EU Competition Law and US Antitrust Law
New Horizons in Competition Law and Economics series
Chapter 1: Introduction
1.1 THE SUBJECT This book explores the standards for the protection of competition in the innovation process in American antitrust law and European competition law, respectively. The development and current state of the relevant legal frameworks are described and analysed, and the results evaluated with regard to underlying economic rationale of the law. Suggestions for further development and clarification are presented and potential future applications discussed. The single most notable doctrinal development in the area of protecting competition in the innovation process is the introduction of the ‘Innovation Market’ concept, developed in US antitrust policy in the 1990s. Consequently, the innovation market concept serves as a concrete point of departure for this work. Nonetheless, in order to analyse the boundaries of the innovation market approach and its relationship to other market definitions and other tools for analysing the innovation process, the scope of the investigation has gradually grown. Moreover, since the limits of the different legal concepts and doctrines are imprecise and the same transaction may have effects on multiple ‘relevant markets’, it is appropriate to highlight the interplay and limitations between product markets, technology markets and innovation markets. 1.2 THE ANTITRUST LAW CONCEPT OF INNOVATION MARKETS The logic behind the concept of defining relevant markets as a basis for a competition law analysis is to identify the competitive restraints (in terms of competitors and competing products) that might reasonably discipline a firm by exerting competitive pressure. The innovation market concept can thus be seen as resulting from a concern...