The June 4, 2024 Ninth Circuit Court of Appeals decision in Sidibe v. Sutter Health marks a potential shift in how rule of reason antitrust cases are approached and adjudicated. The opinion underscores the significance of historical evidence in antitrust trials and places considerable emphasis on analyzing the purpose behind challenged conduct.
antitrust law
The App Store Wars: An “Epic” Loss for Google Takes Shape
Although Google fought tooth and nail against it, a win for an underdog video game developer means the Google Play Store could likely soon look a lot different for Android users. Google met its match in December when Epic Games, the creator of the hit video game Fortnite, won on all counts in its antitrust suit against the tech titan. However, the fight is far from over: the court is currently determining what exactly the Google Play Store will look like in the future and heard arguments last week over Epic’s proposed injunction. As Judge Donato of the Northern District of California put it during the hearing, despite Google’s argument that “there’s a terrifying world of chaos and energy that’s just around the corner if there’s competition in the app store market,” the judge “just [doesn’t] buy it.” On the other hand, he said Epic’s proposed injunction – which would bar Google from enforcing “contractual provisions, guidelines or policies, or otherwise imposing technical restrictions, usage frictions, financial terms or in-kind benefits that … restrict, prohibit, impede, disincentivize or deter the distribution of Android apps through an Android app distribution channel other than the Google Play Store” – was “too open-ended.” Proceedings continue in August, and the parties will have opportunity for closing arguments. In the meantime, we revisit the implications and the stakes of the case, beyond just Google and its Play Store.
Legislating Around AI-Driven Algorithm Concerns
Pricing algorithms are nothing new. They are, generally speaking, computer programs intended to help sellers optimize prices in real time, or close to it. These programs can use data on demand, costs, or even competitors’ prices to “learn” to set the prices of products. What is new is the proliferation of these programs across industries and the emergence of artificial intelligence-driven pricing algorithms.
Game On! Microsoft and Activision Deal is One Step Closer to Actual Reality
By Eugenio Duron-Carielo on
On January 18, 2022, Microsoft’s acquisition of Activision, one of the world’s most-valuable gaming companies, was announced. In April 2023, the United Kingdom’s Competition and Markets Authority (CMA) blocked the deal on concerns that the deal could “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years,” a decision that Microsoft appealed to a Competition Appeal Tribunal. A few months later, in July 2023, as previously reported in Minding Your Business, the FTC’s challenge to the deal in the United States fell short, leaving the UK as the only competition authority preventing the closing of the deal.
U.S. DOJ and FTC Release Long-Anticipated Revised Merger Guidelines
On the heels of the historic proposed changes to the Hart-Scott-Rodino (“HSR”) merger review process, the U.S. Department of Justice Antitrust Division and the Federal Trade Commission released the 2023 Draft Merger Guidelines for public comment. The single set of guidelines will replace the former horizontal and vertical guidelines, becoming…
M&A Deals Face Additional Scrutiny under the FTC’s New HSR Reporting Rules
On June 29, 2023, the Federal Trade Commission published a Notice of Proposed Rulemaking that would dramatically expand HSR reporting requirements. The historic changes fundamentally alter the HSR reporting landscape, shifting to more of a “white paper” approach, similar to that of ex-U.S. jurisdictions like the EU. These modifications bring…
Microsoft Defeats FTC’s Roadblock on Path to Activision Merger
In the latest of a string of losses for antitrust enforcers, the Northern District of California resoundingly denied the FTC’s bid to enjoin the Microsoft-Activision merger, allowing the deal to proceed a week in advance of its upcoming merger termination date. In a case that tested the bounds of antitrust law in vertical integration deals, Presiding Judge Jacqueline Scott Corley found “the record evidence points to more consumer access,” rather than showing signs of reduced competition. Federal Trade Commission v. Microsoft Corporation, et al.
FTC to Dealmakers: Don’t Interfere with Investigations
By John R. Ingrassia & Colin Kass on
On June 15, 2023, the Federal Trade Commission’s Bureau of Competition issued a statement on the relationship between voluntary interviews with the agency and contractual provisions that require or limit the disclosure of information. The Bureau explains that voluntary interviews are a key aspect of investigations because they “are essential to help [them] understand real-world dynamics and effects,” and “reduce unnecessary burdens on marketplace stakeholders and Bureau staff.” In the statement, the Bureau asserts that certain contractual restrictions impede investigations, and should be considered void.