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osewalrusA good discussion of the EU antitrust decree against Google and the issue of "digital monopoly."
https://stratechery.com/2017/ends-means-and-antitrust/
I'll caveat, btw, that the author does fall into the trap of being annoyed at the Apple antitrust case bcause Amazon=evil. Apple offered to create a price fixing deal among the 5 major book publishers. This was a victory for competition? I'm happy to say Amazon exercises undue market power in the retail market these days (an issue that will be debated as part of its acquisition of Whole Foods). But that does not mean that anyone who offers to build a monopoly to fight it is hero. I'll point out Amazon was initially celebrated as introducing competition into a marketplace dominated by the same 5 publishers and 2 major retailers (Borders and Barnes & Noble).
But to return to the substance. The basic thesis, which I think is correct, is that the EU antitrust policy values competition as positive in and of itself. By contrast, US antitrust has evolved to look exclusively at whether monopoly behavior harms consumers -- usually with a very narrow focus on pricing. (How do you determine pricing in a monopoly market? An excellent question!)
Anyway, it's a good read for those interested in the subject. it is written in plain English not econo speak.
https://stratechery.com/2017/ends-means-and-antitrust/
I'll caveat, btw, that the author does fall into the trap of being annoyed at the Apple antitrust case bcause Amazon=evil. Apple offered to create a price fixing deal among the 5 major book publishers. This was a victory for competition? I'm happy to say Amazon exercises undue market power in the retail market these days (an issue that will be debated as part of its acquisition of Whole Foods). But that does not mean that anyone who offers to build a monopoly to fight it is hero. I'll point out Amazon was initially celebrated as introducing competition into a marketplace dominated by the same 5 publishers and 2 major retailers (Borders and Barnes & Noble).
But to return to the substance. The basic thesis, which I think is correct, is that the EU antitrust policy values competition as positive in and of itself. By contrast, US antitrust has evolved to look exclusively at whether monopoly behavior harms consumers -- usually with a very narrow focus on pricing. (How do you determine pricing in a monopoly market? An excellent question!)
Anyway, it's a good read for those interested in the subject. it is written in plain English not econo speak.
