Abstract and Keywords
Network industries, including the Internet, have shown significant growth, substantial competition, and rapid innovation. This chapter examines antitrust policy towards network industries. The discussion considers the policy implications of various concepts in the economics of networks: natural monopoly, network economic effects, vertical exclusion, and dynamic efficiency. The analysis finds that antitrust policymakers should not presume that network industries are more subject to monopolization than other industries. Deregulation and the strength of competition in network industries have removed justifications for structural separation as a remedy. Also, the chapter argues that deregulation and competition have effectively eliminated support for application of the essential facilities doctrine. Antitrust policy in network industries should be guided by considerations of dynamic efficiency.
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