropriate Remedies in Patent Disputes

Property rights are a pillar of the free market. As Harold Demsetz famously argued, they spur specialization, investment and competition throughout the economy. And the same holds true for intellectual property rights (IPRs).  However, despite the many social benefits that have been attributed to intellectual property protection, the past decades have witnessed the birth and ... The Deterioration of Appropriate Remedies in Patent Disputes

Doublespeak in the Debate About Rural Broadband Buildout

As Thomas Sowell has noted many times, political debates often involve the use of words which if taken literally mean something very different than the connotations which are conveyed. Examples abound in the debate about broadband buildout.  There is a general consensus on the need to subsidize aspects of broadband buildout to rural areas in ... Doublespeak in the Debate About Rural Broadband Buildout

The Myth of the Cyber Barons

During last week’s antitrust hearing, Representative Jamie Raskin (D-Md.) provided a sound bite that served as a salvo: “In the 19th century we had the robber barons, in the 21st century we get the cyber barons.” But with sound bites, much like bumper stickers, there’s no room for nuance or scrutiny. The news media has ... The Myth of the Cyber Barons

Big Tech and the Parable of the Broken Window

A boy throws a brick through a bakeshop window. He flees and is never identified. The townspeople gather around the broken glass. “Well,” one of them says to the furious baker, “at least this will generate some business for the windowmaker!” A reasonable statement? Not really. Although it is indeed a good day for the ... Big Tech and the Parable of the Broken Window

Institutional weakness and the fight against Covid-19 in Peru

Peru’s response to the pandemic has been one of the most radical in Latin America: Restrictions were imposed sooner, lasted longer and were among the strictest in the region. Peru went into lockdown on March 15 after only 71 cases had been reported.  Along with the usual restrictions (temporary restaurant and school closures), the Peruvian ... Institutional weakness and the fight against Covid-19 in Peru

The Furman Report is a Flimsy Basis for a New UK Competition Policy

Earlier this year the UK government announced it was adopting the main recommendations of the Furman Report into competition in digital markets and setting up a “Digital Markets Taskforce” to oversee those recommendations being put into practice. The Competition and Markets Authority’s digital advertising market study largely came to similar conclusions (indeed, in places it ... The Furman Report is a Flimsy Basis for a New UK Competition Policy