These days, the sharing economy is all around us. One person might use her smartphone to get an Uber ride to a dinner arranged through Feastly. Another might hire a Taskrabbit to clean up his garden for spring and order custom pots for his flowers from a seller on Etsy. But do these new services come with risks to competition and consumers? And how should regulations governing traditional suppliers be tailored to apply to them?
Consumers frequently contact the Bureau of Competition to alert us that the cost of a prescription drug suddenly spiked up, and ask if the FTC can take antitrust action to bring the price back down. The answer in a nutshell is that it depends on the reason for the price change.
A fundamental principle of competition is that consumers – not regulation – should determine what they buy and how they buy it. Consumers may benefit from the ability to buy cars directly from manufacturers – whether they are shopping for luxury cars or economy vehicles. The same competition principles should apply in either case.
UPDATE: June 6, 2016 – This blog is no longer current. See our new blog, "Wiring your HSR filing fee just got easier," for current information on paying the HSR filing fee.
According to the Bureau’s Statement on Negotiating Merger Remedies, the goal of a structural merger remedy is to maintain or restore competition in the markets affected by the merger while allowing the parties to proceed with those parts of the merger that do not raise competitive concerns. Usually, this approach results in a Commission order to divest key assets or capabilities to a buyer that will become a new competitor in the market and that can maintain the competitive status quo.
Spring has come again, and with it, flocks of antitrust lawyers and economists have returned to Washington, DC for the ABA’s annual Antirust Law Spring Meeting. I have once again prepared the Bureau of Competition’s report on its activities and accomplishments over the past year.
In recent investigations of hospital mergers, the merging parties often make the argument that the acquired firm is flailing, if not outright failing. Thus, the argument goes, the transaction is necessary to keep the acquired hospital in operation. But courts have set stringent requirements for meeting the failing firm defense, and as set out in the Horizontal Merger Guidelines §11, a company can assert what is known as a “failing firm” defense only if
From time to time, the Commission revises its rules of practice in the interest of fairness, flexibility and efficiency—in other words, to improve the process it relies on for its investigations, studies and adjudicative proceedings. For instance, in 2009, the Commission made comprehensive changes that overhauled the Commission’s Part 3 adjudicative proceedings with the main goal of addressing concerns that they were too protracted.
Some will remember 1976 as the year of the nation’s bicentennial, but it was also the year that Congress gave the antitrust agencies an important tool to prevent harmful mergers before the harm occurs and before the assets and operations of the merging parties are joined in a way that precludes effective relief after-the-fact.
Recently, I appeared on a panel that discussed the Commission’s recent Section 5 cases.
There is still time to submit public comments on the FTC’s proposal to study the effectiveness of its remedial orders in merger cases. Fifteen years have passed since the Bureau’s previous Divestiture Study, which resulted in a number of important findings that caused the Commission to refine its approach and improve its orders.
Although FTC staff often rely on voluntary requests for information in the early stages of an investigation, the use of official subpoena and civil investigative demands authorized by the Commission is essential to uncover potential law violations, and when necessary, to pursue a law enforcement action in court to remedy any harm to competition.
Yesterday, the Supreme Court affirmed the Fourth Circuit’s decision to uphold the FTC’s order against the North Carolina State Board of Dental Examiners In a tour-de-force opinion laying out the proper scope of the state action doctrine first articulated in Parker v.
As anyone of a certain age can attest, the 1970’s were all about change. Hairstyles and hemlines were obvious signs, but in the world of antitrust, change came in the form of applying competition standards to the “learned professions,” and new thinking about the role of competition in helping contain health care costs.
Reminder: your appointment is coming up soon! Staff of the Federal Trade Commission and the U.S. Department of Justice Antitrust Division just posted the agenda for next week’s two-day health care workshop. One look, and you won’t need a second opinion – you definitely will want to attend.
The Ninth Circuit today affirmed the district court’s ruling that the merger of St. Luke’s Health Systems, Ltd. and Saltzer Medical Group violated Section 7 of the Clayton Act. Nearly two years ago, the Commission and the State of Idaho filed a complaint in federal court alleging that the combination of St.
Take a deep breath and hold it. Release. Now open your mouth and say, “aaahhh.”
Just as it is prudent to have your health examined regularly by professionals, we believe it is wise to periodically examine the competitive dynamics in the ever-evolving health care marketplace, a critical sector of the American economy.
When Congress passed the Hart-Scott-Rodino Antitrust Improvements Act of 1976, it created minimum dollar thresholds to limit the burden of premerger reporting. In 2000, it amended the HSR statute to require the annual adjustment of these thresholds based on the change in gross national product. As a result, reportability under the Act changes from year to year as the statutory thresholds adjust. The PNO fields many questions about the upcoming adjustments to the HSR thresholds from parties whose transactions may take place around the time of the revisions.
As discussed in a previous blog post, trade association members are subject to the same antitrust rules of the road as other companies or individuals who happen to be competitors. That means no price fixing, bid rigging, customer allocation or market division allowed, because these types of agreements are so plainly harmful that courts have condemned them as per se violations of the antitrust laws.
The PNO handles Hart-Scott-Rodino Premerger Notification Filings for well over a thousand transactions each year. When you submit an HSR Form with all of the required information, the PNO can quickly review the filing, and if necessary, forward it to the investigative staff who will focus on determining whether the acquisition presents competitive issues that warrant further review.