BU Now » antitrust law

Apple online-music antitrust probe

Dick Taffe — Wed, 26 May 2010 21:25:28 +0000

The Justice Department reportedly is in the early stages of an antitrust investigation against Apple Inc., the largest seller of music online, looking into allegations that it used its dominant market position to try to keep music labels from granting exclusive access to content to Amazon.com. Law Professor Keith Hylton, an authority on antitrust law, says it makes sense for Apple to trim market support for certain songs when gets a smaller share of the profits from their sale — but they’re gotten aggressive about it lately.

“There are details that might indicate that they have gone too far in some instances; that remains to be seen. Still, in the long run, consumers generally gain from this activity.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

SCOTUS slaps down NFL

Dick Taffe — Mon, 24 May 2010 21:30:46 +0000

In a unanimous vote, the Supreme Court denied the National Football League its goal of broad protection from antitrust suits. The high court ruled on a case involving a license for making souvenir caps and sent to back to a lower court to further consideration allegations by a smaller company that challenged the league’s 10-year exclusive deal with Reebok. Law Professor Keith Hylton, an authority on antitrust law, says it is understandable that the court would be reluctant to expand the “single entity” concept to include the NFL. Meantime, Sports Journalism Professor Frank Shorr says this could be the “watershed moment.”

Keith Hylton:

“‘Single entity’ status implies exemption from Section 1 of the Sherman Act, and the Court is reluctant to create broad exemptions to Section 1 when the effects may not be entirely clear.”

Contact: Keith Hylton, 617-353-8959, knhylton@bu.edu

Frank Shorr:

“It will be interesting to see if the court now expands it’s view of the National Football League’s long-standing policies. Today it’s hats. Tomorrow, who knows — uniforms, helmets, wrist bands — anything that they can make a profit on and not have to share. We could be looking back on this decision in the not-to-distant future and saying, that was the watershed moment.”

Contact: Frank Shorr, 617-353-5163, fshorr@bu.edu

Google/AdMob deal okayed

Dick Taffe — Fri, 21 May 2010 22:11:33 +0000

Despite concerns that Google could extend its Internet marketing dominance into the emerging field of wireless devices, federal regulators approved the company’s $750 million purchase of its mobile advertising rival AdMob. Law Professor Keith Hylton, an authority on antitrust law, said it looks like the right decision given rapid changes in the market such as rival Apple buying the third largest mobile ad network, Quattro Wireless. Besides, he said, Google doesn’t seemed worried about antitrust threats from the Obama administration.

“[Google] appears to have the administration working diligently on its side on the net neutrality issue, and that is probably worth a lot more than these relatively minor antitrust issues.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

New antitrust guidelines for mergers

Dick Taffe — Tue, 20 Apr 2010 22:43:20 +0000

U.S. antitrust regulators from the Department of Justice and the Federal Trade Commission have proposed new guidelines for how they scrutinize mergers for possible antitrust violations. Law Professor Keith Hylton, an antitrust law authority, and School of Management finance Professor Michael Salinger, a former FTC director, agree the proposed guidelines more accurately reflect current practice — but that only time will tell if they’ll work.

Hylton: “As defendants become better acquainted with actual practice, the FTC may find that it prefers to make further changes down the road.”

Salinger: “What remains to be seen is whether the courts will accept the less structured approach.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu, or Michael Salinger, 617-353-4408, salinger@bu.edu

Comcast/NBC deal scrutinized

Dick Taffe — Fri, 12 Mar 2010 21:34:01 +0000

Federal regulators insist they’ll keep a close eye on the proposed merger of Comcast, the country’s biggest cable-TV operator, and NBC Universal, with its vast content-production empire. Law Professor Keith Hylton, an authority on antitrust law, says the feds need to make sure the merger won’t crush competition or harm consumers.

“But the government should try to make sure that the conditions imposed on the merger do not reduce the potential benefits to consumers.”

Contact Keith Hulton, 617-353-8959, knhylton@bu.edu