Nicolas Petit ‘Are “FANGs” Monopolies? A Theory of Competition under Uncertainty’ (working paper)

This paper, available here, builds on draft sections of a forthcoming book on tech giants and public policy. It lays down the rudiments of a descriptive theory of competition among the digital tech platforms known as “FANGs” (Facebook, Amazon, Netflix and Google). The paper begins by addressing the debate over whether FANGs are monopolies. One school argues that they are indeed monopolies, reflecting FANG’s control of a large share of output in relevant product(s) or service market(s), high barriers to entry, lateral integration and strong network effects. Some of these works also discuss (novel) theories of harm such as reductions in privacy, labour market monopsony and distortions of the democratic process. A different current argues that traditional monopoly harms are not manifest in FANGs. To the contrary, FANGs would outperform textbook monopolies by observable metrics of prices, output, labour or innovation. In addition, the tech industry is arguably rife with examples of once dominant later irrelevant companies like AOL, MySpace or…

Gregory Werden and Luke Froeb  ‘Antitrust and Tech: Europe and the United States Differ, and it matters’ (working paper)

While merger and cartel enforcement lead to similar outcomes on both sides of the pond, there are significant differences regarding “abuse of dominance” and “monopolisation”. The European Commission and some national competition authorities in Europe have taken on tech giants in high-profile cases. However, hard-wired differences between the European and American enforcement regimes make very difficult for the US antitrust enforcement agencies to emulate their European counterparts. This piece, available here, seeks to identify these differences. A first set of differences relates to how an administrative model prevails in Europe, while the US system is mostly accusatorial. The European system was conceived of as regulation enforced by an administrative agency, not as law enforcement by the courts as in the US.  One important distinction in this respect is that a contested court order in the United States typically contains a series of conduct mandates and prohibitions, while administrative decisions usually merely provide for cease-and-desist orders. Furthermore, the European system is driven by…