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A big year for business and economics in the courts, even if we’re not talking about Janus

This has been a big year for business in the courts. A U.S. district court approved the AT&T-Time Warner merger, the Supreme Court upheld Amex’s agreements with merchants, and a circuit court pushed back on the Federal Trade Commission’s vague and heavy handed policing of companies’ consumer data safeguards. These three decisions mark a new ... A big year for business and economics in the courts, even if we’re not talking about Janus

Dear Antitrusters: Bias Is Ubiquitous. Stick to the Merits.

A recent tweet by Lina Khan, discussing yesterday’s American Express decision, exemplifies an unfortunate trend in contemporary antitrust discourse.  Khan wrote: The economists cited by the Second Circuit (whose opinion SCOTUS affirms) for the analysis of ‘two-sided’ [markets] all had financial links to the credit card sector, as we point out in FN 4 [link ... Dear Antitrusters: Bias Is Ubiquitous. Stick to the Merits.

Weekend reads: Big is bad edition

Big is bad, part 1: Kafka, Coase, and Brandeis walk into a bar … There’s a quip in a well-known textbook that Nobel laureate Ronald Coase said he’d grown weary of antitrust because when prices went up, the judges said it was monopoly; when the prices went down, they said it was predatory pricing; and ... Weekend reads: Big is bad edition

Will the European Commission Reduce the Incentive to Innovate?

The EC’s Android decision is expected sometime in the next couple of weeks. Current speculation is that the EC may issue a fine exceeding last year’s huge 2.4B EU fine for Google’s alleged antitrust violations related to the display of general search results. Based on the statement of objections (“SO”), I expect the Android decision ... Will the European Commission Reduce the Incentive to Innovate?

For LabMD, the Devil Is in the Not-So-Well Specified Details

The Eleventh Circuit’s LabMD opinion came out last week and has been something of a rorschach test for those of us who study consumer protection law. Neil Chilson found the result to be a disturbing sign of slippage in Congress’s command that the FTC refrain from basing enforcement on “public policy.” Berin Szóka, on the ... For LabMD, the Devil Is in the Not-So-Well Specified Details

AT&T-Time Warner merger approved

AT&T’s merger with Time Warner has lead to one of the most important, but least interesting, antitrust trials in recent history. The merger itself is somewhat unimportant to consumers. It’s about a close to a “pure” vertical merger as we can get in today’s world and would not lead to a measurable increase in prices ... AT&T-Time Warner merger approved

More on a possible Comcast/Fox deal: Reports of the death of vertical mergers have been greatly exaggerated

A few weeks ago I posted a preliminary assessment of the relative antitrust risk of a Comcast vs Disney purchase of 21st Century Fox assets. (Also available in pdf as an ICLE Issue brief, here). On the eve of Judge Leon’s decision in the AT&T/Time Warner merger case, it seems worthwhile to supplement that assessment by ... More on a possible Comcast/Fox deal: Reports of the death of vertical mergers have been greatly exaggerated

Canadian Site Blocking Proposal Is a Good Experiment in Controlling Piracy

In an ideal world, it would not be necessary to block websites in order to combat piracy. But we do not live in an ideal world. We live in a world in which enormous amounts of content—from books and software to movies and music—is being distributed illegally. As a result, content creators and owners are ... Canadian Site Blocking Proposal Is a Good Experiment in Controlling Piracy

Problems with Proposed Solutions to the Common Ownership Problem

Even if institutional investors’ common ownership of small stakes in competing firms did cause some softening of market competition—a claim that is both suspect as a theoretical matter and empirically shaky—the policy solutions common ownership critics have proposed would do more harm than good. Einer Elhauge has called for public and private lawsuits against institutional ... Problems with Proposed Solutions to the Common Ownership Problem

Weekend Reads

Innovation dies in darkness. Well, actually, it thrives in the light, according to this new research: We find that after a patent library opens, local patenting increases by 17% relative to control regions that have Federal Depository Libraries. … [T]]he library boost ceases to be present after the introduction of the Internet. We find that ... Weekend Reads

Chevron and the Politicization of Law (or, Chevron Step Three)

A recent exchange between Chris Walker and Philip Hamburger about Walker’s ongoing empirical work on the Chevron doctrine (the idea that judges must defer to reasonable agency interpretations of ambiguous statutes) gives me a long-sought opportunity to discuss what I view as the greatest practical problem with the Chevron doctrine: it increases both politicization and polarization of ... Chevron and the Politicization of Law (or, Chevron Step Three)

Problems with the Evidence of Anticompetitive Harm from Common Ownership

Mike Sykuta and I have been blogging about our new paper responding to scholars who contend that institutional investors’ common ownership of small stakes in competing firms significantly reduces market competition and should be restricted.  (FTC Commissioner Noah Phillips cited the paper yesterday in his excellent prepared remarks on common ownership.)  Mike first described the ... Problems with the Evidence of Anticompetitive Harm from Common Ownership