Lucid, highly readable, and full of rich social and political implications, “The Antitrust Paradox” illustrates how the purpose and integrity of law can be subverted. Winter Robert Bork, The Antitrust Paradox: A Policy at. War with Itself. Paul H. Brietzke. This Book Review is brought to you for free and open access by the. Jan 3, In his highly influential work, The Antitrust Paradox, Robert Bork asserted that the sole normative objective of antitrust should be to maximize.

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B, this idea contravenes legislative history, which shows that Congress passed antitrust laws to safeguard against excessive concentrations of private power. Leonard, supra note antitrist In theory, online retailing itself has low entry costs since anyone can set up shop online, without significant fixed costs. In Brooke Group Ltd. Interests of consumers have been a recurrent concern because consumers have been perceived as victims of the pxradox of too much power.

Amazon is the titan of twenty-first century commerce. Tech Trader Daily June 16, See Grace NotoJet. Expansion into Multiple Business Lines. Law Offices of Curtis V. Whereas brick-and-mortar stores are generally only able to collect information on actual sales, Amazon tracks what shoppers are searching for but cannot find, as well as which products they repeatedly return to, what they keep in their shopping basket, and what their mouse hovers over on the screen.

But the consumer welfare approach to antitrust is unduly narrow and betrays congressional intent, as evident from legislative history and as documented by a vast body of scholarship. Acquisition of Quidsi and Flawed Assumptions About Entry and Exit Barriers In addition to using below-cost pricing to establish a dominant position in e-books, Amazon has also used this practice to put pressure on and ultimately acquire a chief rival.


For accounts of how some retailers have successfully implemented discriminatory pricing online, see supra note and accompanying text.

Amazon’s Antitrust Paradox

Rate setting would be trickier. An approach more attuned to the realities of online platform markets antitruet also recognize the variety of mechanisms that businesses may use to recoup losses, the longer time horizon on which recoupment might occur, and the ways that vertical integration and concentrated control over data may enable new forms of anticompetitive conduct.

When seeking to block vertical combinations or arrangements, the government frequently built its case on one of these theories—and, through the s, courts largely accepted them. The deal raised a host of red flags, such as the elimination of a major birk in a competitive category, according to an FTC official familiar with the review.

Other frozen pie manufacturers, including Continental, began selling at below-cost prices in the Salt Lake City market, while keeping prices in other regions at or above cost. This basis for distinguishing legitimate from illegitimate price-cutting echoed other decision….

Investors have granted the company much wider leeway to do so than other technology companies of its size often receive, because of its history of delivering outsize growth. For example, when renewing its contract with Hachette last year, Amazon demanded payments pafadox services including the pre-order button, personalized recommendations, and an Amazon employee assigned to the publisher. But in several key ways, Amazon has achieved its position through deeply cutting prices and investing heavily in growing its operations—both at the expense of profits.


Analysis of vertical integration has similarly moved away from structural concerns.

Omarovasupra noteat This gives the company a key advantage over its rivals: Given that online platforms operate in markets where network effects and control over data solidify early dominance, a company looking to compete in these markets must seek to capture them.

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While not captured by current antitrust doctrine, the pressure Amazon puts on publishers merits concern. In interviews with reporters, venture capitalists say there is no appetite to fund firms looking to compete with Amazon on physical delivery.

Antitrust Paradox – Robert H. Bork – Google Books

Hearing Before the Subcomm. Since popularity compounds and is reinforcing, markets with network effects often tip towards oligopoly or monopoly. Antitrust supra noteat It is not clear how we would measure price hikes for the purpose of recoupment analysis in that scenario.

Baer, supra note Antitrust doctrine has evolved to reflect this redefinition. Net neutrality is a form of common carrier regime. Importantly, each of these doctrinal areas should be reformulated so that it is sensitive to preserving the competitive process and limiting conflicts of interest that may incentivize anticompetitive conduct.

But recent reporting does suggest that Amazon manipulates how it presents pricing in order to favor its own products.

Per Se Illegality, the Rule of Rea….