As we’ve discussed before, the FTC recently decided to dust off its Section 5 authority to go after “unfair methods of competition” in lieu of using its tradition antitrust authority (Section 2) to pursue some of its tougher cases. This has many antitrust experts concerned, most notably, Bob Litan, former Clinton administration. Apparently, Senator Orrin Hatch (R-UT) is also concerned by the FTC’s use of Section 2.
Over the past few weeks an online debate has been brewing between antitrust scholars over the FTC case against Intel. The focus of the debate has been the FTC's decision to pursue most of its case using its Section 5 authority to prevent "unfair and deceptive" practices, rather than its Section 2 authority for combating anti-competitive behavior. The discussion began with a piece by Bob Litan, former Deputy Assistant Attorney General in the Antitrust Division of the Justice Department in the Clinton Administration, entitled "The FTC's Radical Application of Section 5." As the title suggests, Litan has some serious concerns about the FTC's case in general and its application of Section 5. It's a pretty compelling piece that I recommend to all you antitrust geeks, but if you're short on time/attention span I'll try to summarize.
Why do we choose the products we choose, when there are so many alternatives? Viewers gravitate to the music, movies and art of professionals so it behooves us to allow those professionals who simply work harder and for longer on their craft to enjoy the fruits of that labor.
“Don’t Believe the Hype” -- Chuck D, Public Enemy De Tocqueville is famous for discussing the American way of enlightened self-interest, in which there are mixed elements of private and public goods involved. But when it comes to self-interested lobbying by the tech industry, it’s the words of an American [...]
I want Microsoft's market share to diminish to significantly less than 95%. I can't say that it has to be precisely 50% or whatever number, but it has to be significantly less than 95. - Neelie Kroes, European Commissioner for Competition Policy Today’s decision from the European Court of First [...]