Buyer Power In The Big Data And Algorithm Driven World: The Uber & Lyft Example

Buyer Power In The Big Data And Algorithm Driven World: The Uber & Lyft Example

By Ignacio Herrera Anchustegui & Julian Nowag –  This article explores how big data and algorithms may create new possibilities for unilateral anticompetitive behavior in the form of overbuying and “reverse rebates,” using as a case study the recent proceedings against Uber concerning its “Hell” program. The analysis provides us with the opportunity to re-explore […]

Antitrust Chronicle – Index Funds – A New Antitrust Frontier?

Antitrust Chronicle – Index Funds – A New Antitrust Frontier?

A new wave of economic and legal research suggests that common ownership by large institutional investors leads to potential anticompetitive effects. Other scholars and practitioners argue that there is no there… there. In a recent interview, Vanguard founder John Bogle responded to possible antitrust concerns created by index funds in part by saying “People are […]

Institutional Investment, Common Ownership and Antitrust

Institutional Investment, Common Ownership and Antitrust

By Xavier Vives – The growth of institutional investment has been formidable. This rise of diversified institutional investment has raised antitrust concerns, mostly in the U.S. One reason is that the proportion of U.S. public firms in the hands of institutional investors, which at the same time hold large blocks of other firms in the same industry, […]

Why Common Ownership Causes Antitrust Risks

Why Common Ownership Causes Antitrust Risks

By José Azar, Martin Schmalz & Isabel Tecu – This article illustrates the extent of present-day common ownership and discusses the economic logic of why common ownership leads to reduced incentives to compete and may cause anticompetitive outcomes. The authors then review some of the empirical evidence to date, discuss critiques of the same and […]

Active and Passive Institutional Investors and New Antitrust Challenges: Is EU Competition Law Ready?

Active and Passive Institutional Investors and New Antitrust Challenges: Is EU Competition Law Ready?

By Marco Claudio Corradi & Anna Tzanaki – This essay aims to disentangle the complex issues surrounding common ownership by institutional investors, and suggest a holistic approach that brings together the corporate with the competition law aspects of the problem. Accordingly, the analysis first sheds light on the corporate governance dimensions. Next, it outlines the theories […]

Can Institutional Investors Soften Downstream Product Market Competition?

Can Institutional Investors Soften Downstream Product Market Competition?

By John R. Woodbury – The recent findings of leading antitrust authors are certainly intriguing and have spawned a debate on the competitive significance of the actions of institutional investors. There should be little doubt that further research should be pursued by these and other researchers to validate (or not) the anticompetitive effect and the […]

The Growing Problem of Horizontal Shareholding

The Growing Problem of Horizontal Shareholding

By Einer Elhauge – Horizontal competitors increasingly have the same leading shareholders, bringing on the potential for anticompetitive effects. Those effects could help explain economic puzzles like the use of inefficient methods of executive compensation and the growing gap between corporate profits and investment. Recently, the evidence has gotten even stronger, showing that horizontal shareholding has continued […]

The New Mandate Owners: Passive Asset Managers and The Decoupling of Corporate Ownership

The New Mandate Owners: Passive Asset Managers and The Decoupling of Corporate Ownership

By Carmel Shenkar, Eelke M. Heemskerk & Jan Fichtner – A major shift toward passively managed index funds in recent years has led to the re-concentration of corporate ownership in the hands of just three large asset management firms, the Big Three: BlackRock, Vanguard and State Street. We propose that this trend has restructured ownership […]

Private Equity and EU Merger Control – Select Issues

Private Equity and EU Merger Control – Select Issues

By Luca Crocco, Tomas Nilsson & Stella Sarma – Private equity plays an important role in all developed economies and has been a significant driver of the latest “merger waves.” This article gives a concise overview of two sets of recurring issues in the merger control practice of the European Commission involving private equity deals: […]