This chapter discusses issues that arise with “decentralized” enforcement of antitrust across jurisdictions due to the proliferation of independent antitrust authorities. The overview examines potential pitfalls of antitrust proliferation, particularly enforcement externalities. The chapter then focuses on specific enforcement areas such as mergers and acquisitions, single-firm conduct by dominant firms and international cartels. The author suggests potential pathways to achieve policy harmonization across jurisdictions. He proposes that the best way to achieve any commonality and harmonization is through movement toward effects-based antitrust enforcement guided by sophisticated economic reasoning rather than a formalistic approach. The effects-based approach enables antitrust agencies to find common ground and be insulated from political considerations and subjective beliefs, thereby promoting predictability and uniformity in antitrust enforcement.
Jay Pil Choi, Wonhyuk Lim and Sang-Hyop Lee
During the past decade and a half, there has been a marked shift in emphasis from industrial policy to competition policy. Yet many challenges remain. Many industries are still highly concentrated and overall market concentration has increased since the mid-2000s. The Fair Trade Commission is still committed to its competition-advocacy role, but institutional legacies tend to impede progress on core competition issues. The commission should conduct rigorous market studies and adopt appropriate remedies to make markets work better for consumers. Policy on contentious issues should be based on sound economic theory and empirical analysis. The chapters that follow examine these issues. Authored by experts from Canada, Korea and the United States, they provide international comparisons of market structures with particular reference to the impacts of foreign competition on market concentration. The book also examines core competition issues, including international experiences with abuses of dominance, mergers and collusion, and vertical restraints.