antitrust Archives — LIRNEasia


One of the most critical steps in an inquiry on anti-competitive practices or a merger/acquisition is the definition of the relevant market. For example, did the relevant market for a newspaper merger include radio and TV stations? In the 1950s, Dupont was ruled to be non-dominant in the relevant market which was defined as wrapping material, not clear, waterproof cellophane. Just based on that the government case collapsed. In the case below, the government lawyers wanted to define the relevant market narrowly to stop a merger.
Much of modern telecom regulation is about preventing the extension of market power for oligopolistic markets to relatively competitive markets. One method used to do this is bundling two products, one from the former and the other from the latter. Conventional antitrust envisaged both the products being sold for a price, or of one being given “free” with the other. In the case of the flurry of competition-law proceedings around Microsoft, one issue was the bundling of the Explorer browser (available for free download) with the Windows operating system. Finally the consumers are being given an explicit choice at the behest of the European Commission, and they are taking it.