Antitrust Law Research Articles

Sports in principles of economics textbooks

PurposeThe purpose of this paper is to inform readers who are interested in textbooks, sports and sports economics, but especially professors who teach sports economics, about the coverage of sports in principles of economics textbooks.Design/methodology/approachThe data in the paper consist of the 130 sections on sports from twenty-one principles of economics textbooks. The paper illuminates the sections using numerous quotations and in-text references. The paper details the number of sections devoted to each sport, economic concepts they illuminate and how the text covers topics such as league rules, broadcast revenues and women in sports.FindingsThe paper finds that the 21 textbook authors devote an average of 934 words in an average of 6.2 sections of text to 11 sports. Sections of text vary from one sentence to lengthy discussions of topics such as increased salaries due to technological advances in broadcasting, antitrust cases, the gender pay gap and bargaining between leagues and players' unions. The authors refer to five published research papers on sports economics, two quantitative books, two quantitative articles in the popular press and one nonquantitative nonfiction book.Research limitations/implicationsThis paper provides data to researchers who study sports regarding topics that students are being taught in economics texts. It is a potential tool for connecting their areas of research to the university experience.Practical implicationsSports economics professors, and other professors, may enhance student interest by a choice of text for their principles classes.Social implicationsSports coverage in principles texts illuminates topics such as the effect of technology on income distribution, the morality of paying college athletes, the interaction of the legal system and markets and the gender gap.Originality/valueNo other publicly referenced paper details the use of sports in principles textbooks.

A EXIGÊNCIA DE POLÍTICAS PÚBLICAS PARA A CONTENÇÃO DA LITIGÂNCIA PREDATÓRIA

This article aims to analyze the phenomenon of predatory litigation, which consists of the abusive use of the Judiciary with the intention of causing financial harm to third parties. Initially, the history of predatory litigation in the United States is presented, with the creation of antitrust laws and jurisprudence on the subject. Next, the metaprocedural effects of predatory litigation are addressed, which go beyond the judicial decision and may have strategic motivations. The article also analyzes the perception of the phenomenon by the Brazilian Judiciary, with the identification of emblematic cases and the adoption of measures to curb this practice. Finally, public policies are proposed to address predatory litigation, with an emphasis on awareness, prevention, institutional strengthening, and the promotion of alternative dispute resolution methods. The goal is to contribute to the construction of a more efficient and fair justice system, capable of curbing the abusive use of the Judiciary.

How antitrust enforcement affects corporate ESG performance? Evidence from merger review cases in China

Chinese unique treatment of unreported merger cases (which should be reported according to antitrust law) in the context of merger review provides a distinctive and robust control group for the Difference-in-Differences (DID) research method. We employ the DID method to investigate the impact of China’s merger review antitrust enforcement on Environment, Social and Governance (ESG) performance. We find that the implementation of merger review antitrust enforcement suppresses corporate ESG performance, especially with significant effects observed on the Environment (E) and Governance (G) components. Mechanism analysis indicates that antitrust enforcement poses an impact on corporate profits by reducing market concentration and safeguarding fair market competition. This leads to the emergence of corporate financial performance protection behaviors, resulting in a decrease in corporate ESG performance. Heterogeneous analysis finds that the use of structural remedy in the enforcement process and stronger antitrust enforcement will further intensify the inhibitory effect of antitrust enforcement against business concentration on ESG.

Dark patterns: Can criminal law remedy the shortcomings of antitrust law?

Antitrust laws' remedies to address Big Tech's anticompetitive business models have often been questionable. Since the fundamental design choices of business models pose significant challenges, due to dark patterns, Austrian criminal law may compensate for antitrust laws' enforcement limits. It is argued that Amazon's Prime and BuyBox, Google's Search and its AI Bard, Activision Blizzard's lootboxes, and Engagement Optimised Matchmaking (EOMM) algorithms contain dark patterns that may constitute (commercial) fraud within the meaning of §§ 146, 148 StGB. This is because these business models are designed to deceive consumers to unlawfully enrich Big Tech and video game publishers.

Agency conflicts, product market competition and investment efficiency: new evidence from emerging market

PurposeThis study examines the influence of product market competition on investment inefficiency of Indian firms in context of agency problems. Additionally, this study also investigates whether intense competition is a substitute for or complementary to corporate governance in reducing investment inefficiency of firms.Design/methodology/approachUtilizing the residuals extracted from Biddle et al. (2009) investment model, investment inefficiency, overinvestment and underinvestment are measured for 506 non-financial Indian listed firms with 6,998 firm-year observations from 2009 to 2022. Product market competition is measured using various proxies such as the Herfindahl–Hirschman index, top-four firm concentration ratio, total number of firms in industry, industry market size, weighted average of entry costs and research and development (R&D) to sales ratio. Firms' internal governance is measured using a newly corporate governance index developed with 65 new governance stipulations. Several pooled ordinary least squares (OLS) panel regressions were estimated involving investment inefficiency of firms, product market competition, governance index and firm-specific variables. Endogeneity issues were addressed through two-stage least squares. Robustness checks were also conducted using a two-step system generalized method of moments (GMM).FindingsThe main finding of the study indicates that heightened product market competition reduces investment inefficiency, overinvestment and underinvestment among the selected Indian firms suggesting that firms facing intense competition are less prone to invest below or above optimal levels. This is primarily because in highly competitive industries, managers face greater liquidation risks, prompting more efficient capital investment decisions. The results also indicate that robust corporate governance significantly mitigates investment inefficiencies in non-competitive industries compared to competitive ones suggesting heightened competition reduces managerial slack, resulting in diminished benefits from good governance in competitive settings. Overall results indicate a substitution effect between corporate governance and competition in reducing investment inefficiency, with robustness across various empirical specifications, industry classifications and alternative competition and inefficiency measures.Practical implicationsThe evidence from this work emphasizes the pivotal roles of market competitiveness and corporate governance in shaping investment efficiency. Regulators must closely monitor monopolistic behaviors to safeguard stakeholder interests, enhance investment efficiency and foster value creation. Recognizing the positive impact of market competition, firms should prioritize initiatives to promote industrial openness and intensify competition while strengthening market mechanisms. Policymakers should consider implementing competition-centric governance policies, such as deregulation and antitrust laws, to stimulate market competition. These measures can mitigate governance-related costs and promote a competitive marketplace.Originality/valueThis study provides fresh evidence concerning the effects of product market competition on investment efficiency of Indian firms under new governance norms, an unexplored area in India as most of the existing work has primarily examined the association between competition and investment levels. To best of our knowledge, this is one of the earliest studies demonstrating the substitution effects of competitiveness and governance systems on lowering investment inefficiency suggesting a significant influence of corporate governance in non-competitive industries. Finally, this study contributes to the field of methodology by developing a new firm-specific governance index based on 65 governance indicators.

Evaluating the effect of horizontal Integration strategy on performance of commercial State corporations in Kenya

This study aimed to evaluate the impact of horizontal integration on performance of Commercial State Corporations in Kenya. The study was based on positivist research philosophy. A cross-sectional correlational design was adopted as the study design. The target population was 1,026 senior managers of the Commercial State Corporations. The sample size was 99 senior managers in Commercial State Corporations. Primary data were gathered using a structured questionnaire. Collected data was analysed using descriptive data analysis techniques (Mean, Standard Deviation, Maximum and Minimum) and regression analysis. The findings of the study were presented using figures and tables. The study established a significant effect of horizontal integration strategy on financial, customers, internal business process and learning, growth and development performance of Commercial State Corporations in Kenya (? =0.536, p=0.000<0.05; ? =0.548, p=0.000<0.05;? =0.359,p=0.000<0.05;? =0.201,p=0.027<0.05). The study concluded that the horizontal integration strategy significantly improved the financial, customer, internal business process, and learning, growth, and development performance of Commercial State Corporations, supported by statistical evidence. The study recommends that Commercial State Corporations should streamline regulations to facilitate horizontal integration, ensure alignment with strategic objectives, prioritise sectors that enhance efficiency and service delivery, collaborate with competition authorities to comply with antitrust laws, and proactively address market concentration and anti-competitive concerns.

The Effects of Market Monopolies on Consumer Welfare and Economic Efficiency

Using both theoretical and empirical analysis, this study offers a thorough examination of how market monopolies affect consumer welfare and economic efficiency. The study sheds light on the ways in which monopolistic enterprises sustain their market dominance by analyzing how monopolies function. These tactics include taking advantage of entry hurdles, exercising control over crucial resources, and implementing strategies such as price discrimination. According to the research, because there is no competition, monopolies not only drive up costs but also limit consumer choice, lower the quality of their products, and stifle innovation. Due to these monopolistic actions, there are inefficiencies in the market, especially when it comes to the distribution of resources, which makes businesses less inventive and productive and ultimately contributes to a general stagnation in the economy. The role of legal frameworks like antitrust laws, which are intended to prevent monopolistic behavior, is also evaluated in this research. It criticizes current laws, pointing out that they frequently fail to keep up with changing market circumstances, especially in sectors like technology and telecommunications. In order to remedy these deficiencies, the paper suggests a number of policy measures, such as stepping up antitrust enforcement, lowering obstacles to new businesses entering the market, and liberalizing the market to create an atmosphere that is more competitive. It also promotes updating regulatory frameworks to deal with digital monopolies and quickly evolving global markets in a way that prioritizes consumer welfare and restores economic efficiency. By taking these steps, the study highlights how crucial it is to reduce monopolistic power in order to foster innovation, long-term economic growth, and consumer safety.

Neither Populist nor Neoclassical: The Classical Roots of the Competition Principle in American Antitrust Law

Contemporary critics of American antitrust law lament a supposed misinterpretation by modern, welfare-driven enforcers of the true meaning of the competition principle. This essay contributes to the debate by reconstructing the principle's historical origin. While it did not feature in the Sherman Act, the competition principle was introduced by the Supreme Court during the early years of antitrust law. The court formulated alternative versions of the principle; the one that eventually prevailed was neither populist nor neoclassical, as it was based on classical political economy and, in particular, on freedom of contract and “natural” values. This historical circumstance may pave the way for a new approach to antitrust law.

A systematic content analysis of innovation in European competition law

Innovation plays a crucial role in defining competitive dynamics. Given this fact, one might expect ‘innovation’ to play a consistent role in antitrust law. The present article conducts a systematic content analysis of the case law of the Court of Justice of the European Union to test this hypothesis. The findings suggest that EU courts treat innovation inconsistently in competition law cases, often assigning different weight to innovation in similar contexts and neglecting central parameters agreed upon in the literature. To address this inconsistency, the article proposes measures to maintain the predictability of competition law analysis while giving innovation a more central role in the definition of relevant markets, evaluation of market power, and assessment of practices.

The role of economics and the quality of antitrust case assessment in China: an empirical investigation

This article empirically measures indicators capturing the role of economics in the antitrust decisions of the Competition Authorities of China from 2010 – 2021. The methodology allows that identification of the legal standards (LSs) adopted in assessing different conduct types and their evolution. The LSs are compared to their theoretically optimal level in order to deduce quality of enforcement. Comparative analysis is undertaken with published results on the role of economics for EC’s DGCOMP, UK’s CMA and Russia’s FAS. The Chinese Authorities’ enforcement record lags behind in quality that of DGCOMP and CMA in abuse of dominance cases though it is already well ahead of countries in which their modern Competition Law enforcement started at about the same time (2008), like Russia.

Endogenous Merger Decisions Among Competitors: Impact of Limited Capacity and Loyal Segments

We study endogenous merger decisions among three competing firms with asymmetric capacity: one large firm has ample capacity, and two small firms have limited capacity. Each firm can either operate independently or merge with another firm. Because of antitrust laws, all three firms merging is not permitted. When two firms merge, the merged entity and the remaining independent firm use the resulting capacity to capture their own “loyal buyers” and compete in price for price-sensitive “disloyal switchers.” We first consider a base model in which the size of loyal buyers for different firms is symmetric. We find that, in equilibrium, either there is no merger or the large firm will merge with a small firm as a “mixed merger.” We explain how this equilibrium structure is driven by the mergers’ impacts on market competition and firms’ pricing aggressiveness. Specifically, the mixed merger that can most effectively reduce price competition is the equilibrium under relatively competitive market conditions (i.e., the size of loyal buyers is small and capacity is large but limited). We also extend to the case with asymmetric size of loyal segments and show that two small firms merging (“small merger” structure) can be the equilibrium structure when the large firm has a much larger loyal segment than the small firms and the small firms’ capacity is sufficiently large. The impacts of mergers on social welfare and consumer surplus provide practical implications from the antitrust perspective. The antitrust agencies can approve a mixed merger to improve social welfare under certain conditions, but if the agencies pay more attention to consumer surplus, then mixed mergers should not be permitted. Small mergers, though sometimes not the equilibrium structures, can improve social welfare and consumer surplus. In such cases, the government can appropriately promote mergers that are beneficial for society and/or consumers by adopting some restrictive measures or offering incentives. This paper was accepted by Jeannette Song, operations management. Funding: The work of D. Wang was supported by the National Natural Science Foundation of China [Grant 72401275]; the work of X. Wu was supported by the National Natural Science Foundation of China [Grants 72025102, 72293560/72293565]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2022.01943 .

Dynamic diffusion

Abstract Research on legal diffusion typically focuses on laws’ initial adoption and ignores their later evolution. We develop a typology of three subsequent diffusion patterns: convergence, when countries revise laws to move closer to leading regulators; customization, when countries revise laws to move away from leading regulators; and stagnation, when countries cease legislating, leaving initially adopted laws in place. We then propose a general theory suggesting that economic size and geographic distance from leading regulators predict which of the three patterns countries follow. We explore this theory with case studies on the dynamic diffusion of antitrust laws in Russia, Colombia, and Australia.

Information Systems and Mechanism for Prevention of Cyber Frauds

Cyber criminals are targeting online frauds, exploiting anonymity to deceive. They use fake websites, fake ads and stolen credit or debit cards for purchases. Bank frauds, despite high-speed processing and technical assistance, can damage a bank's reputation and operational efficiency, necessitating a strong emphasis on business ethics in the banking sector. The machine learning and artificial intelligence enhance online security of information systems. US enforces anti-trust laws and promotes stakeholder rights, addressing fraud and identity theft through safety tips and civil law implementation. Cyber criminals steal personal information for unauthorized purchases, identity theft, and fraudulent activities. Machine learning and artificial intelligence can enhance online security and user awareness. AI-based threat detection analyzes network activity for cyberattacks, limiting damage. Multi-Factor Authentication (MFA) combines traditional passwords with biometric authentication for enhanced security. The application of Big Data systems allows administrations for the collection and analysis of Data and its storage obtained from various sources, using platforms like Hadoop, Apache Spark, and Kafka for real-time processing and data analytics. Digital devices are increasingly being used in banking frauds, posing significant risks to both customers and the banking sector, necessitating stricter regulations and enforcement measures. Common banking sector issues include negligent, fraudulent, and deviant behavior, affecting various functions of getting, gathering, transporting, disbursing, loaning, trading, capitalizing, replacing, and servicing money-claims domestically and internationally. This paper discusses machine learning and anomaly detection techniques for preventing fraud in online payment systems, including behavioral profiling and Bagged Decision Tree models along with other methods.

PANCASILA AND MANAGEMENT OF MONOPOLISTIC COMPETITIVE MARKET IN THE STUDY OF THE NATIONAL CRIMINAL CODE NUMBER: 1 OF 2023 AND CHINESE FOREIGNERS

In Indonesia, the National Criminal Code (KUHP) is based on the principles of Pancasila. This paper analyzes the legal and ethical frameworks guiding market practices in Indonesia, while examining the intersection of national legal standards and the influence of foreign participants in the economy. The research contributes to the understanding of how the integration of ideological values and legal regulations is integrated within the context of Indonesia's national Criminal Code Number 1 of 2023, particularly in relation to Chinese foreigners. This study provides insights into the legal, ethical, and economic practices guiding the management of monopolistic competitive markets in the study of the national criminal code number 1 in 2023 and China's foreign constitution. The analysis technique used is a qualitative approach that examines laws and regulations as reflections of Pancastila values, comparing them with Chinese foreign laws to understand how Pancasola principles can be applied to resolve monopoly cases. The study also examines whether the alignment of antitrust laws and economic democracy with Pancasilla leads to tangible improvements in market fairness and societal well-being. This research could provide insight into the practical implementation of ideologies in economic regulation and their impact on fostering a more equitable and transparent economic environment.

Innovative Practices and Future Directions of Antitrust in Online “Live Streaming Sales”

Online “live streaming sales”, as an emerging platform economic model, exhibits significant differences in economic characteristics compared to traditional industries. Therefore, unique strategies distinct from those applied to traditional industries should be adopted in antitrust governance within the realm of online “live streaming sales”. China has implemented innovative practices from multiple perspectives, including legislation and law enforcement. However, the rapid advancement of antitrust regulation in online “live streaming sales” through administrative means poses challenges related to high economic costs, necessitating the establishment of a long-term regulatory mechanism centered on innovation-driven development. The key to achieving long-term regulation lies in ensuring the legalization of antitrust supervision, specifically involving the construction of a scientific and stable policy framework for antitrust regulation, the improvement of a legalized antitrust law enforcement system, the enhancement of the systematic and effective guidance for antitrust compliance, and the promotion of innovative practices in antitrust law enforcement policies. These measures will effectively maintain a fair competition order in the market and promote the healthy and sustainable development of the digital economy.

The problems of adapting Antitrust Law to the digital economy

In connection with the Fifth Antimonopoly Package, the author analyzes the effectiveness of new competition law. The aim of the research is to identify the legal and economic consequences of including the term “network effect” and special legal structures for abuse of a dominant position in digital markets in Russian legislation. The study is based on Russian and foreign legislation, materials from judicial practice, and scientific research. The new rules make it possible for the existing legal regulation on the protection of competition to be applied to the phenomena of the digital economy. However, in the digital sectors, prohibiting the abuse of a dominant position contributes to strengthening the dominance of platform operators and the formation of a digital monopoly. This is not entirely consistent with the goals of antitrust regulation. With the consolidation in the provisions of Russian law of the principle of technological neutrality, as well as the design of a public contract, the strengthening of the dominance of platform operators may be restricted. A consequence of the lack of unified terminology in the Fifth Antimonopoly Package and legislation on digital platforms is the unreasonable limitation of the subject composition of the prohibition of abuse of a dominant position in digital markets. The Fifth Antimonopoly package applies to the activities of marketplaces and aggregators, but does not extend to digital ecosystems and digital services in the format of applications, cloud storage, social networks, search engines, streaming services, among others. This limitation will be overcome by applying the general rules on the prohibition of monopolistic activities and unfair competition to digital ecosystems and digital services. The author draws attention to a number of practical problems in applying dominance criteria to the activities of digital intermediaries, focusing on their business model. Conclusions are drawn about the advisability of expanding the subject composition of relations regulated by the new special rules of the Fifth Antimonopoly Package. Legal means are also proposed aimed at ensuring a balance of interests of the dominant digital platform operators and users.

Introduction of a New Satellite Model for Participation in Clinical Trials in a Consortial Comprehensive Cancer Center with Four University Hospitals in Germany

Introduction: The trend toward personalized medicine leads to very small study cohorts for clinical trials, which makes it difficult to recruit patients in a single study center. On the other hand, the administrative effort required to initiate a clinical trial is very high. As a result, Germany runs the risk of falling behind other countries as a trial location. For this reason, the Center for Integrated Oncology Aachen Bonn Cologne Duesseldorf (CIO ABCD) has been working on the challenge of a new satellite model in which the main trial center is the only one to conclude a trial center contract with the sponsor and also handles all formalities with it. The remaining sites constitute the satellites. In contrast to former satellite models, the entire study-related interventions are carried out at each site in the present model. Methods: In order to evaluate the approvability of the model, contact was made with both higher federal authorities and the responsible inspectorate, and none of them declared themselves responsible for a possible basic approval. The four ethics committees contacted agreed to the model subject to certain framework conditions. In addition, the model was validated by the preparation of several legal opinions on various issues (medical, labor, antitrust law). Conclusion: Study participation close to home is a decisive advantage for multimorbid patients. As up to four locations form a trial site in the model, a large catchment area can be covered with reduced administrative costs. The satellite model developed is intended to give patients broader access to medical innovations in cancer therapy.

Antitrust Laws and the Future of Market Competition

Purpose: The general objective of the study was to investigate antitrust laws and the future of market competition. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to antitrust laws and the future of market competition. Preliminary empirical review revealed that while existing antitrust frameworks had been instrumental in promoting competition and preventing monopolistic practices, they faced significant challenges in the digital age. The rapid evolution of technology and the rise of digital platforms had created new competitive dynamics that traditional antitrust laws struggled to address. The dominance of a few tech giants led to market concentration, reducing the scope for competition and innovation. The study highlighted the inadequacies of current antitrust enforcement in dealing with digital platforms, data control, and network effects. Additionally, it emphasized the need for international cooperation and a balanced approach to antitrust enforcement that considered both competition and innovation to ensure that the benefits of the digital economy were widely shared. Unique Contribution to Theory, Practice and Policy: The Structure-Conduct-Performance (SCP) Paradigm, Contestable Market Theory and Innovation and Monopolistic Competition Theory may be used to anchor future studies on antitrust laws and the future of market competition. The study recommended updating theoretical frameworks to include factors like data control and network effects, and adopting more flexible and adaptive approaches in antitrust enforcement. It advocated for the creation of specialized regulatory units focused on digital markets, equipped with the necessary resources and expertise. The study also highlighted the importance of international cooperation in antitrust enforcement to address cross-border anti-competitive practices effectively. Furthermore, it suggested continuous dialogue with industry stakeholders to develop more informed policies and emphasized the role of consumer education in promoting competitive markets. These recommendations aimed to enhance antitrust laws and ensure robust market competition in the digital age.

New Amateurism

This Article proposes a new model for the legal and economic relationship between college athletes and their schools. The National Collegiate Athletic Association and its member conferences and schools are besieged with legal challenges over rules that restrain the capacity of athletes to earn compensation for their athletic labor and the commercial value of their identities. The legal challenges are extensive and scrutinize membership rules under labor, employment, and antitrust laws. The days of “amateurism” and the “student-athlete” enjoying judicial and administrative deference are over. For college sports to maintain a character distinct from professional leagues, university athletic programs that feature de facto pro teams and those that rely on students who play a sport should be formally separated.

An Antitrust Analysis of the NCAA Transfer Policy

The National Collegiate Athletic Association (“NCAA”) is no stranger to antitrust law. As a trade association composed of nearly all U.S. colleges offering competitive sports, its rules are regularly challenged under antitrust law. In the past 40 years, the NCAA has faced challenges to rules limiting televised game broadcasts, curtailing assistant coaches’ pay, and restraining players’ compensation, among other issues. Restraints on college athlete transfers also could subject the Association to reasonable legal scrutiny. Restrictions on the ability to transfer can harm athletes by preventing their immediate eligibility even though transferring could allow them to be closer to family, enroll in more academically rigorous schools, or escape abusive coaches. Transfer restraints have an especially restrictive effect on players hoping to one day play in the National Football League (“NFL”). For these individuals, the college football system is the primary opportunity to showcase talent before declaring for the League’s draft. The NCAA’s transfer rules keep many of these elite players on their teams’ benches. This hurts their ability to prepare for careers in the NFL. And it denies football fans the opportunity to watch them perform in college. The NCAA’s rules that prevent football players from freely transferring between schools have changed over time. Why? Because of the changing preferences of members of the NCAA Division I Council (“NCAA Council”), a group of college athletic directors and administrators. In April 2021, the NCAA Council changed its rules to facilitate the movement of football players between schools, allowing athletes who had not previously switched schools to pursue transfer opportunities by entering a portal within a 60-day window. On October 4, 2023, the NCAA Council reduced the transfer window from 60 to 45 days. In this Essay, we explore the antitrust consequences of this latest action by the NCAA Council, as well as the broader competitive effects of limits on college football player movement. We conclude that: (1) the NCAA’s transfer limits impose substantial anticompetitive effects; (2) the NCAA could offer (but would need to prove) a justification based on reduced fan interest from a lack of team stability; (3) less restrictive alternatives (including the 60-day transfer window) are available; and (4) the restraint’s anticompetitive effects are likely to outweigh its procompetitive effects.