Critical Loss: Not Implementing the Hypothetical Monopolist Test!

This article is part of a Chronicle. See more from this Chronicle Gregory Werden, Apr 10, 2008 I recently argued in this magazine that a style of critical loss calculation I termed “CLAD” (Critical Loss Analysis by Defendants) does not properly implement the hypothetical monopolist test (HMT) for market delineation and is often highly misleading. […]

Comments on the European Commission’s MasterCard Decision

This article is part of a Chronicle. See more from this Chronicle Michael Katz, Apr 03, 2008 n December 2007, the European Commission issued its decision with respect to MasterCard’s policy of setting default values for Intra-EEA and Single Euro Payments Area (SEPA) interchange fees, which apply in the absence of bilateral agreements between issuers […]

Competition Policy in Mexico

This article is part of a Chronicle. See more from this Chronicle Ernesto Estrada Gonzalez, Apr 03, 2008 Note to readers: GCP Authorities is a new collection that will be appearing in the magazine throughout the year and will feature articles by competition authority officials worldwide on their agency’s approach to competition law and objectives […]

Enter the White Paper for Damages Actions: A First Selective Appraisal

This article is part of a Chronicle. See more from this Chronicle Assimakis Komninos, Apr 03, 2008 On April 3, 2008, the European Commission published its long-awaited White Paper on Damages actions for breach of the EC antitrust rules (WP). The WP itself is a rather short document that summarizes the far more developed Staff […]

The European Commission’s Decision in MasterCard: Issues Facing the Payment Card Industry for the Future

This article is part of a Chronicle. See more from this Chronicle John Wotton, Apr 02, 2008 The Decision in MasterCard displays a fundamental divergence between the Commission’s and MasterCard’s approaches to the analysis of the competitive effects of open payment card schemes. MasterCard’s position is that MasterCard, together with its acquirers and issuers, provide […]

Critical Loss: Implementing the Hypothetical Monopolist Test

This article is part of a Chronicle. See more from this Chronicle Malcolm Coate, Jeffrey Fischer, Apr 01, 2008 This comment responds to two recent papers on critical loss in this magazine. The first, by Gregory J. Werden, cautions against the standard application of CL analysis. The second, by Kevin Murphy and Robert Topel, concludes […]

The European Commission’s Ruling in MasterCard: A Wise Decision?

This article is part of a Chronicle. See more from this Chronicle Wilko Bolt, Apr 01, 2008 Payment pricing and competitive efficiency have recently attracted a lot controversy. This has led to some spectacular antitrust litigation in the United States, Australia and now Europe. Ultimately, the central issue concerns whether the specific circumstances of payment […]

Crackdown on Cartels Highlights the Need for Competition Law Compliance in South Africa

This article is part of a Chronicle. See more from this Chronicle Heather Irvine, Mar 27, 2008 The South African Competition Commission intensified its efforts to combat cartel activity in 2007, and a number of cases involving price-fixing and market division in key sectors of the South African economy were referred to the Competition Tribunal […]

The Drama of Interchange Fees

This article is part of a Chronicle. See more from this Chronicle Vitor Bento, Mar 31, 2008 The main problem with the economics of card payments is that cash is used as its yardstick and cash payments, being the most socially inefficient means of payment, are made available at a price significantly below cost (often […]

AMD v. Intel: An Assault on Price Competition

This article is part of a Chronicle. See more from this Chronicle Robert Cooper, Mar 17, 2008 Under U.S. antitrust laws, above-cost price competition is sacrosanct. Accepting the notion that aggressively discounting prices, even though the discounted prices exceed cost, might expose a company to a possible violation of the antitrust laws would turn the […]