Antitrust Research Articles

Fungsi Hukum Pembangunan Ekonomi dalam Persaingan Usaha Yang Sehat

The necessity of law in upholding the principles of the constitution, particularly in governing various aspects of people’s lives, notably its enforcement and impact on economic advancement, holds significant importance. Economic law emerged in response to the rapid expansion and progress of both domestic and global economies. Across nations, legal frameworks are utilized to regulate and supervise economic and socio-technical activities, ensuring that economic progression does not compromise individuals’ rights and welfare. The introduction of the Business Competition Law was aimed at fostering a competitive market economy, allowing for fair competition between economic entities and society. The primary objective of this legislation is to forestall monopolistic practices and unfair business competition. Through the enforcement of business competition law, the aspiration is to attain economic efficiency, leading to the enhancement of public welfare. Monopolistic activities contribute to economic disparities, adversely impacting societal harmony. For instance, collusion among businesses to dictate prices can harm consumers significantly. Essentially, a select few enterprises can engage in agreements to segment markets, control prices, regulate the quality and quantity of goods and services (through cartels), all geared towards maximizing profits swiftly. Such anti-competitive practices are unjust and disadvantageous to consumers. In the global context, fostering healthy business competition is crucial to preventing detrimental business practices and promoting fair economic competition.

MERGER CONTROL REGIME IN MALAYSIA: PAST, PRESENT AND WAY FORWARD

Merger control is one of the main pillars of a competition law regime. Without a merger control provision, a competition authority is unable to prevent a problematic merger that lessens competition in the market from being consummated. Malaysia, having its national cross-sector competition law regime in place only since 2010, has, apart from sectoral regulations, no merger control regime in place. The country has adopted a sectoral approach to merger control, empowering certain regulators to oversee merger activities in a specific market or industry. Since 2020, the Malaysia Competition Commission (MyCC) has been working on the proposed amendments to the Competition Act 2010 (CA 2010), aiming to incorporate a merger control regime as one of its main agendas. The primary objective of this paper is to explore the development of the merger control regime in Malaysia. The main contribution of this paper is the analysis of the merger control regime in the proposed amendment of the CA 2010 and an understanding of the issues and challenges involved in the enforcement of merger control provisions. The research is doctrinal, based on descriptive and analytical methods, and relies on both primary and secondary data. The research is doctrinal, utilising descriptive and analytical methods, and relies on both primary and secondary data. It also incorporates a comparative element by examining experiences from more developed jurisdictions, such as the European Union and the United States, which have extensive experience in enforcing merger control. Conclusions can be drawn from debates in these jurisdictions regarding potential adjustments to their respective merger control regimes.

The South African Competition Commission COVID-19 easing of competition rules for private healthcare to facilitate public-private interaction - a media content analysis

BackgroundFuture emergencies from climate degradation or diseases are likely, prompting ongoing investment in emergency readiness and learning from country responses. South Africa’s healthcare system, divided into public and private sectors, required a coordinated, intersectoral response to the COVID-19 pandemic. A coordinated action that the South African government took was adapting competition regulations. The South African Department of Trade, Industry and Competition on 19 March 2020, published a block exemption (easing of competition rules) for healthcare to promote standardization of practices across the health sector and facilitate agreements between the National Department of Health and the private sector to ensure adequate service delivery to all South Africans.MethodsWe assessed how much coverage the block exemption for healthcare received in the media and if the scope included details of what the exemption meant, how stakeholders and the public could use it, and the resulting public sentiment. We conducted a media content analysis to select, screen and assess the media material. Online and social-media articles in the public domain from 19 March 2020 to 19 March 2021, in English were considered.ResultsWe analysed 22 online media articles that matched our inclusion criteria. Twenty of these reflected a positive sentiment, and two were negative. Media reported on the COVID-19 block exemption in healthcare only in the first three months of our study period. The articles primarily communicated what the block exemption meant, focusing on allowing collaboration, the purpose of the exemption, the activities granted under the exemption and the actors to whom it applied. It’s estimated that these media articles could have been read by up to 432,003 people out of a total population of just under 43 million people over the age of 15 years.ConclusionIn times of crisis, the media has a significant responsibility to provide accurate information to the public. However, the accuracy and reliability of such information depends on the quality of official sources on which the media relies. Our research shows that very few media reports were available about the block exemption for healthcare. While the government implemented the exemption, it did not communicate its purpose directly to the public. Our research highlights the need for better communication between policymakers and the media.

International competition laws and trade credit financing

Using a novel dataset of country-level competition laws across 34 countries, I examine and find a significant positive impact of competition laws on the access and provision of trade credit financing. A wide variety of robustness tests corroborate. In cross-sectional analysis, I find that the effect of competition laws on trade credit is stronger for financially constrained firms, and firms in countries with poorer institutional environments. My finding has important implications for both research and practice.

Coherence between Data Protection and Competition Law in Digital Markets by Klaudia Majcher (Oxford: Oxford University Press, 2023).

Coherence between Data Protection and Competition Law in Digital Markets by Klaudia Majcher (Oxford: Oxford University Press, 2023).

The European Commission’s Challenge to Consent or Pay: Demystifying the Digital Markets Act?

The European Union’s (EU’s) Digital Markets Act (DMA) was hailed as a new era of digital regulation following a decade of debates on the flexibility of traditional competition law. Article 5(2) DMA requires gatekeepers to offer users a choice to opt-out of the data exchanges across a gatekeeper’s services. Half a year after becoming applicable, its fitness for purpose and theoretical underpinnings are in the spotlight as the European Commission (EC) investigates Meta’s consent or pay solution on the assumption that such a model is not compliant. This paper considers whether this assumption is supported by an interpretation of Article 5(2) DMA and assesses the risks posed by the EC’s position to the integrity of the DMA and its aim to revolutionize competition law.

The Digital Markets Act: A partial solution to antitrust’s remedy problem

Antitrust remedies in digital markets have shown little effectiveness. The Digital Markets Act (DMA) offers a partial solution by establishing a multi-level remedial pyramid that addresses several of the challenges the Commission faced when remedying antitrust infringements. At the base of this pyramid are the DMA’s obligations, which embed ex ante remedies that are faster and more prescriptive than antitrust remedies. The second level consists of regulatory dialogue, an open and iterative specification procedure that can mitigate information asymmetries and future-proof remedies. The third level is the non-compliance procedure, which complements the regulatory dialogue. At the pyramid’s apex is the systematic non-compliance procedure. It empowers the Commission to impose ex post remedies, which can be more forceful than their EU competition law counterparts. Although the DMA enhances the Commission’s remedial process and powers compared to EU competition law, it is crucial for the Commission to exercise its authority judiciously. The Commission’s focus should be on the intermediate layers of the remedial pyramid, particularly the regulatory dialogue.

Effects of competition law on consumer welfare-evidence from Zambia

This study examined the effects of competition (antitrust) law on consumer welfare in Zambia, with a focus on market practices, pricing, and consumer protection. Aimed at promoting fair competition, competition law seeks to benefit consumers through lower prices, improved quality, innovation, and diverse choices. The research, organized around four key objectives, revealed mixed outcomes in Zambia. High market concentration often led to elevated prices and limited choices, reducing consumer welfare. While Zambia's regulatory framework aims to curb anti-competitive practices, resource constraints hinder enforcement, allowing such practices to persist. Merger controls generally preserved market competition, yet inconsistent application weakened these gains. Consumer awareness emerged as a significant factor, with informed consumers enhancing regulatory effectiveness. The findings emphasized the need for robust enforcement, an improved legal framework, and increased consumer education to maximize the benefits of competition law, better protect consumer interests, and foster competitive markets in Zambia.

Antitrust laws, market competition and corporate green innovation

Utilizing a dataset from 2003 to 2016 encompassing Chinese firms listed on the A-share market, the current study conducts a robust analysis through a quasi-experimental approach, focusing on the enforcement of the Anti-Monopoly Law in 2008. By employing the Difference-in-Differences (DID) technique, it delves into the profound connections between anti-monopoly laws, market competition, and corporate green innovation. The rigorous enforcement of anti-monopoly laws has inhibited green innovation in enterprises with stronger original monopoly power, reducing the green innovation performance gap between them and enterprises with weaker monopoly power. Moreover, the study reveals that anti-monopoly regulations bolster the occurrence of green innovation by intensifying market competition, driving companies to pursue distinct competitive edges. The analysis further suggests that the negative impact of anti-monopoly laws on eco-innovation is more significant in state-controlled enterprises and in sectors with pronounced monopolistic traits that are not technology-intensive. This scholarly work not only contributes to the academic discourse on the nexus between anti-monopoly legislation and corporate inventive endeavors but also equips policymakers with tangible insights into leveraging legal frameworks to foster environmentally sustainable corporate innovation.

An Oasis or a mirage? How dynamic pricing is assessed under UK competition and consumer protection law

This article explains the consumer protection and competition law rules that apply to dynamic pricing in the United Kingdom. It describes the framework for assessing dynamic pricing under current and incoming UK legislation (including the Digital Markets, Competition, and Consumers Act 2024). It explains what dynamic pricing is, and how this has to date been regarded by the Competition and Markets Authority and other agencies. It then provides a summary of potentially applicable competition and consumer rules. Finally, it sets out a list of recommendations for businesses considering dynamic pricing strategies.

A new frontier for competition litigation: private enforcement in digital markets following the DMCC Act

On 24 May 2024, the Digital Markets Consumer and Competition Act obtained royal assent. The DMCC Act establishes, inter alia, a bespoke regulatory regime for digital markets in the United Kingdom (Digital Markets Regime). This article considers both the scope for private enforcement under that Digital Markets Regime, as well as the potential impact that the Digital Markets Regime may have on the private enforcement of competition law in digital markets.

Assessing information exchange among competitors in financial services markets

The exchange of certain types of information among competitors can trigger competition law concerns, as it may heighten the risk of market coordination or lead to the exclusion of competitors not involved in the exchange. Yet, under certain conditions information sharing may also offer benefits. This article discusses two key examples in financial services where evaluating information exchange requires a detailed understanding of the unique dynamics within those markets: the 2010 Office of Fair Trading investigation into information sharing among motor insurance companies which serves as a landmark for assessing the pro-competitive benefits of information exchange in financial products, and the 2019 Financial Conduct Authority competition investigation into information exchange among asset managers during initial public offerings. The IPO case is an important case that highlights the complexity involved in determining the boundary between beneficial and harmful information exchange.

Standard Essential Patents and Abuse of Dominance: Implications for India's Telecom Sector

The rapid advancement of technology has positioned Standard Essential Patents (SEPs) as a critical component of innovation in the telecommunications sector, particularly in India. SEPs are patents that cover inventions essential to industry standards, facilitating interoperability and ensuring effective communication between devices. However, the significant market power held by SEP holders raises important concerns regarding the potential abuse of dominance, especially when these entities impose excessive licensing fees or engage in discriminatory practices. This paper examines the intersection of SEPs and competition law in India, focusing on the legal challenges faced by the Competition Commission of India (CCI) in regulating SEP holders under the Competition Act, 2002. By analyzing the regulatory framework and its implications for market dynamics, this study highlights the necessity for a balanced approach that protects both intellectual property rights and competitive practices. The findings suggest that while existing legal mechanisms aim to address abuses of dominance, there is a pressing need for clearer guidelines and stronger enforcement to ensure that SEPs foster innovation without stifling competition in India's rapidly evolving telecom landscape.

Vertical agreements and EU competition law: a survey covering 2023–2024

Vertical agreements and EU competition law: a survey covering 2023–2024

دور العلاقات العامة في نشر ثقافة المنافسة ومكافحة الممارسات الاحتكارية بالهيئة العامة للمنافسة: دراسة مسحية

This research aims to study the role of the General Authority for Competition in promoting a culture of competition and combating monopolistic practices in the Saudi market, as well as the role of public relations in raising public awareness of these laws and practices. Data were collected through a questionnaire directed to 200 participants, where demographic data were analyzed and participants' opinions were identified about the means of communication used by the Authority, the awareness activities it carries out, the role of public relations, in addition to the topics covered in communication activities and proposals for developing public relations strategies. The results showed that most of the participants were males, with a variety of age groups, and most of them enjoyed a high level of education, and they worked in the public and private sectors. Regarding means of communication, it was found that the General Authority for Competition effectively uses traditional media and social media to spread awareness of competition and anti-monopoly laws. Digital advertising was also used as a main tool to promote a culture of competition. As for awareness activities, the data showed that the Authority organizes awareness events, participates in exhibitions and forums to highlight the risks of monopoly, and holds educational workshops for institutions and companies. The role of public relations in raising public awareness through social media and electronic means was highly appreciated by the participants, reflecting the importance of these channels in activating interaction with the public. Regarding proposals for developing strategies, participants suggested using modern technology such as artificial intelligence and improving electronic applications to increase public awareness of competition, in addition to enhancing cooperation with academic institutions and organizing virtual seminars. The study recommends the need to enhance the use of technology and improve public relations strategies to increase the effectiveness of awareness of competition laws, while expanding partnerships and developing innovative media content.

The link between board characteristics and EU competition law infringements

The link between board characteristics and EU competition law infringements

Breaking up Big Tech: scissor-line suggestions for smart cuts

Abstract Calls for the breakup of Big Tech, especially where behavioural remedies are cumbersome to enforce effectively, are becoming louder on both sides of the Atlantic. If there are going to be structural remedies against network companies, we propose they better be ‘smart cuts’: targeted interventions to insulate core platform functions with minimal damage to positive network effects. One major concern with dominant platforms is information bias: intentional distortion of information presented to a user to steer them away from the best matches to their query and towards content that benefits the platform instead. It can be addressed by separating a hybrid platform’s recommender system from its peripheral services with commercial tentacles in the real economy. This realigns incentives to provide users with unbiased information and invites competition on and between intermediaries. We offer scissor-line suggestions for the gatekeepers Alphabet, Amazon, and Apple. Smart cuts have a conceptual basis: they go beyond unwinding recent acquisitions and open up ecosystem structures to competition, allow for targeted flanking access regulation, and alleviate competition law enforcement.

The value of screening tools in cartel cases

ABSTRACT In this paper, we analyze the value of screening tests for competition authorities in cartel cases to raise red flags about possible cartels and as a deterrence on new or existing cartels. We start by looking at one of the main problems of screen tests: false positives. We show that multiple screen tests can function as a useful tool to reduce false positives. We then study the legal foundations of screen tests considering the EU competition law and build a case to use screen tests to trigger dawn raids.

Smart City Data Commons and EU Competition Law – A Conflict in the Making?

Smart City Data Commons and EU Competition Law – A Conflict in the Making?

Unveiling factors and contingencies influencing exhaustion in professional esports players: evidence from China

PurposeThe rapid growth of professional esports has highlighted the lack of a universally recognised governing body to standardise operations and competition rules. This absence presents many challenges. A key concern is the well-being of professional esports players (e-pro-players), who often suffer from exhaustion. This study aims to examine the factors contributing to exhaustion among e-pro-players.Design/methodology/approachUsing the conservation of resources theory, we developed a framework to explain the factors leading to e-pro-players’ exhaustion and the conditions under which it occurs. We tested this framework with 126 responses in a dyadic survey from e-pro-players and their coaches in China. Additionally, we gathered qualitative insights from 50 interviews with esports stakeholders to provide more context for our quantitative findings.FindingsOur study found that e-pro-players’ intrinsic motivation to engage in training reduces their exhaustion, while their struggle to cope with uncertainty in esports environments (intolerance of uncertainty) increases it. The effect of intrinsic motivation is weaker for those who believe their talent for playing esports is fixed (entity belief) but stronger for those with high relational identification with their coaches. Additionally, the link between uncertainty intolerance and exhaustion is stronger in players with strong entity beliefs.Originality/valueOur study sheds light on the factors contributing to e-pro-players’ exhaustion within the partially regulated professional esports environment, a phenomenon that significantly influences their overall well-being. Through the identification and examination of these factors and the conditions under which they affect exhaustion, we deepen the understanding of the drivers of exhaustion for e-pro-players who operate in an industry lacking standardised regulations.