Muris Provides Expert Testimony Before FTC/DOJ Antitrust Division
In the latest in a continuing series of joint public hearings designed to examine the implications of single-firm conduct under the antitrust laws, Professor Timothy Muris provided expert testimony on loyalty discounts before the Federal Trade Commission and the Department of Justice's Antitrust Division. Muris, who has in the past held the post of chairman of the Federal Trade Commission, presented November 29, 2006, testimony entitled "Antitrust Law and Economics: Exclusionary Behavior and Bundled Discounts." The intent of the joint hearings is to explore whether and when specific types of single-firm conduct may violate Section 2 of the Sherman Act by harming competition and consumer welfare and when they are pro-competitive and lawful.
"While these theories show the theoretical possibility of harm under limited conditions and may be useful as part of the overall policy debate, they fall far short of proving that anticompetitive harm from bundling is likely or even that it is more than an antitrust unicorn. Empirical evidence of harm from bundling is virtually non-existent, and experimental results show that consumer and total welfare both increase from bundling in circumstances in which economic models predict that bundling is problematic."