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What I Read This Week:
What You Should Know:
Competition Law in the US does not treat predatory pricing and integration across business lines as anticompetitive.
This is a problem because:
- Platform markets tend to prioritise growth over profits, so predatory pricing becomes a viable strategy.
- Online platforms, integrating across markets, can serve as critical intermediaries, on which their rivals depend.
Lina Khan’s solution:
We need to replace the consumer welfare standard with an approach that focuses on preserving a competitive process and market structure.
Or, if we do accept these platforms as monopolies or oligopolies, then we need to apply elements of a public utility regime that limits abuse of power.
Data Sufficiency and Graphs (from the source):
Two things you need to look at here (that sentence about Bezos and the graph which supplements it.
What I Have Been Reading: