On November 19, 2018, WLF filed comments with the Federal Trade Commission as part of its ongoing Hearings on Competition and Consumer Protection in the 21st Century. The comment focused on one particular question posed during the series’ third hearing on Acquisitions of Nascent and Potential Competitors in Digital Technology Markets: What is the appropriate antitrust framework to evaluate acquisitions of potential or nascent competitors in high-technology markets? WLF argued that while FTC should only utilize their existing tools and review methodologies when considering such combinations, they should do so in an appropriately forward-looking manner. A failure to consider future changes in the market in which the merger is occurring, WLF explained, can have a deleterious impact on competition, and, in turn, consumer welfare. The comment provided a number of examples to support WLF’s argument, including shortsighted market-definitions in DOJ’s challenge of the AT&T-Time Warner merger, and FTC’s opposition to Whole Foods’ purchase of Wild Oats.
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