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Merger Antitrust Law (2018)

Dale Collins
NYU School of Law
Georgetown University Law Center

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    I

 

This page contains the memorandum introducing the course, class schedule, reading materials, and class notes for the Merger Antitrust Law course taught during the 2018 fall semester at Georgetown. It also contains links to related supplemental materials on the Applied Antitrust web site. There is no textbook for this course. Everything you need will be linked to this page.

Memorandum introducing the course

Class schedule 3.0 (revised November 2, 2018)

 
 
Required Reading
Comments and Optional Reading

Unit 1

Introduction to Merger Antitrust Law: Substance and Process

 

Class 1

Tuesday, August 28

Introduction to merger antitrust law
TransDigm/Takata

 

Memorandum introducing the course

Class schedule

Class 1 reading guidance

Unit 1 reading materials

Merger Antitrust Law: Introduction to Substance and Process (class notes)

Class 1 homework assignment

Instructor's answer

Hornbooks and Other Antitrust Study Aids

Unit 2

Predicting Merger Antitrust Enforcement Challenges

 

Class 2

Thursday, August 30

Predicting merger antitrust enforcement challenges
DOJ/FTC 2010 Horizontal Merger Guidelines

Class 2 reading guidance

Unit 2 reading materials

Predicting Merger Antitrust Enforcement Challenges (class notes)

Class 2 homework assignment

Instructor's answer

Class 2 slides (as used in class)

Unit 3

Presumptions and Merger Guidelines 

For additional supplemental materials, see 9. Introduction to Mergers: Statutes and Merger Guidelines in AppliedAntitrust.com

Class 3

Tuesday, September 4

Presumptions and Guidelines

Optional case study: Albertsons/Safeway

Class 3 reading guidance

Unit 3 reading materials

Presumptions and Merger Guidelines (class notes)

There is no homework assignment for this class (but there is one for the instructor that you should review)

Class 3 instructor's assignment

Instructor's answer

Class 3 slides (as used in class)

The Seminal Cases of the 1960s

  The common law approach to antitrust law 1
  United States v. E.I. du Pont de Nemours & Co. (1957) 4
  Brown Shoe Co. v. United States (1962 12
  United States v. Philadelphia National Bank (1963) 28
  United States v. Aluminum Co. of America (Rome Cable) (1964) 33
  United States v. Von’s Grocery Co. (1966) 36
  United States v. Pabst Brewing Co. (1966) 40
  United States v. General Dynamics Corp. (1974) 44

Merger Guidelines

U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (rev. Aug. 19, 2010)

U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (Apr. 8, 1997)

U.S. Dep't of Justice, Merger Guidelines (June 14, 1984) (published at 49 Fed. Reg. 26,823)

U.S. Dep't of Justice, Merger Guidelines (June 14, 1982) (published at 47 Fed. Reg. 28,493)

Fed. Trade Comm'n, Statement Concerning Horizontal Merger Guidelines (June 14, 1982)

U.S. Dep't of Justice, Merger Guidelines (May 30, 1968)

Note: The 1968, 1982, 1984 (except for Section 4), 1992, and 1997 Merger Guidelines have been superseded by the 2010 Merger Guidelines. Section 4 of the 1984 Merger Guidelines, which addresses nonhorizontal mergers, remains technically in effect.

Unit 4

The DOJ/FTC Merger Review Process

For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com

Class 4

Thursday, September 6

Finish Unit 3 on presumptions and merger guidelines

Begin Unit 4 on DOJ/FTC merger investigations

Case study: Albertsons/Safeway

Class 4 reading guidance (revised Sept. 5, 2018)

Unit 4 reading materials

The DOJ/FTC Merger Review Process (class notes) (revised Sept. 20, 2018)

See Review slides: HSR Reportability (revised Sept. 20, 2018)

Class 4 homework assignment

Instructor's answer

Class 4 slides (as used in class)

DOJ Model Second Request (Nov. 28, 2016)

FTC Model Second Request (August 2015)

Makan Delrahim, It Takes Two:Modernizing the Merger Review Process, Prepared Remarks Before the 2018 Global Antitrust Enforcement Symposium, Washington, DC (Sept. 25, 2018)

 

Class 5

Tuesday, September 11

DOJ/FTC merger investigations

Case study: Walgreens/Rite-Aid (postponed)

Class 5 reading guidance (revised September 6, 2018)

Unit 4 reading materials

FTC model timing agreement (Aug. 7, 2018) (FTC blog post)

The DOJ/FTC Merger Review Process (class notes) (revised Sept. 20, 2018)

See Review slides: HSR Reportability (revised Sept. 20, 2018)

Class 5 homework assignment

Class 4 slides (as used in class)

Unit 5

Merger Antitrust Litigation

For additional supplemental materials, see 14. Merger Antitrust Litigation in AppliedAntitrust.com

Class 6

Thursday, September 13

Class 6 reading guidance

Unit 5 reading materials

Merger Antitrust Litigation (class notes)

Class 6 homework assignment

Class 6 slides (as used in class)

 

Unit 6

Settlements

 

For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com

Class 7

Tuesday, September 18

Settlements

Albertsons/Safeway (FTC settlement)

Disney/Fox (DOJ settlement)

Class 7 reading guidance

Unit 6 reading materials

Merger Antitrust Settlements (2018 class notes)

I have started a major revision of the class notes for this unit. You do not need to look at it, but if you are interested you can find it here

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Class 7 slides (as used in class)

Fed. Trade Comm'n, Bureaus of Competition & Economics, The FTC’s Merger Remedies 2006-2012 (Jan. 2017) (the "2017 FTC Merger Remedies Report")

Dan Ducore & Naomi Licker, Bureau of Competition, Fed. Trade Comm'n, Looking Back (Again) at FTC Merger Remedies (Feb. 3, 2017) (FTC blog post on the 2017 FTC Merger Remedies Report)

Deborah L. Feinstein, Dir., Bureau of Competition, Fed. Trade Comm'n, The Significance of Consent Orders in the Federal Trade Commission’s Competition Enforcement Efforts, Remarks Before GCR Live, New York, NY (Sept. 17, 2013)

Jonathan M. Jacobson, Issues in Antitrust Consent Decrees, Presented to the Department of Justice Antitrust Division (Apr. 26, 2018)

 

Optional review session

Wednesday, September 19

Review topics

Review slides: HSR Reportability (revised Sept. 20, 2018)

NB: This session was videorecorded and may be views through the Panopto link on Canvas course site

Unit 7

Hertz/Avis Budget/Dollar Thrifty

For a more complete collection of primary sources and commentary on the Hertz/Avis Budget/Dollar Thrifty machinations than in the reading materials, including press releases, investor presentations, SEC filings, background information, and commentary, click here.

Class 8

Thursday, September 20

The 2010 Hertz/Dollar Thrifty deal

Class 8 reading guidance

Unit 7 reading materials

There are no class notes for this class

Class 8 homework assignment

Class 8 slides (as used in class)

Class 9

Tuesday, September 25

Antitrust considerations and the merger agreement

Class 9 reading guidance

Unit 7 reading materials

Allocating Antitrust Risk in Merger Agreements (class notes)

Class 9 homework assignment

Class 9-10 slides (as used in class) (slightly revised September 27, 2018)

For a collection of antitrust-related provisions appearing in merger agreements, see Dale Collins, Sample Antitrust-Related Provisions in M&A Agreements, AntitrustUnpacked.com (July 2, 2018)

Class 10

Thursday, September 27

The merger agreement (con’t)

The bidding war

FTC review and settlement

The aftermath

Class 10 reading guidance

Unit 7 reading materials

Review Allocating Antitrust Risk in Merger Agreements (class notes) as necessary

There are no additional class notes for this class

Class 10 homework assignment

Class 9-10 slides (as used in class) (slightly revised September 27, 2018)

Unit 8

Competition Economics

Class 11

Tuesday, October 3

Basic concepts

Class 11 reading guidance

Basic Competition Economics (class notes for Class 11)

There are no reading materials for this class

Class 11 homework assignment

Instructor's answer

Class 11 slides (if we had used slides in class)

A Marginal Revenue Problem Step-by-Step (by Step)

A Profit-Maximization Problem Step-by-Step (by Step)

Dennis W. Carlton & Jeffrey M. Perloff, Modern Industrial Organization (4th ed. 2005).

See also Dave Berry, Up in the Air on the Question of Gravity, Baltimore Sun, Mar. 16, 1997, at 3J

Class 12

Thursday, October 9

Basic concepts

Class 12 reading guidance

Basic Competition Economics (class notes for Class 12)

There are no reading materials for this class

Class 12 homework assignment

Class 12 slides (as used in class)

Unit 9

H&R Block/TaxACT

NO CLASS

Tuesday, October 9

LEGISLATIVE MONDAY

 

NO CLASS

Thursday, October 11

 

MAKE-UP CLASS ON WEDNESDAY, OCTOBER 24

 

Class 13

Tuesday, October 16

Analysis of district court opinion

Class 13 reading guidance

Unit 9 reading materials

DOJ/FTC Horizontal Merger Guidelines § 4 (market definition)

Market Definition 1 (Class 13 class notes)

Class 13 homework assignment

Generally

1 ABA Section of Antitrust Law, Antitrust Law Developments ch. 6 (8th ed. 2017) (market definition). This is the best complication of the current law on market definition. It is the first source to which you should turn if you have questions about how the courts apply the law.

± Jonathan B. Baker, Market Definition: An Analytical Overview, 74 Antitrust L.J. 129 (2007).

± Jonathan B. Baker & Timothy F. Bresnahan, Economic Evidence in Antitrust: Defining Markets and Measuring Market Power (Stanford Law and Economics Olin Working Paper No. 328 Sept. 2006), final version published in Handbook of Antitrust Economics 1 (Paolo Buccirossi ed., 2008).

H&R Block/TaxACT commentary

Marc Remer & Frederick R. Warren-Boulton, United States v. H&R Block: Market Definition in Court since the 2010 Merger Guidelines, 59 Antitrust Bull. 599 (2014).

± Malcolm B. Coate, Market Definition in Differentiated Goods When the Final Consumer Buys the Good: Insights from the H&R Block Case (Feb. 12, 2014).

± Joseph J. Simons & Malcolm B. Coate, Should DOJ’s Controversial Approach to Market Definition Control Merger Litigation, the Case of US v. H&R Block (Oct. 24, 2013).

± James A. Keyte, United States v. H&R Block: The DOJ Invokes Brown Shoe to Shed the Oracle Albatross, Antitrust, Spring 2012, at 32.

± Deborah Feinstein, The Significance of H&R Block: Brown Shoe Meets Merger Simulation, Antitrust, Spring 2012, at 5.

See generally AppliedAntitrust.com, Market Definition

REVIEW

Wednesday, October 17 (McD 110)

Competition Economics

OPTIONAL REVIEW SESSION

Review slides (revised October 18, 2018)

 

Class 14

Thursday, October 18

Analysis of district court opinion

Class 14 reading guidance

Unit 9 reading materials

DOJ/FTC Horizontal Merger Guidelines § 4 (market definition)

Market Definition 2 (Class 14 class notes)

Class 14 homework assignment

Class 14-17 slides (revised on October 25)

1 ABA Section of Antitrust Law, Antitrust Law Developments ch. 6 (8th ed. 2017) (market definition).

± Oxera, "Could" or "Would"? The difference between Two Hypothetical Monopolists (Nov. 2008).

± Daniel P. O’Brien & Abraham L. Wickelgren, A Critical Analysis of Critical Loss Analysis (May 23, 2003)

± Michael Katz & Carl Shapiro, Further Thoughts on Critical Loss, Antitrust Source, Mar. 2004.

± Steven C. Salop, Serge Moresi & John R. Woodbury, Market Definition (2017)

Gregory Werden, Demand Elasticities in Antitrust Analysis, 66 Antitrust L.J. 410 (1998)

See generally AppliedAntitrust.com, Market Definition

Class 15

Tuesday, October 23

Analysis of district court opinion

Class 15 reading guidance

Unit 9 reading materials

DOJ/FTC Horizontal Merger Guidelines § 5 (Market Participants, Market Shares, and Market Concentration)

DOJ/FTC Horizontal Merger Guidelines § 9 (Entry)

Anticompetitive Effect in Horizontal Mergers (Class 15 class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

 

Class 14-17 slides (revised on October 25)

1 ABA Section of Antitrust Law, Antitrust Law Developments 361-69 ch. 6 (8th ed. 2017) (identifying market participants; determining market share and concentration).

1 ABA Section of Antitrust Law, Antitrust Law Developments 369-72 (8th ed. 2017) (coordinated effects).

Janusz A. Ordover, Coordinated Effects, in 2 Issues In Competition Law and Policy 1359 (ABA Section of Antitrust Law 2008).

± Jonathan B. Baker, Mavericks, Mergers and Exclusion: Proving Coordinated Competitive Effects Under the Antitrust Laws, 77 N.Y.U.L. Rev. 135 (2002).

William J. Kolasky, Coordinated Effects in Merger Review: From Dead Frenchmen to Beautiful Minds and Mavericks, Prepared Remarks Before the ABA Section of Antitrust Law Spring Meeting Washington, DC (Apr. 24, 2002).

Oxera, The Ties that Bind: When Is Retaliation Effective and Credible for Tacit Collusion? (May 2008)

See generally AppliedAntitrust.com, Coordinated Effects

Class 16

MAKE-UP CLASS

WEDNESDAY, OCTOBER 24

Analysis of district court opinion

Class 16 reading guidance

Unit 9 reading materials

DOJ/FTC Horizontal Merger Guidelines § 6 (unilateral effects)

DOJ/FTC Horizontal Merger Guidelines § 10 (Efficiencies)

DOJ/FTC Horizontal Merger Guidelines § 11 (Failure and Exiting Assets)

Anticompetitive Effect in Horizontal Mergers (Class 16 class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Class 14-17 slides (revised on October 25)

1 ABA Section of Antitrust Law, Antitrust Law Developments 372-74 (8th ed. 2017) (unilateral effects).

± For a more detailed treatment of the use of diversion ratios in unilateral effects anlaysis than found in U.S. cases, see ± UK Office of Fair Trading, Anticipated Acquisition of the Online DVD Rental Subscription Business of Amazon Inc. by LOVEFiLM International Limited, No. ME/3534/08 (2008).

± Herbert Hovenkamp, Analyzing Horizontal Mergers: Unilateral Effects in Product-Differentiated Markets (2009)

Gregory J. Werden, Unilateral Competitive Effects of Horizontal Mergers I: Basic Concepts and Models, in 2 Issues In Competition Law and Policy 1319 (ABA Section of Antitrust Law 2008).

Gregory J. Werden & Luke M. Froeb, Unilateral Competitive Effects of Horizontal Mergers II: Auctions and Bargaining, in 2 Issues In Competition Law and Policy 1343 (ABA Section of Antitrust Law 2008).

± Carl Shapiro, Unilateral Effects Calculations (rev. Oct. 2010)

± Oxera, Unilateral Effects Analysis and Market Definition: Substitutes in Merger Cases? (June 2011)

Unit 10

ABInbev/Grupo Modelo

Class 17

Thursday, October 25

Finish H&R Block/TaxACT

 

There are no class notes for this unit

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Class 14-17 slides (revised on October 25)

We will not have time on Thursday to do ABI/Grupo Modelo. I will try to pick it up later in the course

Class 17 reading guidance

Unit 10 reading materials

Unit 11

Sysco/U.S. Foods

Class 18

Tuesday, October 30

Analysis of district court opinion

Class 18 reading guidance

Unit 11 reading materials

Review Merger Antitrust Litigation (Unit 5 class notes)

Class 18 homework assignment

Instructor's answer (with a minor typo corrected)

 

Unit 12

Staples/Office Depot

Class 19

Thursday, November 1

Analysis of district court opinion

Class 19 reading guidance

Unit 12 reading materials

Class 19 homework assignment

Instructor's answer

 

Unit 13

Anthem/Cigna

Class 20

Tuesday, November 6

Analysis of district court opinion

Class 20 reading guidance

Unit 13 reading materials (required reading only)

Class 20 homework assignment

Instructor's answer

Unit 13 reading materials (full set)

Unit 14

Short Horizontal Case Studies

Class 21

Thursday, November 8

ABI/Grupo Modelo

Halliburton/Baker Hughes

Heinz/Beech-Nut

Adobe/Aldus

SGI/Alias/Wavefront

Read the Unit 14A reading materials and familiarize  yourself with the Class 21 slides

There is no separate reading guidance for this unit

Unit 14A reading materials (required reading only)

Short Horizontal Case Studies (Class 21 slides—revised Nov. 7, 2018)

Class 21 homework assignment

Unit 14A case materials (full set)

ABI/Grupo Modelo

Halliburton/Baker Hughes

Heinz/Beech-Nut

Adobe/Aldus

SGI/Alias/Wavefront

Class 22

Tuesday, November 13

Energy Solutions/Waste Control Specialists

Dollar General/Dollar Tree/Family Dollar

Sirius/XM

Boston Scientific/CVIS

Class 22-23 reading guidance (NEW Nov. 9, 2018)

Unit 14B reading materials (required reading only)

Short Horizontal Case Studies (Class 22 slides) [TO COME]

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Unit 14B case materials (full set)

Energy Solutions/Waste Control Specialists

Dollar General/Dollar Tree/Family Dollar

Sirius/XM

Boston Scientific/CVIS

 

Class 23

Thursday, November 15

Abitibi/Bowater

Tronox/Cristal

Northwest/Continental

Continental/Delta

Class 22-23 reading guidance (NEW Nov. 9, 2018)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Unit 14C case materials (full set)

Abitibi/Bowater

Tronox/Cristal

Northwest/Continental

Continental/Delta

 

Unit 15

Potential Competition Mergers

Class 24

Tuesday, November 20

Mylan/Perrigo

Medtronic/Covidien

Mallinckrodt (Questcor)/Novartis

Steris/Synergy Health

Nielsen/Arbitron

Class 24 reading guideance [TO COME]

There are no reading materials for this unit

Potential competition mergers (class notes) [TO COME]

Class 24 homework assignment [TO COME]

Unit 15 case materials (optional)

Mylan/Perrigo

Medtronic/Covidien

Mallinckrodt (Questcor)/Novartis

Steris/Synergy Health

Nielsen/Arbitron

Unit 16

Vertical Mergers

   

Class 25

Tuesday, November 27

General Electric/Avio

Comcast/NBCUniversal

AT&T/Time Warner

Class 25 reading guideance [TO COME]

Reading materials [TO COME]

Vertical mergers (class notes) [TO COME]

Class 25 homework assignment [TO COME]

Unit 16 case materials (optional)

Jonathon Sallet, Dep. Ass't Att'y Gen, U.S. Dep't of Justice, Antitrust Div., The Interesting Case of the Vertical Merger (Nov. 17, 2016)

D. Bruce Hoffman, Dir. Bur. of Competition, Fed. Trade Comm'n, Vertical Merger Enforcement at the FTC, Prepared Remarks Before the Credit Suisse 2018 Washington Perspectives Conference, Washington, D.C. (Jan. 10, 2018)

Steven C. Salop & Daniel P. Culley, Vertical Merger Enforcement Actions: 1994–July 2018 (2018)

Steven C. Salop, Invigorating Vertical Merger Enforcement (2018)

Class 26

Thursday, November 29

AT&T/Time Warner (con't)

Coca-Cola/Coca-Cola Enterprises