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Spicy Documents Serve up a Paltry Antitrust Meal
There is always a temptation for antitrust agencies and plaintiffs to center a case around so-called “hot” documents — typically company documents with a snippet or sound-bites extracted, some times out of context. Some practitioners argue that “[h]ot document can be crucial to the outcome of any antitrust matter.” Although “hot” documents can help catch ... Spicy Documents Serve up a Paltry Antitrust Meal
Time for the FTC to Reform its Advertising Substantiation Program
In my just published Heritage Foundation Legal Memorandum, I argue that the U.S. Federal Trade Commission (FTC) should substantially scale back its overly aggressive “advertising substantiation” program, which disincentivizes firms from providing the public with valuable information about the products they sell. As I explain: “The . . . [FTC] has a long history of ... Time for the FTC to Reform its Advertising Substantiation Program
Abuse of Dominance by Patentees: A Pro-Innovation Perspective
In my just-published article in The Antitrust Source, I argue that the law and economics literature on patents and error cost analysis demonstrate that the recent focus by U.S. (and foreign) antitrust enforcers on single-firm patent abuses is misplaced, and may reduce incentives to innovate. I recommend that antitrust enforcers focus instead on restrictions among ... Abuse of Dominance by Patentees: A Pro-Innovation Perspective
The car dealers’ sneak attack in Michigan
As we have reported frequently on this blog (see, e.g., here, here, here, here, here and here) the car dealers have been making remarkably silly arguments in their fight to prevent Tesla from distributing its electrical vehicles directly to consumers. Now, I’m embarrassed to report that they’ve succeeded in moving from silly to disingenuous in my home ... The car dealers’ sneak attack in Michigan
October 7 Heritage Foundation Event Highlights Economic Liberties Protected by the Constitution
I highly recommend that free market aficionados attend or listen to the Heritage Foundation’s October 7 program on economic liberties and the Constitution. This event, hosted by my colleague Paul Larkin, will feature presentations by constitutional litigator Clark Neily of the Institute for Justice and two brilliant market-oriented Constitutional scholars – Professors Randy Barnett and ... October 7 Heritage Foundation Event Highlights Economic Liberties Protected by the Constitution
Enterprise Cities, Competition, and Economic Growth
Shanker Singham of the Babson Global Institute (formerly a leading international trade lawyer and author of the most comprehensive one-volume work on the interplay between competition and international trade policy) has published a short article introducing the concept of “enterprise cities.” This article, which outlines an incentives-based, market-oriented approach to spurring economic development, is well ... Enterprise Cities, Competition, and Economic Growth
Tesla Wins Big in Massachusetts
On September 15, Tesla won a big victory in Massachusetts. As we have previously chronicled at length on TOTM ( see, e.g., here, here, here, here, here and here), the car dealers are waging a state-by-state ground war to prevent Tesla from bypassing them and distributing directly to consumers. The dealers invoke 1950s-era franchise protection laws that ... Tesla Wins Big in Massachusetts
Why a Common Law Approach to Defining “Unfair Methods of Competition” Won’t Work
Section 5 of the Federal Trade Commission Act proclaims that “[u]nfair methods of competition . . . are hereby declared unlawful.” The FTC has exclusive authority to enforce that provision and uses it to prosecute Sherman Act violations. The Commission also uses the provision to prosecute conduct that doesn’t violate the Sherman Act but is, ... Why a Common Law Approach to Defining “Unfair Methods of Competition” Won’t Work
Peter Thiel on the Virtues of Monopoly
PayPal co-founder Peter Thiel has a terrific essay in the Review section of today’s Wall Street Journal. The essay, Competition Is for Losers, is adapted from Mr. Thiel’s soon-to-be-released book, Zero to One: Notes on Startups, or How to Build the Future. Based on the title of the book, I assume it is primarily a how-to guide for entrepreneurs. ... Peter Thiel on the Virtues of Monopoly
Reforming FTC Data Security Enforcement
Recently I highlighted problems with the FTC’s enforcement actions targeting companies’ data security protection policies, and recommended that the FTC adopt a cost-benefit approach to regulation in this area. Yesterday the Heritage Foundation released a more detailed paper by me on this topic, replete with recommendations for new FTC guidance and specific reforms aimed at ... Reforming FTC Data Security Enforcement
Antitrust Enforcement in Reverse: Getting Efficiencies Backwards
A century ago Congress enacted the Clayton Act, which prohibits acquisitions that may substantially lessen competition. For years, the antitrust enforcement Agencies looked at only one part of the ledger – the potential for price increases. Agencies didn’t take into account the potential efficiencies in cost savings, better products, services, and innovation. One of the major ... Antitrust Enforcement in Reverse: Getting Efficiencies Backwards
Watching local and a la carte is a recipe for STAVRAtion
The free market position on telecom reform has become rather confused of late. Erstwhile conservative Senator Thune is now cosponsoring a version of Senator Rockefeller’s previously proposed video reform bill, bundled into satellite legislation (the Satellite Television Access and Viewer Rights Act or “STAVRA”) that would also include a provision dubbed “Local Choice.” Some free marketeers have defended ... Watching local and a la carte is a recipe for STAVRAtion
