Categories
Monopolization

Prima Facie Evidence of Monopolization

Does anyone think Apple’s $147 billion cash horde is a reward that was required to induce Steve Jobs to create the iPhone?  It’s obviously not necessary to cover other costs.

Monopoly profit is by definition profit that’s not necessary to induce production.  When a firm generates a large cash horde, it’s because it doesn’t know what to do with the money.  Which means: it doesn’t need the money!

In a world in which antitrust were taken seriously, a cash horde of $147 billion would be prima facie evidence of illegal monopolization.

And the government would force Apple to rebate it to consumers.

Update (11/12/14): Krugman is on the case.

Categories
Monopolization

Public Platforms

http://www.ilsr.org/save-internet-means-distribution-2/

Categories
Monopolization

Pay for Delay

I have been following the debate in the pages of Antitrust between two groups of distinguished economists about “pay for delay”, which is when a branded drug maker pays a generic drug maker to delay entry into the market.   The question is how much pay for delay do you need before you can conclude that the payment is anticompetitive and should therefore be treated as a violation of antitrust or competition laws?