Category Archives: Featured

Applying the Rule of Reason to Two–Sided Platform Businesses

David S. Evans and Richard Schmalensee In recent years, the federal courts’ analysis of the competitive effects of conduct challenged under the Sherman Act’s rule of reason, which generally includes market definition as a critical step, has been properly guided by sensitivity to business reality and sound economic analysis of the conduct at issue. When […]

Market Power and American Express

John B. Kirkwood The Second Circuit ruled that American Express did not have market power because it operated in a two-sided market and any leverage it exercised over merchants derived from its successful competition for cardholders. As a result, the relevant market had to include both sides of a credit card transaction, the company’s market […]

Assessing the Competitive Effects of Surcharging the Use of Payment Mechanisms

Steven Semeraro The Department of Justice’s theory of liability in its case attacking the non–discrimination provisions in American Express’s merchant contracts contends that point–of–sale competition on the price of making a purchase with a credit card is an instrument creating economic efficiency. That is, the economy would run more efficiently, and consumers would be better […]

Cuba: Déjà Vu or New Beginnings

Ryan Forrest, Hunter W. Phillips, & Magena Rodriguez – That the United States has long had a strained relationship with Cuba is no secret to the international community. Most recently, this strain has been embodied in a commercial, economic and financial embargo that has been enforced by the United States since 1962. That said, focusing only […]