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Your Weekly Digest | 206

Valur Thrainsson
3 min read

Good morning,

Here below, you find the most recent and relevant competition and anti-trust news, blogs and journal publications over the last week.

Enjoy :)

Pressure grows for antitrust action against German software giant | POLITICO
EU and German competition authorities are looking into claims SAP abuses dominance of market for key corporate applications.

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Google pays Apple to make its search engine the default on its devices, but the iPhone maker actually has more market power in the relationship. Read more.
When Rishi Sunak announced the fourth Covid related support package in October 2020, UK government debt had already been at the unprecedented level of £2 trillion, exceeding 100% … Read more.
One of the key recommendations of the House Judiciary Committee’s antitrust report which seems to have bipartisan support (see Rep. Buck’s report) is shifting evidentiary burdens of proof to defendants with “monopoly power.” These recommended changes are aimed at helping antitrust enforcers and private plaintiffs “win” more. The result may well be more convictions, more... Read more.
After two rounds of public consultations that ended 8 September 2020, the European Commission (‘Commission’) appears to be on track and make its proposals for new enforcement powers more concrete. The Commission intends to adopt its two definitive legislative proposals before the end of 2020. In this post, we take a look at where the... 
Stephen Hansen, Massimo Motta
An upstream firm with full commitment bilaterally contracts with two ex ante identical downstream firms. Each observes its own cost shock, and faces uncertainty... Read more.
Jonathan B. Baker
This essay provides a perspective on the role of antitrust law in protecting and fostering competition in the digital economy, with particular attention to online... Read more.
Messod D. Beneish, Campbell R. Harvey, Ayung Tseng, Patrick Vorst
The increasingly service-based U.S. economy places a high reliance on innovation. While there is considerable research on the importance of certain innovative... Read more.
Messod D. Beneish, Campbell R. Harvey, Ayung Tseng, Patrick Vorst
We present experimental evidence on the effectiveness of corporate leniency programs. Different from other leniency experiments, ours allows subjects to have free-form communication. We do not find much of an effect of leniency programs. Leniency does not deter cartels. It only delays them. Free-form communication allows subjects to build trust and resolve conflicts. Reporting and defection rates are low, especially when compared to experiments with restricted communication. Indeed, communication is so effective that, with leniency in place, prices are not affected if cartels are fined and cease to exist. Read more.
Oliver Budzinski, Sophia Gaenssle, Annika Stöhr
The ministerial proposal for a 10th amendment of the German competition law particularly addresses abuse control and seeks to tighten this pillar of competition... Read more.
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