Sunday, May 31, 2009

Europe and Antitrust

I have been grossly holding this rather simplistic view that Europe and America has a fundamental difference in which each country approaches anti-trust.  Europe goes after "the big" or "bad" company (Microsoft in many cases) to hold interests of other companies -- in a way clip the feathers of the bird that is flying too high so competitors can participate in the market.  US on the other hand has historically looked at antitrust to ensure that there is no dominant player with extraordinary market power.  One stifles competition, the other protects customers or end-users.  This week Economist cites the paper.  It brings up a couple of good points such as -- with less stringent anti trust laws are more likely to be implemented.  The article mentions that n US there is some sentiment expressed to move towards the eastern way of managing antitrust which is to go after big companies.  This bothers me.  The fact that we got a Microsoft and Apple and Intel in US and not in Europe is for a reason.  Many reasons, in fact.  And antitrust is one component of how things played out.  I wish the policy makers understand that.  If there is one Europeon model that interests me - although I admit I don't know much about it is Swiss model.  It seems lately it has gone through some review/changes/considerations.  I need to do some more digging to find that out.

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