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Your Weekly Digest | Issue 256

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.

Good morning.

Last week we sifted through 5.000+ articles from 100+ publishers to help you stay updated!

Below are the pieces that I have handpicked and find the most recent and relevant competition and anti-trust news, blogs, and journal publications.

Enjoy!

Kind regards, Valur

Italy's competition authority slapped a €1.13 billion fine on Amazon for abusing its dominant position in the market and harming competitors in the e-commerce logistics service. The Autorità Garante della Concorrenza e del Mercato (AGCM) said on Thursday that Amazon was giving sellers using its logistics service, called “Fulfillment by Amazon,” advantages in terms of visibility and sales, including access to its “Prime” label. Amazon said it "strongly" disagrees with the AGCM's decision and will appeal. Read more.
South Korean shipbuilder Hyundai Heavy Industries' proposed acquisition of rival Daewoo Shipbuilding & Marine Engineering Co Ltd is set for an EU antitrust veto after the companies declined to offer remedies to allay competition concerns, people familiar with the matter said. Read more.
Microsoft is set to secure unconditional EU antitrust approval for its $16 billion bid for artificial intelligence and speech technology company Nuance Communications , three people familiar with the matter told Reuters. Read more.
A pharmaceutical company once owned by Martin Shkreli will pay up to $40 million in a settlement that will also finally end his infamous price-gouging scheme involving the antiparasitic drug Daraprim. Read more.
Millions of Australians are set to benefit from increased competition and cheaper airfares on Australia’s busiest routes as state and territory borders reopen and the domestic airline industry prepares for a peak summer period, the ACCC’s latest Airline Competition in Australia report reveals. The report, released today, shows that greater optimism among Australians that state and territory borders will remain open has been driving renewed confidence to fly, and a choice of four airlines on the country’s busiest routes appears to be putting downward pressure on airfares. Read more.
Leadership of the Federal Trade Commission, the Antitrust Division of the Department of Justice, and the Directorate-General for Competition of the European Commission launched the EU-US Joint Technology Competition Policy Dialogue in Washington, D. Read more.
The focus of this section is on the detailed analysis of the national databases and sectoral deep dives that provide some interesting overall insights into the levels and trends of concentration and participation in the economy. A summary of the more important findings per sector are outlined later in the report. Read more.
Tom Smith
The UK Competition and Markets Authority (“CMA”) investigation into the acquisition of Giphy by Facebook (now Meta) has been watched by merger control practitioners with morbid fascination. It has … Read more.
Alden F. Abbott and Andrew Mercado
The Federal Trade Commission (FTC) on Dec. 2 filed an administrative complaint to block the vertical merger between Nvidia Corp., a graphics chip supplier, and Arm Ltd., a computing-processor designer. The press release accompanying the complaint stresses the allegation that “the combined firm would have the means and incentive to stifle innovative next-generation technologies, including... Read more.
Lazar Radic
The Autorità Garante della Concorenza e del Mercato (AGCM), Italy’s competition and consumer-protection watchdog, on Nov. 25 handed down fines against Google and Apple of €10 million each—the maximum penalty contemplated by the law—for alleged unfair commercial practices. Ultimately, the two decisions stand as textbook examples of why regulators should, wherever possible, strongly defer to... Read more.
Christian Bergqvist
After deliberating on the matter for a year, DG COMP on the 9th of December published its draft guidance on the application of Article 101 on collective bargaining of the self-employed. This is done in response to the rise and proliferation of the online economy, centred specifically on platforms and greater reliance on freelancers and... Read more.
Pablo Ibanez Colomo
Advocate General Rantos’s Opinion Case C-377/20, Servizio Elettrico Nazionale, was published yesterday (see here for the French version). It is notable for two reasons. First, it effectively captures the essence of the case law following the contributions made by the Court from Post Danmark I to Generics. Second, it creates a framework that brings together all the pieces in a way that completes the picture and addresses some misunderstandings. Read more.
Martin Cave
Traditional investor-owned network industries in communications, energy, transport and water have been regulated for more than a century. It is therefore timely to ask if this experience has any lessons for digital platforms. One key issue is whether standard competition law suffices in either case. The answer for traditional networks is a resounding no, and the conclusion is gaining ground that sector-specific regulation, with its more interventionist traditions and specialist delivery, is required for the largest digital platforms too. Read more.
MICHAEL L. KATZ
Economics has a valuable role to play in antitrust enforcement, but the courts often base their antitrust decisions on unfounded empirical claims or the misapplication and misinterpretation of economics. Michael Katz proposes ways to improve courts’ use of economics. Beginning in the 1970s, economics has played an increasingly large and explicit role in US antitrust... Read more.
  • Uses German manufacturing firm-product data to study the fall of labor's share
  • Rising market power explains half of the fall in labor's share
  • The remaining half is explained by a declining labor output elasticity
  • Firms’ labor market power is much higher than firms’ product market power
  • Rising firm labor market power drives the rise in firms’ market power
Hiba Hafiz
This Article is the first to focus on how firm breakups—and antitrust enforcement and remedial design more generally—can and have significantly impacted workers’ countervailing power and earning potential. Firm structure matters for worker power. Dismantling dominant firms can result in more firms competing for workers’ services, which can lift their wages. But it can also dismantle structures of worker power that have arisen to successfully counter dominant employers. Read more.
Brent D. Fulton, Jaime S. King, Daniel R. Arnold, Alexandra D. Montague, Samuel M. Chang,,Thomas L. Greaney, and Richard M. Scheffler
States can challenge proposed hospital mergers by using antitrust laws to prevent anticompetitive harms. During the period 2010–19, 862 hospital mergers were proposed, but only forty-two (4.9 percent) were challenged by states, including thirty-five by states without federal involvement, of which twenty-five (71.4 percent) originated in the eight states with the most robust merger review authority. The twenty-five challenges resulted in two mergers being blocked; three being abandoned; and twenty being approved with conditions, including seven with competitive-impact conditions. Read more.
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Kind regards, Valur Þráinsson, Founder of CompetitionFeed.com. Email: valur@competitionfeed.com
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