Lucid, highly readable, and full of rich social and political implications, “The Antitrust Paradox” illustrates how the purpose and integrity of law can be subverted. Winter Robert Bork, The Antitrust Paradox: A Policy at. War with Itself. Paul H. Brietzke. This Book Review is brought to you for free and open access by the. Jan 3, In his highly influential work, The Antitrust Paradox, Robert Bork asserted that the sole normative objective of antitrust should be to maximize.
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To be sure, this dynamic is not intrinsically anticompetitive. Essays on Multi-Sided Business Subscribing to this view, courts antitfust mergers that they determined would lead to anticompetitive market structures.
Amazon’s Antitrust Paradox
Ironically, the logic that is motivating investors—the idea that it is worth encouraging platfor…. Through the s, antigrust and enforcers applied antitrust laws to promote this variety of aims. The graph below captures the general trend. Borksupra note 32, at That saidthe DOJ did consider how rising consolidation in paraxox media sector—specifically in the context of a proposed merger between two newspapers—would risk undermining the spread of ideas.
The paradoz raised a host of red flags, such as the elimination of a major player in a competitive category, according to an FTC official familiar with the review. One line of argument holds that the concentration of private control—and the power it hands to a…. Strikingly, the market is reflecting a reality that our current laws are unable to detect.
StuckeBetter Competition Advocacy82 St. Times July 4,http…. The result is that technology platform markets will yield to dominance by a small number of firms. All articles with unsourced statements Articles with unsourced statements from September Investment in online platforms lies not in physical infrastructure that might be repurposed, but in intangibles like brand recognition.
It betrays legislative history, which reveals that Congress passed antitrust laws to promote a host of political economic ends—including our interests as workers, producers, entrepreneurs, and citizens.
I am not using it in this way. This intra-product market form of recoupment is what courts look for.
The Antitrust Paradox – Wikipedia
And second, what forms and degrees of power should the law identify as a threat to competition? Even if we accept consumer welfare as the touchstone of antitrust, ensuring a competitive process—by looking, in part, to how a market is structured—ought to be vork.
These cases highlight how Amazon can use its role as an infrastructure provider to benefit its other lines of business.
Because the government deflected predatory pricing claims by looking at aggregate profitability, neither the government nor the court reached the question of recoupment. Amazon Tops the ListForbes Mar.
Views Read Edit View history. Critically, not only has Amazon integrated across select lines of business, but it has also emerged as central infrastructure for the internet economy. But see United States v. Animating these critiques is not a concern about harms to consumer welfare, but the broader set of ills and hazards that a lack of competition breeds.
See Hovenkampsupra note 57, at The decision was controversial. In practice, adopting this approach would involve assessing a range of factors that give insight into the neutrality of the competitive process and the openness of the market. A growing body of work shows that the consumer welfare frame has failed even on its own terms—namely, by leading to higher prices without any clear efficiency gains. The degree to which a firm can tailor and personalize an online shopping experience is different in kind from the methods available to a brick-and-mortar store—precisely because the type of behavior that online firms can track is far more detailed and nuanced.
Courts also tend pradox discount that predators can use psychological intimidation to keep out the competition. Because Amazon was able to demand heavy discounts from FedEx and UPS, other sellers faced price hikes from these companies—which positioned Amazon to capture them as clients for its new business.
The product and its distribution are complements, and an increase in the price of distribution will reduce the demand for the parzdox. Net neutrality is a form of common carrier regime. This level paraddox concentrated control creates hazards analogous to those recognized in banking law. By imposing conduct remedies, the antitrust agencies set out behavioral conditions that the mergin…. One might dismiss this phenomenon as irrational investor exuberance. Stonesupra noteat Antitrust Probe of GoogleWall St.
However, the economics of online retailing are not quite like traditional shoe retailing.
As several commentators have observed, the practical barriers to successful and sustained entry as an online platform are very high, given the huge antitruts advantages stemming from data collection and network effects. To date, the Obama Administration has filed only one case, hardly evidencing a major shift in tactics. The Antitrust Paradox is a book by Robert Bork that criticized the state of United States antitrust law in the s.
Times June 20,http: When the Supreme Court adopted the view parxdox Congress enacted the Sherman Act as a “consumer welfare prescription,” it did not define the meaning of the term, which has remained ambiguous. Bork Snippet view – Vertical Integration Analysis of vertical integration has similarly moved away from structural concerns. GrunesBig Data and Competition Policy Tech Trader Daily June 16, See supra Section IV. My library Help Advanced Book Search.
But recoupment across markets is also available as a strategy, especially for firms as diversified across products and services as Amazon.