Promoting Competition through Interoperability: FTC Perspectives on Antitrust Law

Abstract

The topic of this article is a policy strategy for FTC competition and a positive framework to implement this strategy. The antitrust laws and pro-competition principles embodied in these laws provide a foundation for how we conduct business and measure our economy as a whole. Antitrust laws, through their regulation of enterprises, play an integral role in shaping the institutions, market participants, and markets within our economy. The goals of antitrust enforcement are to promote competition among all markets and assist in the efficient functioning of the economy, without having regulatory agencies dictate to the economy how to function. If successful, antitrust enforcement will help sustain a market economy by providing lower prices, promoting greater innovation, and generating quicker responses from businesses to changing consumer needs and preferences. The difference in performance with regard to eco-innovation between enterprises with strong original monopoly power and those with weak original monopoly power has been more pronounced where the enforcement of anti-monopoly laws is more stringent. Furthermore, the research shows that the implementation of anti-monopoly regulations has increased the likelihood of eco-innovation by increasing competition for market share and, therefore, the development of new products. Lastly, the study shows that the negative effects of anti-monopoly laws on eco-innovation are greatest in industries with a state-owned enterprise and/or where there are significant monopolistic characteristics present and where technology is not a key component of an industry. We have discovered evidence supporting our idea through our analysis employing US patent, trademark, standard, and copyrights information. Our study offers intellectual and policy implications for how antitrust law might support innovation as a supplementary institution to patenting law.