The Short Answer: In a monopoly, a seller has market power to increase its selling prices to above-competitive levels. In a monopsony, a buyer has market power to lower its purchasing prices to below-competitive levels. A monopsony is an antitrust violation when a seller has monopsony power…
The Short Answer: Two or more businesses that work together to produce something. Antitrust Law: An Analysis of Antitrust Principles and Their Application (Areeda and Hovenkamp) (“A joint venture is a form of organization in which two or more firms agree to cooperate in producing some input that…
The Short Answer: Negative tying is where a seller conditions the sale of one product (the Tying Product) on the buyer agreeing not to purchase a second product (the Tied Product) from a competing seller. Why Is That Called A “Negative” Tie? A positive tie is where a seller conditions the…
The Short Answer: Companies that operate on different levels of the supply or distribution chain are vertical to one other. For example, a parts supplier and manufacturer. A manufacturer and a distributor. A distributor and retailer. Vertical companies don’t compete with one another. They’re more likely business counterparties.
On December 23, 2022, the U.S. Congress passed an omnibus spending bill incorporating the Merger Filing Fee Modernization Act. This new bill included significant changes to filing fee thresholds applicable to mergers and acquisitions reportable under HSR. On January 24, the Federal Trade Commission…
One of the ways the antitrust laws seek to protect consumer welfare is by categorizing certain types of conduct as per se illegal. The per se rule applies to restraints with which courts have had considerable experience and can predict with confidence that the restraint would be…