The Archives

Everything written by David Balto on law, economics, and more

Balto on the Apple e-books case: Skip the (Apple) appetizer and get to the (McWane) main course

The “magic” of Washington can only go so far. Whether it is political consultants trying to create controversy where there is basic consensus, such as in parts of the political campaign, or the earnest effort to create a controversy over the Apple decision, there may be lots of words exchanged and animated discussion by political ... Balto on the Apple e-books case: Skip the (Apple) appetizer and get to the (McWane) main course

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

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

Swimming Against the Tide: The FTC’s Misguided Antagonism to Health Care Integration

There is a consensus in America that we need to control health care costs and improve the delivery of health care. After a long debate on health care reform and careful scrutiny of health care markets, there seems to be agreement that the unintegrated, “siloed approach” to health care is inefficient, costly, and contrary to ... Swimming Against the Tide: The FTC’s Misguided Antagonism to Health Care Integration

McWane: Structure Isn’t Enough

A particularly unsettling aspect of the FTC’s case against McWane is the complaint counsel’s heavy (and seemingly exclusive) reliance on structural factors to prove its case. The FTC has little or no direct evidence of price communications and no econometric evidence suggesting collusion, and has instead spent a good deal of time trying to show ... McWane: Structure Isn’t Enough

McWane: Why Have An Administrative Law Judge?

Two modest offices on the first floor of the FTC building are occupied by the FTC Administrative Law Judge and his staff.  Of all of the agencies with an ALJ, the FTC’s operation must be the smallest.  The ALJ handles only a handful of trials each year.  In the past, the FTC ALJ operation has ... McWane: Why Have An Administrative Law Judge?

FTC at a crossroads: The McWane case

Anyone familiar with the antitrust newstream realizes there is a tremendous amount of controversy about the Federal Trade Commission’s administrative litigation process. Unlike the Antitrust Division which fights its litigation battles in Federal Court, the FTC has a distinct home court advantage. FTC antitrust cases are typically litigated administratively with a trial conducted before an ... FTC at a crossroads: The McWane case

David Balto on Some Quick Observations on the Drive for UMC Policy Guidelines

I appreciate the opportunity to provide comments on the current Section 5 discussion and add a few modest thoughts about the very thoughtful speeches of Commissioners Wright and Ohlhausen. I must admit, that as a former FTC Policy dude my mouth salivates at the thought of any new Guidelines. After all what could be more ... David Balto on Some Quick Observations on the Drive for UMC Policy Guidelines

David Balto on Economic Evidence and Section 5

One must applaud the efforts of Commissioners Ohlhausen and Wright to begin the dialogue about the proper use of Section 5 as a tool of antitrust enforcement. It was 99 years ago that Congress was debating the creation of the Federal Trade Commission and increased guidance on the Commission’s thinking on Section 5 is in ... David Balto on Economic Evidence and Section 5