Posted by Social Science Research Network
Antitrust and the Internet Standardization Problem
By Mark A. Lemley (Stanford Law School)
Abstract: This article evaluates the economics of the Internet and Internet-related software markets, which are heavily driven towards standardization. It suggests that a traditional section 2 antitrust analysis will fail to effectively regulate competition in such a market, particularly if it is directed at structural relief. Instead, the article recommends that section 2 play a limited role in regulating conduct in a standards competition. The article also suggests that private standard-setting may play a procompetitive role in the Internet context, and that section 1 should be relaxed in order to permit such joint activity (within certain limits).
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