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The collection of all scholarly commentary on law, economics, and more

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Finding your way in the seeds/agro-chem mergers labyrinth

The recently notified mergers in the seed and agro-chem industry raise difficult questions that competition authorities around the world would need to tackle in the following months. Because of the importance of their markets’ size, the decision reached by US and EU competition authorities would be particularly significant for the merging parties, but the perspective ... Finding your way in the seeds/agro-chem mergers labyrinth

Innovation trends in agriculture and their implications for M&A analysis

The US agriculture sector has been experiencing consolidation at all levels for decades, even as the global ag economy has been growing and becoming more diverse. Much of this consolidation has been driven by technological changes that created economies of scale, both at the farm level and beyond. Likewise, the role of technology has changed ... Innovation trends in agriculture and their implications for M&A analysis

Patents and mergers

How should patents be taken into consideration in merger analysis? When does the combining of patent portfolios lead to anticompetitive concerns? Two principles should guide these inquiries. First, as the Supreme Court held in its 2006 decision Independent Ink, ownership of a patent does not confer market power. This ruling came in the context of ... Patents and mergers

Contestability theory in the real world

Though concentration seems to be an increasingly popular metric for discussing antitrust policy (a backward move in my opinion, given the theoretical work by Harold Demsetz and others many years ago in this area), contestability is still the standard for evaluating antitrust issues from an economic standpoint. Contestability theory, most closely associated with William Baumol, ... Contestability theory in the real world

Understanding innovation markets in antitrust analysis

Today, three of the largest proposed mergers — Bayer/Monsanto, Dow/Dupont, and ChemChina/Syngenta — face scrutiny in both the U.S. and Europe over concerns that the mergers will slow innovation in crop biotechnology and crop protection.   The incorporation of innovation effects in the antitrust analysis of these agricultural/biotech mergers is quickly becoming more mainstream in both the U.S. ... Understanding innovation markets in antitrust analysis

Conglomerate effects and the incentive to deal reasonably with other providers of complementary products

Modern agriculture companies like Monsanto, DuPont, and Syngenta, develop cutting-edge seeds containing genetic traits that make them resistant to insecticides and herbicides. They also  develop crop protection chemicals to use throughout the life of the crop to further safeguard from pests, weeds and grasses, and disease. No single company has a monopoly on all the ... Conglomerate effects and the incentive to deal reasonably with other providers of complementary products

The Apple tax case: Plain vanilla competition policy?

Since Brussels has ordered Ireland to recover 13€ billion from Apple, much ink has been spilled on the European Commission’s (EC) alleged misuse of power and breach of the “rule of law.” In the Irish Times, Professor Liza Lovdahl-Gormsen wrote that the EC has been “bending” competition law to pursue a corporate taxation agenda in disguise. ... The Apple tax case: Plain vanilla competition policy?

Understanding ownership and property in the Digital Age

What does it mean to “own” something? A simple question (with a complicated answer, of course) that, astonishingly, goes unasked in a recent article in the Pennsylvania Law Review entitled, What We Buy When We “Buy Now,” by Aaron Perzanowski and Chris Hoofnagle (hereafter “P&H”). But how can we reasonably answer the question they pose ... Understanding ownership and property in the Digital Age

Bundling and Competition Law in China: Sage Comments by the Scalia Law Schoolโ€™s Global Antitrust Institute

Introduction For nearly two years, the Global Antitrust Institute (GAI) at George Mason University’s Scalia Law School has filed an impressive series of comments on foreign competition laws and regulations.  The latest GAI comment, dated March 19 (“March 19 comment”), focuses on proposed revisions to the Anti-Unfair Competition Law (AUCL) of the People’s Republic of ... Bundling and Competition Law in China: Sage Comments by the Scalia Law Schoolโ€™s Global Antitrust Institute

Significant Impediment To Industry Innovation: A novel theory of harm in EU merger policy?

In Brussels, the talk of the town is that the European Commission (“Commission”) is casting a new eye on the old antitrust conjecture that prophesizes a negative relationship between industry concentration and innovation. This issue arises in the context of the review of several mega-mergers in the pharmaceutical and AgTech (i.e., seed genomics, biochemicals, “precision ... Significant Impediment To Industry Innovation: A novel theory of harm in EU merger policy?

TOTM welcomes guest blogger (and newest ICLE Senior Scholar) Nicolas Petit

TOTM is pleased to welcome guest blogger Nicolas Petit, Professor of Law & Economics at the University of Liege, Belgium. Nicolas has also recently been named a (non-resident) Senior Scholar at ICLE (joining Joshua Wright, Joanna Shepherd, and Julian Morris). Nicolas is also (as of March 2017) a Research Professor at the University of South ... TOTM welcomes guest blogger (and newest ICLE Senior Scholar) Nicolas Petit

Expertsโ€™ Report Proposes Greater Coordination of U.S. Competition Law and Trade Law Policies

On March 14, the U.S. Chamber of Commerce released a report “by an independent group of experts it commissioned to consider U.S. responses to the inappropriate use of antitrust enforcement actions worldwide to achieve industrial policy outcomes.”  (See here and here.)  I served as rapporteur for the report, which represents the views of the experts ... Expertsโ€™ Report Proposes Greater Coordination of U.S. Competition Law and Trade Law Policies