Skip to content

Your Weekly Digest | 6/2022

Valur Thrainsson
7 min read

Welcome to CompetitionFeed, a weekly newsletter with the most recent and relevant competition and anti-trust news, blogs and journal publications. Never miss an update. If you’d like to receive issues over email, you can sign-up here.

$66 billion deal for Nvidia to purchase Arm collapses | Ars Technica
SoftBank’s $66 billion sale of UK-based chip business Arm to Nvidia collapsed on Monday after regulators in the US, UK, and EU raised serious concerns about its effects on competition in the global semiconductor industry, according to three people with direct knowledge of the transaction.
Read More
The combined airline would offer 1,000 daily flights to more than 145 destinations in 19 countries and directly add 10,000 jobs by 2026. But consumer advocates have their doubts. Read more.
Google faces a fine after Russia's antitrust watchdog said the U.S. tech firm had breached rules related to suspending and blocking accounts on its YouTube video service. Read more.
UK’s CMA accepts Google’s post-cookie pledges, will ‘closely monitor’ Privacy Sandbox plan | TechCrunch
The U.K.’s competition authority has accepted commitments from Google over how it develops the post-cookie future of interest-based ad targeting online under its self-styled “Privacy Sandbox” proposal. In an announcement today, the Competition and Markets Authority (CMA) said it i…
Read More
The CMA has announced that industry rules setting out how grocery retailers should treat their suppliers will now apply to Amazon. Read more.
Today the Bundeskartellamt has cleared plans by EG Group Limited, Blackburn/UK, which operates the ESSO service station network in Germany, to acquire the service station network of OMV Retail Deutschland GmbH, Burghausen after amendments to the proposed merger. 48 service stations of EG Group or OMV in southern Germany must be sold to other companies. Read more.
The EFTA Surveillance Authority (ESA) has today adopted revised Guidelines on state aid for Climate, Environmental Protection and Energy (CEEAG). ESA will apply these when assessing state aid granted by Iceland, Liechtenstein and Norway to climate, environmental or energy-related projects. The guidelines give direction to the three states on providing aid to climate, environmental and energy-related projects. The guidelines aim... Read more.
The Bundeskartellamt preliminarily assesses that Condor is entitled under competition law to have access to feeder flights operated by Lufthansa to transport its long-haul passengers. Read more.
Priyanka Jain
The long-awaited judgement of the General Court in the price-fixing case against a world-leading provider of transport solutions, Scania, is out. On February 2, 2022, in a hybrid settlement case, the General Court dismissed the appeal filed by Scania. It upheld the decision of the Commission, which imposed a fine of € 880.5 million for... Read more
AMIT ZAC
A new working paper examines the relationship between competition policy and the decline in the labor share across the developed world and finds that effective competition policy may be an important factor in lowering levels of economic inequality. Recent years have seen increased policy and academic focus on the potential causes and effects of rising... Read more.
Richard Epstein
During this past year, the Biden Administration has been intent on expanding the scope of antitrust law through an Executive Order whose ostensible purpose is to improve competition in product and labor markets. In the abstract, this aim is laudable, but, as I have argued previously both here and here, the means chosen by the administration are not. It is widely agreed that monopoly (or monopsony) power reduces overall output and is thus a source of social loss. Read more.
Pablo Ibanez Colomo
The most recent developments on exclusionary abuses suggest that the reports of the demise of the Guidance Paper on exclusionary abuses might have been exaggerated. Just when we thought that it mig… Read more.
Alden Abbott
The Jan. 18 Request for Information on Merger Enforcement (RFI)—issued jointly by the Federal Trade Commission (FTC) and the U.S. Justice Department (DOJ)—sets forth 91 sets of questions (subsumed under 15 headings) that provide ample opportunity for public comment on a large range of topics. Before chasing down individual analytic rabbit holes related to specific... Read more.
Jacques Crémer, David Dinielli, Amelia Fletcher, Paul Heidhues, Monika Schnitzer, Fiona Scott Morton
The final stage of negotiations around the EU Digital Markets Act are underway. This column highlights five key sets of issues that remain under debate and provides an economic perspective. The authors support several of the proposed amendments, such as extending the prohibition on parity clauses and introducing new rules to address the anti-competitive use of default settings. They also agree with the intention of the latest proposals on self-preferencing, interoperability and data portability, and remedy options, but suggest some modifications. Read more.
Marc Ivaldi, Milena J Petrova and Miguel Urdanoz
Airline alliances have a long history yet there is no academic consensus on how they affect price levels and their impact on price dispersion has not yet been studied. We address this question using a novel methodology motivated by the service homogenization and increased price competiton in this industry in the recent years. Establishing an equivalence between the online sales process and a reverse English auction, we use methods from auction econometrics to work in a new way with the standard industry data set: using individual ticket sales where only aggregated prices have been used in the past. Applicable to other industries where sellers compete in prices, this approach allows us to reconsider the effect of airline alliances on the distribution of airfares in the US domestic market. We find lower price mean and dispersion in markets where airlines belong to an alliance as a result of the lower variability of costs. The methodology we apply here can be used to study any distribution of individualized prices, which are now prevalent since the advent of the digital economy. Read more.
Roman Inderst, Raphael Kuhlmann
Airline alliances have a long history yet there is no academic consensus on how they affect price levels and their impact on price dispersion has not yet been studied. We address this question using a novel methodology motivated by the service homogenization and increased price competiton in this industry in the recent years. Establishing an equivalence between the online sales process and a reverse English auction, we use methods from auction econometrics to work in a new way with the standard industry data set: using individual ticket sales where only aggregated prices have been used in the past. Applicable to other industries where sellers compete in prices, this approach allows us to reconsider the effect of airline alliances on the distribution of airfares in the US domestic market. We find lower price mean and dispersion in markets where airlines belong to an alliance as a result of the lower variability of costs. The methodology we apply here can be used to study any distribution of individualized prices, which are now prevalent since the advent of the digital economy. Read more.
Like the newsletter?
Forward it to your friends or share it on social media :)
Did your friend forward it to you?
Sign up
Suggestions or comments?
Reply to this e-mail or write to valur@competitionfeed.com
Kind regards, Valur Þráinsson, Founder of CompetitionFeed.com. Email: valur@competitionfeed.com
*|LIST:ADDRESS|*
Unsubscribe | View in browser