Strategic Uses of
Antitrust Laws
Table of contents
Introduction
Theory & method
THE INNOVATION PROCESS FACING THE
STRATEGIC USES OF ANTITRUST LAWS
About the theory
About the method
Advancement
PILLOT Julien
Problems
University of Nice Sophia-Antipolis
GREDEG UMR 6227 CNRS – I2C
European School of New Institutional Economics
2008 – May, 19-23 2008
Strategic Uses of
Antitrust Laws
Table of contents
Table of contents
 Introduction : Research fields and motivations
Introduction
Theory & method
About the theory
About the method
 Theory & Method
• Strategic use of the European antitrust laws
• Methodology
Advancement
Problems
 State of advancement of my project
 Main problems to be overcome
Strategic Uses of
Antitrust Laws
Table of contents
Introduction
Theory & method
INTRODUCTION
Topic: the innovation process facing the strategic uses of
antitrust laws
Fields of research: Law Economics, Innovation, Competition…
About the theory
Motivations:
About the method
 An interdisciplinary project
Advancement
Problems
A doctrine already developed in the United States…
(BAUMOL W.J. & ORDOVER J. A. (1985): “Use of Antitrust to Subvert
Competition”. Journal of Law & Economics n°28, pp. 247 ; MCAFEE
R.P. & VAKKUR N.V. (2005): “The Strategic Abuse of Antitrust Laws”.
Journal of Strategic Management Education, Vol.1, n°2, article 4 ;
MCAFEE R.P., MIALON S. & MIALON H. (2008): “Private v. Public
Antitrust Enforcement: A Strategic Analysis”. Journal of Public
Economics, Forthcoming).
… but need to be adapted to the European Union
Strategic Uses of
Antitrust Laws
Theory & Methodology (1/2)
Table of contents
A major stake: Promoting and preserving the innovation
process
Introduction
Competition policies: Antitrust laws & IP laws
Theory & method
2 Problems:  information asymmetries
 about the technology frontier
About the theory
About the method
Advancement
Problems
Theory: Competitive firms can take advantage of the
uncertainty of the legal framework to subvert competition
A greater legal uncertainty in the UE than in the US
 Prevalence of antitrust laws on IP laws
 Essential facilities theory applied to intangibles assets
(Magill, IMS)
 Two potential cases of strategic uses of the EU antitrust
laws : VirginMega vs. Apple (2004) ; MLP vs. NMPP (2007)
Back to the theory: What about the Economic Growth if a
prevalence of antitrust laws on IP laws leads to a decrease of
efficient investments?
Strategic Uses of
Antitrust Laws
Theory & Methodology (2/2)
A methodology in four steps:
Table of contents
1) Making a survey of the literature
Introduction
Theory & method
About the theory
About the method
2) Using the game theory framework in order to
explain the legal conflicts resolution
 signalling & screening models
 Time as a cost
Advancement
Problems
3) Carrying out an econometric study in order to set out
some stylized facts (key factors, success rate,
frequency…)
 ICT sector-based study
 Underline the conditions of an efficient coordination
between horizontal and vertical authorities
4) Analyzing a French economic case of a potential
strategic use of antitrust laws: MLP vs. NMPP
Strategic Uses of
Antitrust Laws
State of advancement of the project
Making a survey of the literature
In progress
Table of contents
Introduction
Using the game theory framework in order to
the legal conflicts resolution X
explain
Theory & Method
About the theory
About the method
Advancement
Problems
Carrying out an econometric study in order to set out
some stylized facts (key factors, success rate,
frequency…)
X
Analyzing a French economic case of a potential
strategic use of antitrust laws: MLP vs. NMPP √
 Pillot J. (2008): “Théorie des facilités essentielles et utilisation
stratégique du droit de la concurrence : le cas du secteur de la
diffusion de la presse en France”. First draft, submitted to the
AFSE.
Strategic Uses of
Antitrust Laws
Main problems to be overcome
 Acquiring multidisciplinary competences
Table of contents
Introduction
Theory & model
About the theory
About the model
Advancement
Problems
 Difficulties to make a sound database
Strategic Uses of
Antitrust Laws
Table of contents
Introduction
Theory & Method
Thanks
About the theory
About the Method
Advancement
PILLOT Julien
Problems
[email protected]
http://hp.gredeg.cnrs.fr/pillot/
ESNIE 2008