Rethinking Antitrust

#4: Vertical Mergers

Episode Summary

In June 2020, the Trump administration released the first joint FTC-DOJ vertical merger guidelines. These guidelines, which drew heavily on the input of agency staff, were prepared as an outgrowth of the FTC's Competition and Consumer protection hearings initiated by then FTC chairman Joe Simons. While the 2020 VMGs received praise from some, others argued the VMGs failed to articulate certain theories of harm, suggesting a pro-defendant bias. In July of this year, the agencies proposed a revised set of merger guidelines, including theories of non-horizontal competitive harm; the draft was met with considerable skepticism, with many suggesting the draft ignores advances in economic learning over the past four-decades, and that the draft relied on case law without a strong foundation in the economics of vertical integration. Steve Salop and Jeremy Sandford join Bilal Sayyed for a discussion of the guidelines on vertical and non-horizontal theories of harm.

Episode Notes

Steven Salop bio page

Jeremy Sanford bio page

Jeremy Sanford: Comments on the 2023 proposed draft merger guidelines

Steve Salop: A Suggested Revision of the 2020 Vertical Merger Guidelines

Steve Salop: Some Comments For Improving the 2023 Draft Merger Guidelines

Steven Salop: Revising Guideline 6 With Evidence to Establish a Structural Inference for Input Foreclosure

Steven Salop: Five Principles for Vertical Merger Enforcement Policy

2020 Vertical Merger Guidelines

2020 Commentary on Vertical Merger Enforcement

2023 Proposed Draft Merger Guidelines

TechFreedom: Comment on the 2023 proposed draft merger guidelines