Net Neutrality and the Paradox of Private Censorship
Truth on the Market
by Ben Sperry
7m ago
With yet another net-neutrality order set to take effect (the link is to the draft version circulated before today’s Federal Communications Commission vote; the final version is expected to be published in a few weeks) and to impose common-carriage requirements on broadband internet-access service (BIAS) providers, it is worth considering how the question of whether online platforms (whether they be social media or internet service providers) have the right to editorial discretion keeps shifting. The official position of the FCC (and the Biden administration, more broadly) is that the more an ..read more
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Once More Unto the Breach, Dear Friends: More Regulatory Overreach by the FTC
Truth on the Market
by Daniel J. Gilman
7m ago
Go big or go home, they say. It’s not really an either-or choice: one can go big, and then go home. Not infrequently, an attempt to go big is what gets one sent home.  The Federal Trade Commission (FTC) swung for the fences in April 23’s open meeting. On purely partisan lines, the commission voted 3-2 to adopt a competition regulation that bans the use of noncompete agreements (NCAs) across much of the U.S. economy. With a few small wrinkles, it’s just what the FTC had proposed to do—also by a purely partisan vote—in its January 2023 notice of proposed rulemaking (NPRM). The proposed rule ..read more
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Steeling to Block a Merger
Truth on the Market
by Alden Abbott
2d ago
In an April 17 address to United Steelworkers in Pittsburgh, President Joe Biden vowed that his administration would “thwart the acquisition of U.S. Steel by a Japanese company,” Nippon Steel, telling the assembled union members that U.S. Steel “has been an iconic American company for more than a century and it should remain totally American.” Aside from the impropriety of apparently prejudging a proposed combination currently under investigation by the U.S. Justice Department (DOJ), would blocking this merger make any sense on national security or economic grounds? The answer is no. National ..read more
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Antitrust at the Agencies Roundup: Spring Has Sprung
Truth on the Market
by Daniel J. Gilman
6d ago
Last week was the occasion of the “spring meeting”; that is, the big annual antitrust convention in Washington, D.C. hosted by the American Bar Association (ABA) Antitrust Section. To engage in a bit of self-plagiarism (efficient for me, at least), I had this to say about it last year: For those outside the antitrust world, the spring meeting is the annual antitrust version of Woodstock. For those inside the antitrust world: Antitrust Woodstock is not really a thing. At the planetary-orbit level, the two events are similar in that they comprise times that are alternately engaging, interesting ..read more
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DOJ’s Case Against Apple: Beware of Forcing ‘Efficiencies’
Truth on the Market
by Mario Zúñiga
6d ago
The U.S. Justice Department’s (DOJ) recent complaint charging Apple with monopolizing smartphone markets is, according to Assistant U.S. Attorney General Jonathan Kanter, intended as a contribution to the agency’s “enduring legacy of taking on the biggest and toughest monopolies in history.”  Unfortunately, the case has fundamental weaknesses in its assessment of both Apple’s alleged monopoly power and the “exclusionary” nature of its business strategies. These infirmities have been discussed at-length by, among others, Alden Abbott, Herbert Hovenkamp, and Randall Picker.  What appea ..read more
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Clearing the Telecom Logjam: A Modest Proposal
Truth on the Market
by Eric Fruits
1w ago
In this “Age of the Administrative State,” federal agencies have incredible latitude to impose policies without much direction or input from Congress. President Barack Obama fully pulled off the mask in 2014, when he announced “[w]e are not just going to be waiting for legislation,” declaring “I’ve got a pen, and I’ve got a phone.” Subsequent presidents have similarly discovered that they had pens and phones, too.  But that’s not how things are supposed to work. Sometimes—some would say most times—Congress needs to step in as voters’ elected representatives and legislate the country’s pri ..read more
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Confronting the DMA’s Shaky Suppositions
Truth on the Market
by Kay Jebelli
1w ago
It’s easy for politicians to make unrealistic promises. Indeed, without a healthy skepticism on the part of the public, they can grow like weeds. In the world of digital policy, the European Union’s Digital Markets Act (DMA) has proven fertile ground for just such promises. We’ve been told that large digital platforms are the source of many economic and social ills, and that handing more discretionary power to the government can solve these problems with no apparent side effects or costs.  These promises were based on “questionable, conclusory, and unsubstantiated” assumptions about how d ..read more
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The Missing Element in the Google Case
Truth on the Market
by Gregory J. Werden
1w ago
Through laudable competition on the merits, Google achieved a usage share of nearly 90% in “general search services.” About a decade later, the government alleged that Google had maintained its dominant share through exclusionary practices violating Section 2 of the Sherman Antitrust Act. The case was tried in U.S. District Court in Washington, D.C. last fall, and the parties made post-trial filings this year. The case focuses on Google’s partnerships with browser developers—especially Apple—and major players in the Android world. These partnerships do not block rival search engines, but they ..read more
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Kroger/Albertsons: Is Labor Bargaining Power an Antitrust Harm?
Truth on the Market
by Brian Albrecht
1w ago
The Federal Trade Commission’s (FTC) recent complaint challenging the proposed merger of the supermarkets Kroger Co. and Albertsons Companies Inc. has important implications for antitrust enforcement in labor markets. Central to the FTC’s case is how it chooses to define the relevant markets, and particularly the commission’s focus on unionized grocery workers. The complaint alleges that the combined firm would dominate these markets, substantially lessening competition for unionized labor.  By emphasizing the merger’s potential to enhance Kroger’s bargaining leverage in union negotiation ..read more
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India Should Question Europe’s Digital-Regulation Strategy
Truth on the Market
by Lazar Radic
1w ago
A year after it was created by the Government of India’s Ministry of Corporate Affairs to examine the need for a separate law on competition in digital markets, India’s Committee on Digital Competition Law (CDCL) in February both published its report recommending adoption of such rules and submitted the draft Digital Competition Act (DCA), which is virtually identical to the European Union’s Digital Markets Act (DMA).  The EU has touted its new regulation as essential to ensure “fairness and contestability” in digital markets. And since it entered into force early last month, the DMA has ..read more
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