Page 18 - South China Business Journal
P. 18
C. TODAY
Unlocking Antitrust:
3 Reasons Why Simplicity is Antitrust’s
Greatest Strength
By SEAN HEATHER
U. S. Chamber of Commerce
In recent years, politicians and activists have called pollution is an externality in the market, hence we
to both change the antitrust laws and increase have environmental statutes to guard against it.
enforcement. The push is intended to attack the Consumer protection against fraudulent marketing
largest companies in every industry, simply because is another example of an externality that is again
they are large, and impose specialized regulatory- best addressed by laws other than antitrust.
like burdens through antitrust enforcement. Similarly, antitrust laws have important and
Some of these changes however would upend necessary limits to their power as well. The law
antitrust’s simple yet effective approach only narrowly examines how conduct in the market
to serve to undermine its importance. Here are impacts price, output, and innovation. All of
the three reasons why the simplicity of existing these are important to the economic well-being
antitrust laws are also the laws' greatest strength: of consumers. This is often referred to as the
1. Antitrust laws have near universal “consumer welfare standard” — a limited approach
application that focuses on consumer harm in an economic
Antitrust laws apply to all actors in the market sense and prevents antitrust from drifting into a
regardless of size or sector, only in a handful of larger role that is left to regulation.
instances has Congress written in exemptions. Today, consumers are empowered to make decisions
Efforts to move away from such universal that shape the market, whereas regulations
application would result in a law that no longer shape the market based on government-directed
asks all economic actors to compete. And efforts outcomes. Unfortunately, plans to void this well-
to consider special antitrust rules that would only reasoned limiting principle would turn the law
apply to certain sectors or to certain sized companies into a morass of complaints from competitors
would destroy the idea that our antitrust laws alleging unfairness divorced from genuine harm to
should have universal application to all economic consumers. Asking enforcers or courts to enforce
actors. Finally, because the laws are universal, such an open-ended standard would lead to highly
proposed changes must be carefully weighed as subjective enforcement infused with political bias.
they will impact the entire economy. 3. Antitrust laws invites all arguments
2. Antitrust laws have necessary and When it comes to conduct in the market, no conduct
important limits is safe from potential antitrust scrutiny. While
No law or statute is open ended or designed to antitrust cases brought by federal antitrust agencies
accomplish varied policy objectives. All laws get the most attention, the overwhelming majority
therefore must have limits. In the case of antitrust of cases are brought as private legal actions. Anyone
laws, not every externality that arises in the has the legal authority to bring forth an antitrust
market is for antitrust to address. For example, complaint and argue that the law is being violated.
No one need wait for the federal agencies to act.
15 AMCHAM SOUTH CHINA
Unlocking Antitrust:
3 Reasons Why Simplicity is Antitrust’s
Greatest Strength
By SEAN HEATHER
U. S. Chamber of Commerce
In recent years, politicians and activists have called pollution is an externality in the market, hence we
to both change the antitrust laws and increase have environmental statutes to guard against it.
enforcement. The push is intended to attack the Consumer protection against fraudulent marketing
largest companies in every industry, simply because is another example of an externality that is again
they are large, and impose specialized regulatory- best addressed by laws other than antitrust.
like burdens through antitrust enforcement. Similarly, antitrust laws have important and
Some of these changes however would upend necessary limits to their power as well. The law
antitrust’s simple yet effective approach only narrowly examines how conduct in the market
to serve to undermine its importance. Here are impacts price, output, and innovation. All of
the three reasons why the simplicity of existing these are important to the economic well-being
antitrust laws are also the laws' greatest strength: of consumers. This is often referred to as the
1. Antitrust laws have near universal “consumer welfare standard” — a limited approach
application that focuses on consumer harm in an economic
Antitrust laws apply to all actors in the market sense and prevents antitrust from drifting into a
regardless of size or sector, only in a handful of larger role that is left to regulation.
instances has Congress written in exemptions. Today, consumers are empowered to make decisions
Efforts to move away from such universal that shape the market, whereas regulations
application would result in a law that no longer shape the market based on government-directed
asks all economic actors to compete. And efforts outcomes. Unfortunately, plans to void this well-
to consider special antitrust rules that would only reasoned limiting principle would turn the law
apply to certain sectors or to certain sized companies into a morass of complaints from competitors
would destroy the idea that our antitrust laws alleging unfairness divorced from genuine harm to
should have universal application to all economic consumers. Asking enforcers or courts to enforce
actors. Finally, because the laws are universal, such an open-ended standard would lead to highly
proposed changes must be carefully weighed as subjective enforcement infused with political bias.
they will impact the entire economy. 3. Antitrust laws invites all arguments
2. Antitrust laws have necessary and When it comes to conduct in the market, no conduct
important limits is safe from potential antitrust scrutiny. While
No law or statute is open ended or designed to antitrust cases brought by federal antitrust agencies
accomplish varied policy objectives. All laws get the most attention, the overwhelming majority
therefore must have limits. In the case of antitrust of cases are brought as private legal actions. Anyone
laws, not every externality that arises in the has the legal authority to bring forth an antitrust
market is for antitrust to address. For example, complaint and argue that the law is being violated.
No one need wait for the federal agencies to act.
15 AMCHAM SOUTH CHINA
