Competition and Antitrust Law: A Very Short Introduction

Very Short Introductions #679

by Ariel Ezrachi

Very Short Introductions : Brilliant, Sharp, Inspiring

Competition is responsible for much of the prosperity around us. Competitive markets deliver lower prices, better quality, abundance of choice, and increased innovation. But while competition benefits the consumers, it can prove challenging to producers and sellers, who need to constantly improve to stay in business. As a result, sellers may sometimes look for ways to dampen the competitive process.

Our antitrust and competition laws are designed to address these risks and safeguard consumer welfare. The competition enforcers have the task of unravelling price-fixing cartels, challenging powerful companies that abuse their power, and monitoring proposed merger transactions that could undermine effective competition. In doing so, competition enforcers have to carefully consider the level of intervention and ensure they do not distort the natural dynamics of competition.

Drawing on case studies from the US and the European Union, this Very Short Introduction explores the promise and limitations of competitive market dynamics. In examining the laws and the way they are enforced, Ariel Ezrachi considers the delicate relationship between a free market economy and government intervention, and the fascinating forces of competition that shape modern society.

ABOUT THE The Very Short Introductions series from Oxford University Press contains hundreds of titles in almost every subject area. These pocket-sized books are the perfect way to get ahead in a new subject quickly. Our expert authors combine facts, analysis, perspective, new ideas, and enthusiasm to make interesting and challenging topics highly readable.

Genres: Law, Economics, Nonfiction, Business

160 pages, Paperback

Published October 1, 2021

Reviews

[Josh Friedlander · Rating 3 out of 5]

Lately I've been interested in antitrust and monopoly, so I got this book to learn more. The author, a professor of competition law at Oxford University, has written a lot for various media outlets; despite that I thought this somewhat dry survey failed to convey how interesting the topic is - touching as it does the raw nerves of Western political economy (and of course a major sujet d'actualité). Still, it's a solid Very Short Introduction. Frequently referring to the relevant precedents, the book covers topics such as defining a company's market, both geographically and conceptually; oligopoly (sometimes known as "interdependence" or "conscious parallelism", a situation where few players in a market with high barriers to entry can keep prices high without explicit collusion, the landmark case being White vs Packer Co); gauging consumer elasticity (using tools such as the SSNIP test and Cellophane fallacy); jurisdictional differences (stemming from the Sherman and Clayton Acts in the US and the TFEU in Europe, though the book briefly surveys other jurisdictions); considerations such as consumer welfare, social and environmental goals, and the power of individual firms (core to the debate between the Harvard and Chicago schools about self-regulating markets); allowing private enforcements by competitors (some US states award treble damages in order to encourage this); the respective risks of under- and over-enforcement, or Type I and Type II errors; the benefits and drawbacks of exclusive distribution agreements; network effects; natural monopolies; and other topics I didn't note down. A good lesson in the complexity of competition law is the Bayer-Monsanto merger of 2018: the companies had to run the gauntlet of both American and EU regulators, who only greenlit the deal after making Bayer divest a big chunk of its IP. After it closed, it emerged that the Monsanto herbicide "Roundup" caused non-Hodgkins Lymphoma, and that the company had, uh, been aware that their product was not not carcinogenic…The combined company's value dropped by more than the pre-merger value of Monsanto, making it one of the worst corporate mergers in history.

One of the well-known lessons of Peter Thiel's Zero to One is that the goal of business is monopoly, that "competition is for losers". This claim only sounds counter-intuitive because we are accustomed to use "pro-business" and "pro-market" as synonyms, rather than the antonyms they are. ("People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public.") Regulating markets requires broad perspective, holistic economic understanding, and constant vigilance against the natural tendency toward monopoly. Even when regulators get it right, they can only achieve an uneasy homeostasis.

[Luc BP · Rating 5 out of 5]

I am a student who was curious about the subject of antitrust after watching an interview with FTC Chair Lina Khan. After searching "antitrust" in the Audible search box, this book came up, and I knew it was exactly what I was looking for. The author does a great job of synthesizing these complex topics into brief chapters, as well as using real world examples to illustrate these points.

Overall I am very satisfied with this book and would recommend to anyone remotely interested in antitrust law; although legal topics can be difficult at times, the brevity of this book made it easy for me to take a break if I found myself losing concentration.

[David Wagner · Rating 3 out of 5]

Solid basics, useful rundown on diferences between US and EU pro-competition regulation.

[Jakub Dovcik · Rating 4 out of 5]

A surprisingly solid introduction to antitrust theory and policy. While the beginning is a bit slow, it picks up the pace and is actually pretty comprehensive.

It went much beyond the basic theories of monopolies/oligopolies that one studies within university-level microeconomics. I have not, for instance, studied stuff like conscious parallelism and tacit collusion from a theoretical perspective, so having a broader outlook on the topic was very useful.

[Josiah Richardson · Rating 4 out of 5]

I like books that do what they say they are going to do. This covers the major differences between USA and EU forms of antitrust laws, how competition is encouraged and framed by different governmental systems, and hits the major vocabulary needed to understand these two subjects that are far more involved than you might think.

[Sebastian Kaloš · Rating 4 out of 5]

information entered my brain, so a success

[Evelyn Amaral Garcia · Rating 4 out of 5]

Very well written and interesting, short but full of information

[Eleanor Fox · Rating 4 out of 5]

This was (obviously) a work read, but I thought it was good! Super clear, recent examples, interesting reflections

[Cate Conlon · Rating 5 out of 5]

This was my first time reading one of these short introduction books. I am an incoming Economics major and am still exploring different possible career fields, so I thought this book would make an interesting read. I’ve taken a microeconomics class before, so that knowledge definitely helped in my understanding of the concepts (not sure how hard this would be to understand without any prior knowledge). Unlike some reviews, I thought the topics were extremely interesting and I enjoyed the informative nature of the book. I also really liked how the author utilized court cases to serve as examples of antitrust enforcement. I would recommend this book to anyone wanting to learn more about economics or wanting to learn about an important part of US/EU law that is not talked about enough!

[a mara · Rating 2 out of 5]

Was a bit disappointed by this tbh, not super memorable, bit vague bit wishywashy

[Jake Miller · Rating 3 out of 5]

I like that it gives examples of particular anti-competition cases and how they were handled as I find Supreme Court rulings and the like very interesting.

[Anne · Rating 3 out of 5]

It was good. Explained concepts throughly. Was irritating that they didn't adapt the book for audio by explaining the charts they reference.

[Peter · Rating 3 out of 5]

The British legal expert Ariel Ezrachi published Competition and Antitrust Law: A Very Short Introduction in 2021. The book has a section of references and an index. The book has a section entitled “further reading” (Ezrachi 131-133). The first chapter introduces the concept of competition in the field of economics. Chapter 2 is on the idea of markets. Chapter 3 is entitled “the goals and scope of competition and antitrust law” (Ezrachi 28-37). Chapter 4 seeks to answer the question of ““what the optimal level of enforcement is” of competition and antitrust (Ezrachi 38-47). Chapter 5 discusses the legal framework of competition and antitrust law (Erzachi 48-54). Chapter 6 is on the enforcement of Competition and Antitrust Law. Chapter 7 is on the breaking up of cartels. Chapter 8 is entitled “Horizontal and vertical agreement” (Erzachi 74-87). Chapter 9 is on monopolies. Chapter 10 concerns “mergers and acquisitions” (Erzachi 106-117). The last chapter is on the international aspect of competition and antitrust law. The book has graphs and a table. The book uses a lot of examples from the European Union and the United States. The two countries have different approaches to Competition and Antitrust Law. Ariel Erachi’s book was a well-done introduction to Competition and Antitrust Law.