Merger Antitrust Law (2022)

New Materials will be posted as they are finalized

 

Dale Collins
Georgetown University Law Center

NB: "±" indicates that the hyperlink will take you to another site.

Home page
Topical index
Case studies index

 

    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 2022 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 2.2 (revised November 6, 2022)
Cumulative class slide deck

 
 
Required Reading
Comments and Optional Reading

Unit 1

Merger Antitrust Law: TransDigm/Takata

Unit 1 class slides

Class 1

Tuesday, August 30

Introduction
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 (optional in the first week)

Instructor's answer

 

 

TransDigm/Takata case study (complete)

Note on Antitrust Hornbooks and Other Study Aids

Demand curves and consumer surplus (YouTube videos):

Marginal Revolution University, The Demand Curve

Marginal Revolution University, A Deeper Look at the Demand Curve

Marginal Revolution University, What Is Consumer Surplus?

Marginal Revolution University, What Is Producer Surplus?

Marginal Revolution University, What Is Deadweight Loss?

Deadweight Loss- Key Graphs of Microeconomics

Twombly/Iqbal

Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007)

Ashcroft v. Iqbal, 556 U.S. 662 (2009)

Unit 2

Predicting Merger Antitrust Enforcement Challenges

Unit 2 class slides (rev. Sept. 6, 2022)

Class 2

Thursday, September 1

Predicting merger antitrust enforcement challenges
Advising clients at the first client meeting
DOJ/FTC 2010 Horizontal Merger Guidelines

Class 2 reading guidance

Unit 2 reading materials

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

Predicting Merger Antitrust Enforcement Challenges (class notes) (minor revisions Aug. 30, 2022)

Class 2 homework assignment (optional in the first week)

Instructor's answer

 

Commentary

Evolution of the Merger Guidelines

± Joseph Farrell & Carl Shapiro, The 2010 Horizontal Merger Guidelines After 10 Years, 58 Rev. Indus. Org. 1 (2021)

± Carl Shapiro, The 2010 Horizontal Merger Guidelines: From Hedgehog to Fox in Forty Years, 77 Antitrust 701 (2010).

Jonathan Kanter, Ass't Att'y Gen. Antitrust Div., U.S. Dep't of Justice, Respecting the Antitrust Laws and Reflecting Market Realities, Prepared Remarks Before the Georgetown Antitrust Law Symposium, Washington, DC (Sept. 13, 2022)

Lina M. Khan, Chair. Fed. Trade Comm'n, Remarks Prepared for Delivery at the Fordham Annual Conference on International Antitrust Law & Policy, New York, NY (Sept. 16, 2022)

± Oversight of Federal Enforcement of the Antitrust Laws, Hearing before the Subcomm. on Competition Policy, Antitrust, and Consumer Rights of the S. Comm. on the Judiciary (Sept. 20, 2022) (video)

Jonathan Kanter. Ass't Att'y Gen., Antitrust Div., U.S. Dep't of Justice (prepared statement)
Lina Khan, Chair, Fed. Trade Comm'n (prepared statement)

2010 Merger Guidelines revision project

Press Release, U.S. Dept. of Justice & Fed. Trade Comm'n, Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal Mergers (Jan. 18, 2022)

U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement (Jan. 18. 2022)

± Comments submitted, Regulations.gov (searchable web site with links to all comments)

± Thurman Arnold Project. Yale Sch. Mgmt., Merger Guidelines (web site cataloging significant comments and providing links)

Unit 3

Some Merger Antitrust History

Unit 3 class slides

Class 3

Tuesday, September 6

Class 3 reading guidance

Unit 3 reading materials

A Brief History of Antitrust Law (class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Commentary

± Herbert Hovenkamp, The Slogans and Goals of Antitrust Law (June 14, 2022).

Dale Collins, Antitrust on the Brink: The Calls for Radical Reform, Presentation to the Antitrust Law Association (Sept. 16, 2021) (slides)

Christine S. Wilson, Comm'r, Fed. Trade Comm'n, The Neo-Brandeisian Revolution: Unforced Errors and the Diminution of the FTC, Prepared Remarks for the ABA Antitrust Law Section’s 2021 Fall Forum (Nov. 9, 2021)

Alvaro M. Bedoya, Fed. Trade Comm'n, Returning to Fairness, Prepared Remarks for the Institute for Local Self-Reliance & the Open Markets Institute Midwest Forum on Fair Markets: What the New Antimonopoly Vision Means for Main Street, Minneapolis, MN (Sept. 22, 2022) (video) (the ± full video of the Midwest Forum starts around 2:28:30)

± Carl Shapiro, Antitrust in a Time of Populism, 61 Int'l J. Indus. Org. 714 (2018).


Withdrawal of FTC 2015 Section 5 Policy Statement

Fed. Trade Comm'n, Statement of Enforcement Principles Regarding “Unfair Methods of Competition” Under Section 5 of the FTC Act (2015)

FTC video of July 1, 2021, open meeting (excerpts of Section 5 Policy Statement discussion)

NB: This is a very large file that needs to be downloaded before it can be played. Alternatively, go to the complete streaming version on the FTC web page, listen to the introduction up to the first issue and then skip to around 43:20

Congressional testimony

Oversight of Federal Enforcement of the Antitrust Laws: Hearing Before the Subcomm. on Competition Policy, Antitrust & Consumer Rights of the S. Comm. on the Judiciary, 117th Cong. (Sept. 20, 2022) (statement of the Federal Trade Commission)

Dissenting Statement of Commissioners Noah Joshua Phillips and Christine S. Wilson, Federal Trade Commission (Sept. 20, 2022)

2022 FTC Section 5 Policy Statement

Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the Federal Trade Commission Act (Nov. 10, 2022) (3-1 vote)

Press Release, Fed. Trade Comm'n, FTC Restores Rigorous Enforcement of Law Banning Unfair Methods of Competition (Nov. 10, 2022)

Statement of Chair Lina M. Khan Joined by Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro M. Bedoya (Nov. 10, 2022)

Statement of Commissioner Alvaro M. Bedoya, Joined by Chair Lina M. Khan and Commissioner Rebecca Kelly Slaughter (Nov. 10, 2022)

Dissenting Statement of Commissioner Christine S. Wilson (Nov. 10, 2022)

Unit 4

The DOJ/FTC Merger Review Process

Unit 4 class slides

Class 4

Thursday, September 8

Class 4 reading guidance

Unit 4 reading materials

The DOJ/FTC Merger Review Process (class notes)

Class 4 homework assignment

Instructor's answer

Optional: Albertsons/Safeway case study (complete)
NB: There is no need for you to look at this case study in order to do the homework. It is here only if you have some interest in learning more about the transaction.

 

 

 

Premerger notification

± Hart-Scott-Rodino Act, Clayton Act § 7A, 18 U.S.C. § 18a (Premerger notification and waiting period)

± HSR Form (ver. 1.0.2) (updated Aug. 4, 2017)

± HSR form instructions (Sept. 25, 2019)
Note: These forms may not display on some browsers. If you do not get the proper forms, please hit the "download" button on your browser and view the download on Adobe Acrobat Viewer (or just search for the forms using your favorite search engine).

Revised Jurisdictional Thresholds for Section 7A of the Clayton Act, 87 Fed. Reg. 3541 (Jan. 24, 2022) (effective Feb. 23, 2022)

S. 228: Merger Filing Fee Modernization Act of 2021 (updated August 31, 2021: On May 13, 2021, the Senate Judiciary unanimously approved the bill without amendment and reported it to the floor. Subsequently, the bill was incorporated as Section 6202 of the United States Innovation and Competition Act of 2021, S. 1260, 117th Cong. (passed Senate June 8, 2021)--pending in the House)

Second request investigations

DOJ Model Second Request (Apr. 2022)
Note: This document does not appear on the ATD's website. It was obtained through a FOIA request.

FTC Model Second Request (Oct. 2021)

Model timing agreements

DOJ Model Timing Agreement (July 2022)
Note: This document does not appear on the ATD's website. It was obtained through a FOIA request.

FTC Model Timing Agreement (Feb. 2019)

Withdrawal of FTC 1995 Policy Statement on Prior Approvals

Press Release, Fed. Trade Comm’n, FTC Acts To Reduce Prior-Approval Burden on Companies in Merger Cases (June 22, 1995)

Fed. Trade Comm'n, Notice and Request for Comment Regarding Statement of Policy Concerning Prior Approval and Prior Notice Provisions in Merger Cases, 60 Fed. Reg. 39745 (Aug. 3, 1995).

Press Release, Fed. Trade Comm’n, FTC Rescinds 1995 Policy Statement that Limited the Agency’s Ability to Deter Problematic Mergers (July 21, 2021).

Remarks of Chair Lina M. Khan Regarding the Proposed Rescission of the 1995 Policy Statement Concerning Prior Approval and Prior Notice Provisions (July 21, 2021)

Prepared Remarks of Commissioner Rohit Chopra Regarding the Motion to Rescind the Commission’s 1995 Policy Statement on Prior Approval and Prior Notice (July 21, 2021)

Dissenting Statement of Commissioner Noah Joshua Phillips (July 21, 2021)

Oral Remarks of Commissioner Christine S. Wilson: Care Labeling Rule Proposed Policy Statement on Repair Restrictions Imposed by Manufacturers and Sellers Policy Statement on Prior Approval and Prior Notice Provisions in Merger Cases (July 21, 2021)

Imposing costs on deals at the FTC

Bryan Koenig, FTC's Noah Phillips Reflects on Tenure At Changing Agency, Competition Law 360 (Sept. 23, 2021) (excerpt on early termination and the FTC's imposition of costs to discourage deals)

 

Other supplemental materials

± FTC Merger Review web page

± DOJ Merger Enforcement web page

± DOJ and FTC, Annual Report to Congress for Fiscal Year 2019 (July 2020) (latest published report)

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

Unit 5

Merger Antitrust Settlements

Unit 5 class slides

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

Class 5

Tuesday, September 13

Settlements

 

Class 5 reading guidance

Unit 5 reading materials

Unit 5. Merger Antitrust Settlements (class notes)

There is no homework assignment for this class

 

Case studies

Albertsons/Safeway case study (complete)
TransDigm/Takata case study (complete)
DaVita/University of Utah case study (complete)

Agency materials: DOJ

Makan Delrahim,Ass't Att'y Gen., U.S. Dep't of Justice, Antitrust Div., Improving the Antitrust Consensus, Prepared Remarks Before the New York State Bar Association Antitrust Section, New York, NY (Jan. 25, 2018)

U.S. Dep't of Justice, Antitrust Div., Antitrust Division Manual Ch. 4 D: Negotiating and Entering Consent Decrees (5th ed. updated Mar. 2014)

U.S. Dep't of Justice, Antitrust Div., Antitrust Division Policy Guide to Merger Remedies (rev. June 2011) (news release)

Agency materials: FTC

Fed. Trade Comm’n, Bureau of Competition, Negotiating Merger Remedies (Jan. 2012)

Fed. Trade Comm'n, The FTC’s Merger Remedies 2006-2012: A Report of the Bureaus of Competition and Economics (Jan. 2017) (FTC news release)

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

Fed. Trade Comm'n, Bureau of Competition, Frequently Asked Questions About Merger Consent Order Provisions (downloaded August 8, 2019)

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 (Sept. 17, 2013)

Other materials

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

William J. Donovan & Breck P. McAllister, Consent Decrees in the Enforcement of Federal Anti-Trust Laws, 46 Harv. L. Rev. 885 (1933) (for some early history of the use of consent decrees in antitrust cases)

Unit 6

Merger Antitrust Litigation

Unit 6 class slides

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

Class 6

Thursday, September 15

Litigating merger antitrust cases

 

Class 6 reading guidance

Unit 6 reading materials

Unit 6. Merger Antitrust Litigation (class notes)

There is no homework assignment for this class

Case study

The Course of Litigation: EnergySolutions’ Acquisition of Waste Control Specialists (Nov. 16, 2016)

Commentary

± Planet Money, Episode 438: Mavericks, Monopolies and Beer (Feb. 23, 2013) (ABI/Grupo Modelo)

Unit 7

Hertz/Avis Budget/Dollar Thrifty

Unit 7a class slides (for Class 7)
Unit 7b class slides (for Class 8)

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

Class 7

Tuesday, September 20

The 2010 Hertz/Dollar Thrifty deal

 

Class 7 reading guidance

Unit 7 reading materials

There are no class notes for this class

Class 7 homework assignment
I encourage you to work in groups on this assignment

Instructor's answer

YouTube videos

Present value

Present value of an annuity

Present value of a perpetuity (perpetual annuity)

Weighted average cost of capital (WACC)

Auction Theory: Winner's Curse

Class 8

Thursday, September 22

Antitrust considerations and the merger agreement

The bidding war with Avis
FTC review and settlement
Aftermath

Class 8 reading guidance

Unit 7 reading materials

Allocating Antitrust Risk in Merger Agreements (class notes)

Class 8 homework assignment

Instructor's answer

 

 

Risk-Shifting in Hertz/Dollar Thrifty (optional class notes)

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)

See Hertz/Avis Budget/Dollar Thrifty: The Bidding War for a collection on SEC materials and press releases on the bidding war for Dollar Thrifty between Hertz and Avis Budget.

 

Anthem/Cigna contract litigation

In re Anthem-Cigna Merger Litig., No. CV 2017-0114-JTL, 2020 WL 5106556 (Del. Ch. Aug. 31, 2020) (unpublished), judgment entered, (Del. Ch. 2020), summarily aff'd sub nom. Cigna Corp. v. Anthem, Inc., 251 A.3d 1015 (Del. 2021) (unpublished)

Unit 8

Competition Economics

Unit 8 class slides

Class 9

Tuesday, September 27

Part 1. Demand, Costs, and
Profit-Maximization

 

Class 9 reading guidance

Competition Economics Part 1 (class notes)

There are no reading materials for this class

Class 9 homework assignment

Instructor's answer

Studies

± The Merger Working Group, International Competition Network, The Role of Economics and Economic Evidence in Merger Analysis (Apr. 2013).

YouTube videos

Costs, Revenue and Profits

Revenue, Costs and Profit Part 1

Revenue, Costs and Profit Part 2

Revenue, Costs and Profit Part 3

Marginal Revolution University, The Demand Curve

Marginal Revolution University, A Deeper Look at the Demand Curve

Marginal Revolution University, The Demand Curve Shifts

From Demand to Inverse Demand

Marginal Revenue for a Monopolist Facing Linear Demand

Finding a Revenue Function from a Linear Demand Function

Marginal Revolution University, The Supply Curve

Marginal Revolution University, A Deeper Look at the Supply Curve

Marginal Revolution University, The Supply Curve Shifts

Marginal Revolution University, The Equilibrium Price and Quantity

Marginal Revolution University, Exploring Equilibrium

Marginal Revolution University. Maximizing Profit Under Competition

Commentary

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

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

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

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

 

Really, really optional: If you want to understand derivatives and would like a quick introduction, see the following YouTube videos:

Derivatives... What? (on the theory of derivatives)

Derivatives... How? (on calculating the derivative--first 6.5 minutes is sufficient)

 

Thursday, September 29

NO CLASS

 

Class 10

Tuesday, October 4

Part 2. Markets and Market Equilibrium

Substitutes, complements, and elasticities

Perfectly competitive markets

Perfectly monopolized markets

Imperfectly competitive markets

 

Class 10 reading guidance

Basic Competition Economics Part 2 (class notes)

There are no reading materials for this class

Class 10 homework assignment

Instructor's answer

 

 

 

Commentary

± Kenneth G. Elzinga & David E. Mills, The Lerner Index of Monopoly Power: Origins and Uses (working paper Jan. 18, 2011), final version at 101 Am. Econ. Rev. 558 (2011).

YouTube videos

How Substitutes and Complements Affect Demand

Marginal Revolution University, Elasticity of Demand

Marginal Revolution University, Calculating Elasticity of Demand

Marginal Revolution University, Elasticity and its Applications

Cross elasticity of demand

Diversion ratios

Marginal Revolution University, Calculating the Elasticity of Demand

Intuition for Monopoly and Elasticity

Marginal Revolution University, The Equilibrium Price and Quantity

Marginal Revolution University, Exploring Equilibrium

Marginal Revolution University, Introduction to the Competitive Firm

Marginal Revolution University, Maximizing Profit Under Competition

Monopoly Basics

The Monopoly Markup

Cournot Competition

Cournot oligopoly

How to Solve Cournot Problem: Algebra-Based Solution

Liam Malloy, Cournot Asymmetric Costs and n Firms

Bertrand Competition

Bertrand Oligopoly (solving a Bertrand oligopoly problem)

Cournot versus Bertrand Basics

Dominant Firm with Competitive Fringe: Equilibrium

OPTIONAL
REVIEW

Wednesday, October 5
3:30 pm - 5:30 pm
McD 141

Optional economics review session

 

Unit 9

H&R Block/TaxACT

 

Unit 9a class slides (Classes 11-13. Market definition)
Unit 9b class slides (Classes 14-15. Anticompetitive effects)

Class 11

Thursday, October 6

Analysis of the district court opinion

Institutional setting

Market definition: (Brown Shoe factors)

Introduction to the hypothetical monopolist test

Class 11 reading guidance

Unit 9 reading materials

Market Definition
(rev. Oct. 18, 2022--fixed error on slide 43)

Class 11 homework assignment

Instructor's answer

Supplemental (but you may find useful): Introduction to Formal Horizontal Merger Analysis. We will covered all the materail in this deck but it will over several weeks.

 

Case 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).

Generally

AppliedAntitrust.com, Market Definition

1 ABA Section of Antitrust Law, Antitrust Law Developments ch. 6 (9th ed. 2022) (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.

± Christine Wilson & Keith Klovers, Same Rule, Different Result: How the Narrowing of Product Markets Has Altered Substantive Antitrust Rules, 84 Antitrust L.J. 55 (2021)

± Serge Moresi, Steven C. Salop & John Woodbury, Market Definition in Merger Analysis (Feb. 9, 2017)

± Malcolm Coate & Jeffrey Fischer, Why Markets Matter for Evidence-Based Merger Analysis (Jan. 2010)

± 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 in Handbook of Antitrust Economics 1 (Paolo Buccirossi ed., 2008).

± Gregory J. Werden, The History of Antitrust Market Delineation, 76 Marquette L. Rev. 123 (1992).

Criticism

± Louis Kaplow, Why (Ever) Define Markets?, 124 Harv. L. Rev. 437 (2010)

± Louis Kaplow, Market Definition Alchemy May 2013), published at 57 Antitrust Bull. 915 (2012)

± Malcolm B. Coate, Market Definition is Not Alchemy (Jan. 22, 2014).

Louis Kaplow, Market Definition: Impossible and Counterproductive, 79 Antitrust L.J. 361 (2013)

YouTube

The Global Antitrust Institute, Market Definition (general introduction)

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.

Tuesday, October 12

LEGISLATIVE MONDAY

NO CLASS

 

Class 12

Wednesday, October 12
NOTE NEW DATE--MAKEUP CLASS

Analysis of the district court opinion

Market definition (critical loss tests)

Class 12 reading guidance

Unit 9 reading materials

Market Definition
(rev. Oct. 18, 2022--fixed error on slide 43)

Class 12 homework assignment

Instructor's answer

 

 

Critical loss analysis

± Joseph Farrell & Carl Shapiro, Improving Critical Loss Analysis, Antitrust Source, Feb. 2008.

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

± Michael Katz & Carl Shapiro, Critical Loss: Let’s Tell the Whole Story, Antitrust, Spring 2003

Daniel P. O’Brien & Abraham L. Wickelgren, A Critical Analysis of Critical Loss Analysis, 71 Antitrust L.J. 161 (2003)

± David T. Scheffman & Joseph J. Simons, The State of Critical Loss Analysis: Let’s Make Sure We Understand the Whole Story, Antitrust Source, Nov. 2003

± Daniel O’Brien & Abraham Wickelgren, The State of Critical Loss Analysis: Reply to Scheffman and Simons, Antitrust Source, Mar. 2004.

± Carl Shapiro, Mergers with Differentiated Products, Antitrust, Spring 1996, at 23.

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

± Serge Moresi & Hans Zenger, Recapture Ratios In Merger Analysis (Oct. 29, 2017).

Øystein Daljord & Lars Sørgard, Single-Product Versus Uniform SSNIPs, 31 Int'l Rev. L. & Econ. 142 (2011) (± working paper version)

See generally AppliedAntitrust.com, Market Definition

Class 13

Thursday, October 13

Analysis of the district court opinion

Market definition (diversion ratio tests)

Class 13 reading guidance

Unit 9 reading materials

Market Definition
(rev. Oct. 18, 2022--fixed error on slide 43)

Class 13 homework assignment

Instructor's anwer

Commentary

± Serge Moresi & Hans Zenger, Recapture Ratios In Merger Analysis (Oct. 29, 2017).

± Oliver Budzinski & Isabel Ruhmer, Merger Simulation in Competition Policy: A Survey (working paper Jan. 2009), final version at 6 J. Competition L. & Econ. 277 (2010).

Class 14

Tuesday, October 18

Analysis of the district court opinion

PNB presumption

Ease of entry defense

Coordinated effects

Elimination of a "maverick"

Class 14 reading guidance

Unit 9 reading materials (rev. Oct. 15, 2022)
Added new case excerpts beginning at p. 213

Anticompetitive Effects in Horizontal Mergers

Downward-Pricing Pressure Defenses

Class 14 homework assignment

 

Identifying market participants; determining market share and concentration

1 ABA Section of Antitrust Law, Antitrust Law Developments 361-71 (9th ed. 2022)

Coordinated effects

1 ABA Section of Antitrust Law, Antitrust Law Developments 375-77 (9th ed. 2022) (coordinated effects).

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

Miguel de la Mano, Coordinated Effects (undated)

± Simon Loertscher & Leslie M. Marx, Coordinated Effects in Merger Review, 64 J.L. & Econ. 705 (2021) (± Appendix)

Robert H. Porter, Mergers and Coordinated Effects, 73 Int'l J. Indus. Org. ___ (2020)slide deck)

± Natalia II Fabra & Massimo Motta, Assessing Coordinated Effcts in Merger Cases (Nov. 30, 2016), final version at Handbook of Game Theory and Industrial Organization ch. 5 (Luis C. Corchón & Marco A. Marini eds. 2018)

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

± William E. Kovacic Robert C. Marshall, Leslie M. Marx & Steven P. Schulenberg, Quantitative Analysis of Coordinated Effects, 76 Antitrust L.J. 397 (2009).

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

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).

Applications

Nathan H. Miller, & Matthew C. Weinberg, Understanding the Price Effects of the MillerCoors Joint Venture, 85 Econometrica 1763 (2017)

Nathan H. Miller, Gloria Sheu & Matthew C. Weinberg, Oligopolistic Price Leadership and Mergers: The United States Beer Industry, 111 Am. Econ. Rev. 3123 (2021) .

± Daniel Greenfeld, Bruce Kobayashi, Jeremy Sandford, Christopher Taylor & Nathan Wilson. Economics at the FTC: Quantitative Analyses of Two Chemical Manufacturing Mergers. 55 Rev. Indus. Org. 607 (2019)

Criticisms

Louis Kaplow, Horizontal Merger Analysis, 79 Int'l J. Indus. Org. 102714 (2021)

U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement 4 (Jan. 18. 2022) (specific requests re coordinated effects)

See generally AppliedAntitrust.com, Coordinated Effects

Class 15

Thursday, October 28

Analysis of the district court opinion

Unilateral effects

Efficiencies defense

Class 15 reading guidance

Unit 9 reading materials (rev. Oct. 15, 2022)
Added new case excerpts beginning at p. 213

Anticompetitive Effects in Horizontal Mergers (class notes)

Downward-Pricing Pressure Defenses (class notes)

Class 15 homework assignment

 

 

Unilateral effects

1 ABA Section of Antitrust Law, Antitrust Law Developments 377-80 (9th ed. 2022) (unilateral effects).

YouTube videos:

± The Global Antitrust Institute, Introduction to Unilateral Effects

± Howard Chang, Diversion Ratios

± Richard Schmalensee, Upward Pricing Pressure Test

± 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)

± Serge Moresi & Hans Zenger, Aggregate Diversion and Market Elasticity (June 17, 2017)

± LEAR, Merger Screen and the Use of Price Pressure Tests (Feb. 2013)

± Steven C. Salop & Serge Moresi, Updating the Merger Guidelines: Comments (Nov. 9, 2009)

± László Bokor, Strictness and Accuracy of Simple Price Tests of Merger Control (Oct. 2019)

± Charles Taragin & Margaret Loudermilk, Using Measures of Competitive Harm for Optimal Screening of Horizontal Mergers (Oct. 2, 2019)

± Nathan Miller & Gloria Sheu, Quantitative Methods for Evaluating the Unilateral Effects of Mergers (July 20, 2020)

± Jéssica Dutra & Tarun Sabarwal, Antitrust Analysis with Upward Pricing Pressure and Cost Efficiencies, 15 PloS one 1 (2020)

± Gregory J. Werden & Luke M. Froeb, Choosing among Tools for Assessing Unilateral Merger Effects (working paper), final version at 7 Eur. Competition J. 155 (2011).

± Nathan H. Miller, Marc Remer, Conor Ryan & Gloria Sheu, Upward Pricing Pressure as a Predictor of Merger Price Effects (EAG Discussion Paper, No. 16-2, Mar. 2016), final version at 52 Int'l J. Indus. Org. 216 (2017).

For a more detailed treatment of the use of diversion ratios in unilateral effects analysis 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)

See also ± Marc Ivaldi, Bruno Jullien, Patrick Rey, Paul Seabright & Jean Tirole, The Economics of Unilateral Effects (Interim Report for DG Competition, European Commission (Nov. 2003))

Criticisms

U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement 4 (Jan. 18. 2022) (specific requests re unilateral effects)

Efficiencies defense

± Orley C. Ashenfelter, Daniel S. Hosken & Matthew C. Weinberg, Efficiencies Brewed: Pricing and Consolidation in the US Beer Industry (working paper Aug. 14, 2013), final version at 46 RAND J. Econ. 328 (2015).

Opportunity costs

± Jason Fernando, Opportunity Cost Formula, Calculation, and What It Can Tell You, Investopedia.com (undated)

± Marginal Revolution University, What Is Opportunity Cost? (YouTube)

± Econclips, Opportunity Cost: The Road Not Taken (YouTube)

Unit 10

U.S. Sugar/Imperial Sugar

Unit 10 class slides

Class 16

Tuesday, October 25

Analysis of the district court opinion

Product markets

Geographic markets

Class 16 reading guidance: Read the Unit 10 reading materials and the 2010 Horizontal Merger Guidelines § 4.2 (Geographic Market Definition). Review the new section on geographic market definition in the Market Definition class notes (slides 70-88) and supply-side switching (slides 27-36)

Unit 10 reading materials

Market Definition (class notes)

Review Anticompetitive Effects and Downward-Pricing Pressure Defenses class notes if needed

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

 

Commentary

 

 

Unit 11

Sysco/U.S. Foods

 

Unit 11 class slides

Class 17

Thursday, October 27

Analysis of the district court opinion

Cluster markets

Targeted customer markets

Auction theory of unilateral effects

Power buyer defense

Class 17 reading guidance

Unit 11 reading materials

Sysco/US Foods (class notes)

Downward-Pricing Pressure Defenses (class notes)

Unit 11 class slides (background)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Commentary

± Gregory J. Werden, The Hypothetical Monopolist Test in Sysco: A Litigation Muddle Needing Analytic Clarity, 12 J. Competition L. & Econ. 341 (2016)

Unit 12

Case Study Problem: Ice Cream Merger

Unit 12 class slides

Class 18

Tuesday, November 1

 

Class 18 homework assignment (ungraded)

Instructor's answer and feedback memorandum

NB: There are no reading guidance, reading materials, or class notes for this unit. Spend all of your time on the homework assignment. This is also a good time to work on your "boilerplate" of merger antitrust concepts and tests that you can copy into the exam answers.

 

Class 19

Thursday, November 3

Continue analysis of Class 18 homework assignment

NB: There are no reading guidance, reading materials, or class notes for this unit. However, you might look at the Fountain Pen Merger Hypothetical and Instructor's Answer/Feedback Memorandum to give you another example of a horizontal merger exam hypothetical. We will not discuss this in class. This is also a good time to work on your "boilerplate" of merger antitrust concepts and tests that you can copy into the exam answers.

 

Unit 13

Staples/Office Depot

Unit 13 class slides

Class 20

Tuesday, November 8

Analysis of the district court opinion

Class 20 reading guidance

Unit 13 reading materials

There are no separate class notes for this unit. Review Market Definition, Anticompetitive Effects, and Downward-Pricing Pressure Defenses class notes as needed

Class 19-20 homework assignment
NB: This assignment is due before class on Tuesday, November 8

 

Commentary on the 1996 Staples/Office Depot attempted merger

± Orley Ashenfelter, David Ashmore, Jonathon B. Baker, Suzanne Gleason & Daniel S. Hosken, Econometric Methods in Staples (working paper Apr. 9, 2004), revised final version at Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples, 13 Int'l J. Econ. Bus. 265 (2006).

± Serdar Dalkir & Frederick R. Warren-Boulton, Prices, Market Definition, and the Effects of Merger: Staples-Office Depot (1997), in The Antitrust Revolution: Economics, Competition, and Policy (john e. Kwoka, J. & Lawrence J. White eds., 7th ed. 2018).

± Jerry A. Hausman & Gregory K. Leonard, Documents Versus Econometrics in Staples (working paper Sept. 5, 1997).

± Mark D. Manuszak & Charles C. Moul, Prices and Endogenous Market Structure in Office Supply Superstores, 56 J. Indus. Org. 94 (2008).

± Jonathan B. Baker, Econometric Analysis in FTC v. Staples, 18 J. Pub. Pol'y & Marketing 11 (1999).

± Jonathan B. Baker & Robert Pitofsky, A Turning Point in Merger Enforcement: Federal Trade Commission v. Staples (working paper Oct. 2006), final version in Antitrust Stories 311 (Eleanor M. Fox & Daniel A. Crane eds., 2007).

Unit 14

Potential Competition Mergers

Unit 14 class slides

Class 21

Thursday, November 10

Milan/Perri go

Medtronic/Covidien

Mallinckrodt (Questcor)/Novartis)

Steris/Synergy Health

Meta/Within

 

Class 21 reading guidance

Unit 14 reading materials

Potential competition mergers (class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Additional case materials

Milan/Perrigo

Steris/Synergy Health

Commentary

ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(1) (2022) (mergers between potential competitors)

± C. Scott Hemphill & Tim Wu, Nascent Competitors, 168 U. Penn. L. Rev. 1879 (2020)

± John M. Yun, Are We Dropping the Crystal Ball? Understanding Nascent & Potential Competition in Antitrust, 104 Marq. L. Rev. 613 (2021).

± John M. Yun, Bruce H. Kobayashi, Abbott B. Lipsky, Alexander Raskovich, and , Joshua D. Wright, Potential and Nascent Competition in Merger Review: Global Antitrust Institute Comment on the DOJ-FTC Request for Information on Merger Enforcement (George Mason Law & Economics Research Paper No. 22-16, April 21, 2022).

± A. Douglas Melamed, Mergers Involving Nascent Competition (2022)

± Disruptive Competition Project, U.S. Merger Enfrocement Experiments Could Significantly Harm Innovation and the Start-Up Ecosystem, Project DisCo.com (Nov. 15, 2022)

 

Thursday, November 10

 

GRADED HOMEWORK ASSIGNMENT (posted in the evening). Your answer must be emailed to me by 8:00 pm on Monday, November 21.

 

Unit 15

Vertical Mergers

 

Class 22 slides

Class 22

Tuesday, November 15

Vertical Merger Guidelines

General Electric/Avio

Comcast/NBCUniversal

AT&T/Time Warner

Class 22 reading guidance

Unit 15 reading materials

Vertical mergers (class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Work on the graded homework assignment

 

Additional case materials

Comcast/NBCUniversal

2020 DOJ/FTC Vertical Merger Guidelines

U.S. Dep't of Justice & Fed. Trade Comm'n, Vertical Merger Guidelines (June 30, 2020)

Dissenting Statement of Commissioner Rohit Chopra (June 30, 2020)

Dissenting Statement of Commissioner Rebecca Kelly Slaughter (June 30, 2020)

Fed. Trade Comm'n, Commentary on Vertical Merger Enforcement (Dec. 2020)

2021 FTC withdrawal

News Release, Fed. Trade Comm'n, Federal Trade Commission Withdraws Vertical Merger Guidelines and Commentary (Sept. 15, 2021)

Statement of Chair Lina M. Khan, Commissioner Rohit Chopra, and Commissioner Rebecca Kelly Slaughter on the Withdrawal of the Vertical Merger Guidelines (Sept. 15, 2021)

Prepared Remarks of Commissioner Rohit Chopra (Sept. 15, 2021)

Dissenting Statement of Commissioners Noah Joshua Phillips and Christine S. Wilson (Sept. 15, 2021)

Oral Remarks of Commissioner Christine S. Wilson (Sept. 15, 2021)

2021 DOJ response

News Release, U.S. Dep't of Justice, Justice Department Issues Statement on the Vertical Merger Guidelines (Sept. 15, 2021)
NB: The statement does not withdraw the DOJ from the 2020 Vertical Merger Guidelines

Double marginalization

Marginal Revolution University, Double Marginalization Problem

Luke Bessey, Managerial Economics - Double Marginalization

Commentary

ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(2) (2022) (vertical mergers)

± Carl Shapiro & Herbert Hovenkamp, How Will the FTC Evaluate Vertical Mergers?, ProMarket.org (Sept. 23, 2021)

± Steven C. Salop, A Suggested Revision of the 2020 Vertical Merger Guidelines (May 2, 2021)

Steven C. Salop, Invigorating Vertical Merger Enforcement, 127 Yale L.J. 1962 (2018)

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

Class 23

Tuesday, November 17

AT&T/Time Warner (con't)

Coca-Cola/Coca-Cola Enterprises

UnitedHealth Group/Change Healthcare

There is no reading guidance for this class. Finish reading the AT&T/Time Warner opinion and read the Coca-Cola materials

Unit 15 reading materials

Vertical mergers (class notes)

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

Work on the graded homework assignment

Case commentary

± Carl Shapiro, Vertical Mergers and Input Foreclosure Lessons from the AT&T/Time Warner Case, 59 Rev. Indus. Org. 303 (2021)

± Dennis W. Carlton, Georgi V. Giozov, Mark A. Israel & Allan, Shampine, A Retrospective Analysis of the AT&T/Time Warner Merger (August 25, 2021), forthcoming in Journal of Law and Economics

± Gregory S. Crawford, Robin S. Lee, Michael D. Whinston & Ali Yurukoglu, AT&T/Time Warner and Antitrust Policy toward Vertical Mergers, CPI Antitrust Chronicle (July 2019).

Unit 16

Graded Homework Assignment

Unit 16 class slides

 

Monday, November 21

GRADED HOMEWORK ASSIGNMENT DUE BY 8:00 PM

 

Class 24

Tuesday, November 22

Review of Graded Homework Assignment

 

 

 

Unit 17

UnitedHealth/Change Healthcare

Unit 17 class slides

Class 25

Tuesday, November 29

Analysis of district court opinion

Class 25 reading guidance

There are no class notes for this unit

Unit 17 reading materials

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

 

Unit 18

Penguin Random House/Simon & Schuster

Unit 18 class slides

Class 26

Thursday, December 1

Analysis of the district court opinion

Power buyers defense

Failing firm defense

Class 26 reading guidance

Unit 18 reading materials

There are no class notes for this unit. Review the Downward-Pricing Pressure Defenses class notes on power buyers and failing firms.

THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS

DOJ expert

Demonstrative Exhibits for the Direct Testimony of Dr. Nicholas Hill (Aug. 8, 2022)

 

Final Review Session (optional)

 

OPTIONAL
REVIEW

Friday, December 2
1:00 pm - 3:00 pm
McD 110

OPTIONAL review session

Merger Antitrust Review: Formulas and Other Reference Materials (Nov. 2, 2022)
Subject to updating

FINAL EXAM

 

 

 

Tuesday, December 6 (8:30 AM) –
Thursday, December 15 (6:30 PM)
[Times to be confirmed]

5-hour
Open book
Take home

Instructions for the 2022 exam
(Approved by the Registrar's Office)

 


Some past exams/feedback memos

2020

Graded homework assignment: Beer Bottle Merger
Exam Q1: Omitted [This problem uses tests we did not cover in 2022. Moreover, we have further developed some of the theory beyond what I was teaching in 2020, so some of the analysis is not as complete as I would expect today. Finally, I used the one-product SSNIP test that was in the literature, which I later discovered used the wrong weights to calculate the average. I have not reworked the feedback memo to bring it up to date for the 2022 course.]
Exam Q2. The Visa/Plaid Merger

2021

Graded homework assignment: Fountain Pen Merger
Exam Q1: Hydrogen Peroxide Merger
Exam Q2: Chicken Feed Merger