Antitrust 1 Prof. E. Fox Fall 2004 1 I. Introduction to Antitrust Law 4 a. General Background 4



Download 236.98 Kb.
Page60/75
Date04.04.2021
Size236.98 Kb.
1   ...   56   57   58   59   60   61   62   63   ...   75

Mergers


  • Celler-Kefauver Amendment to Clayton Act §7 – prohibits potentially anticompetitive mergers (effect “may be to substantially lessen competition, or tend to create a monopoly”)
  1. Early Cases and the Evolution of the Doctrine

  1. Horizontal and Vertical Effects  Market Definition and Anticompetitive Effect


  • Brown Shoe v. U.S. (1962)

  • Market Definition: outer boundaries of a product market are determined by a) the reasonable interchangeability of use or b) the cross elasticity of demand b/t the product itself and substitutes

  • Submarkets – (unfocused and unhelpful definition ) practical indicia:

  • Geographic Market Definition:

  • a) correspond to the commercial realities of the industry and

  • b) be economically significant

  • Direct competition in a fraction of the geographic market d/n avoid proscription by §7

  • Effect of Merger on Competition:

  • Philadelphia National Bank (1963)

  • PNB Presumption – where merger is of important competitors and there is already concentration in the market (more than 30% share), and it increases concentration significantly (more than 33%), parties must make clear how the merger will be pro-competitive

  • Shifts burden to Δ to show that the merger is not anticompetitive

  • Geographic market – how should the law treat a merger if it would increase the merged firm’s ability to compete nationwide or globally, but harm the local business community (consumers)?
1   ...   56   57   58   59   60   61   62   63   ...   75




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page