Showing archive for: “Hart–Scott–Rodino”
New Paper Reveals “Stealth” Consolidation But Competitive Effects Remain Hidden
Thomas Wollmann has a new paper — “Stealth Consolidation: Evidence from an Amendment to the Hart-Scott-Rodino Act” — in American Economic Review: Insights this month. Greg Ip included this research in an article for the WSJ in which he claims that “competition has declined and corporate concentration risen through acquisitions often too small to draw ... New Paper Reveals “Stealth” Consolidation But Competitive Effects Remain Hidden
Whole Foods? Seriously? Why Are We Talking About Whole Foods?
So why this deal, in this symposium, and why now? The best substantive reason I could think of is admittedly one that I personally find important. As I said, I think we should take it much more seriously as a general matter, especially in highly dynamic contexts like Silicon Valley. There has been a history of arguably pre-emptive, market-occupying vertical and conglomerate acquisitions, by big firms of smaller ones that are technologically or otherwise disruptive. The idea is that the big firms sit back and wait as some new market develops in some adjacent sector. When that new market ripens to the point of real promise, the big firm buys some significant incumbent player. The aim is not. just to facilitate its own benevolent, wholesome entry, but to set up hopefully prohibitive challenges to other de novo entrants. Love it or leave it, that theory plausibly characterizes lots and lots of acquisitions in recent decades that secured easy antitrust approval, precisely because they weren’t obviously, presently horizontal. Many people think that is true of some of Amazon’s many acquisitions, like its notoriously aggressive, near-hostile takeover of Diapers.com.
Epstein on the Apple e-books case: The hidden traps in the Apple ebook case
On balance the Second Circuit was right to apply the antitrust laws to Apple. Right now the Supreme Court has before it a petition for Certiorari, brought by Apple, Inc., which asks the Court to reverse the decision of the Second Circuit. That decision found per se illegality under the Sherman Act, for Apple’s efforts ... Epstein on the Apple e-books case: The hidden traps in the Apple ebook case
The essence of Josh Wright’s FTC tenure was to ensure that benefits outweigh costs; the rest is commentary
As the organizer of this retrospective on Josh Wright’s tenure as FTC Commissioner, I have the (self-conferred) honor of closing out the symposium. When Josh was confirmed I wrote that: The FTC will benefit enormously from Josh’s expertise and his error cost approach to antitrust and consumer protection law will be a tremendous asset to ... The essence of Josh Wright’s FTC tenure was to ensure that benefits outweigh costs; the rest is commentary
For Better Health Care Systems, States Should Take a Dose of Competition and Reject Antitrust Exemptions
Government impediments to the efficient provision of health care services in the United States are legion. While much recent attention has focused on the federal Patient Protection and Affordable Care Act, which by design reduces consumer choice and competition, harmful state law restrictions have long been spotlighted by the U.S. Federal Trade Commission (FTC) and ... For Better Health Care Systems, States Should Take a Dose of Competition and Reject Antitrust Exemptions
Commissioner Wright goes down swinging over amendments to the FTC’s HSR rules
Last week, over Commissioner Wright’s dissent, the FTC approved amendments to its HSR rules (final text here) that, as Josh summarizes in his dissent, establish, among other things, a procedure for the automatic withdrawal of an HSR filing upon the submission of a filing to the U.S. Securities and Exchange Commission announcing that the notified transaction has been terminated. I discussed the proposed amendments ... Commissioner Wright goes down swinging over amendments to the FTC’s HSR rules
Josh Wright begins making his mark at the FTC by pushing cost-benefit analysis
Although it probably flew under almost everyone’s radar, last week Josh issued his first Concurring Statement as an FTC Commissioner. The statement came in response to a seemingly arcane Notice of Proposed Rulemaking relating to Hart-Scott-Rodino Premerger Notification Rules: The proposed rules also establish a procedure for the automatic withdrawal of an HSR filing when ... Josh Wright begins making his mark at the FTC by pushing cost-benefit analysis
On the Whole Foods Settlement
Thom kicked off discussion of the FTC and Whole Foods’ settlement on a critical note: It’s pretty impressive that the Commissioners were willing to stand their ground in the face of evidence that Whole Foods wasn’t earning monopoly profits, that numerous grocery retailers are moving toward the Whole Foods format, that there are obvious economies ... On the Whole Foods Settlement
Some Links
Economist Philip Cook on alcohol control policy at the Volokh Conspiracy Alex Tabarrok on President-Elect Obama’s visit to George Mason Cass Sunstein to head OIRA (is this evidence that I was wrong that the Obama regulatory regime will be built upon an intellectual platform of behavioral law and economics?) Manfred Gabriel explains Hart-Scott-Rodino Tom Smith ... Some Links
Economic Issues in the Ovation Complaint
On December 16, 2008, the FTC filed a complaint against Ovation Pharmaceuticals that challenged its 2006 acquisition of the drug Neoprofen from Abbott. (The acquisition had fallen beneath the HSR thresholds and thus was not subject to an HSR investigation prior to consummation). While the complaint and case itself raises some interesting issues which I ... Economic Issues in the Ovation Complaint
DOJ Files Another Section 2 Case
Press release here. Here’s an excerpt: The complaint alleges that post-acquisition Microsemi raised prices significantly on small signal transistors certified by the Defense Supply Center Columbus (DSCC), a component of the DOD, at the Joint Army-Navy Technical Exchange-Visual Inspection (JANTXV) and Joint Army-Navy Space (JANS) levels of reliability on its qualified manufacturers list or QML. ... DOJ Files Another Section 2 Case
No Ovation for FTC's Latest Enforcement Theory
The Federal Trade Commission announced a puzzling complaint filed in a new consummated merger & monopolization case in the U.S. District Court for the District of Minnesota. Here’s the explanation of the case from the press release: The Federal Trade Commission today filed a complaint in federal district court challenging Ovation Pharmaceuticals, Inc.’s January 2006 ... No Ovation for FTC's Latest Enforcement Theory
