The Limits of the ‘More Economic’ Approach to Antitrust

Abstract

The ‘more economic’ approach to antitrust recites two mantras: first of all, that antitrust analysis should only consider the effects of a practice, and secondly, that only the economic effects of a practice are relevant. The first mantra is impossible to satisfy in practice, thus the ‘more economic’ approach to antitrust has relapsed into formalism. Other tools than effects analysis are needed in antitrust enforcement, such as per se rules and an examination of the intentions of the undertakings concerned. The second mantra implies usurping legislation enacted for other purposes and is based on a naturalistic fallacy. Other objectives than economic efficiency should count in antitrust enforcement as well.