Resisting the Long Arm of Criminal Antitrust Laws: Norris v The United States

This note analyses the judgment of the House of Lords in the case Norris v USA , and argues that its ruling on whether mere price-fixing can amount to a common law conspiracy to defraud will have a significant effect on both US and UK criminal anti-cartel enforcement. In particular, the potential negative impact of the judgment on the future viability of the UK Cartel Offence is highlighted.     

FORENSIC ECONOMICS: AN INTRODUCTION WITH SPECIAL EMPHASIS ON PRICE FIXING

This paper aims at explaining accepted methods of forensic analysisand how forensic economics is used in the context of competition-lawenforcement. Illustrations are drawn from ancient and modernantitrust cases involving price-fixing allegations. The statedgoal of antitrust laws of most nations is deterrence. Optimaldeterrence requires that cartel penalties be based on multiplesof economic injuries. Yet, antitrust authorities are typicallyreluctant to calculate fines on the basis of damages becauseof perceived analytical challenges or because the fact-finderslack needed economic education. However, reasonable estimatesof damages can often be quickly prepared using simpler methodsthan econometric modeling. More often than not, alternativeestimates of cartel overcharges tend to be mutually supportive.The reluctance of antitrust authorities to base fines on damagesseems to indicate an abundance of caution.     

Newspaper Coverage of Corporate Price-Fixing

Among the reasons common corporate crimes such as price-fixing lack the "brimstone smell" of common street crimes such as burglary is that newspapers fail to provide frequent, prominent, or criminally oriented coverage of corporate crime. This certainly was true of newspaper coverage of the heavy electrical equipment antitrust cases of 1961. Replicative analysis reveals that this also was true of newspaper coverage of the folding-carton industry antitrust cases of 1976. Reasons for this continued lack of coverage are discussed, including the diffuse harm characteristic of price-fixing, the general lack of recognition that corporations are juristic persons capable of criminal deviance, and the disinclination of large organizations to link other large organizations with criminality.     

Trade marks plus? the role of trade marks in the global economy and the danger of over-protection

This article examines the economic role of the trade mark, both as a structuring device and as a means of adding value to products. It shows how its role as a flexible structuring device that provides a distinct focus for goodwill derives from the special meaning of the term “origin” or “trade origin” in trade mark law, this being what a trade mark is supposed to indicate. Firms can control the identity that a trade mark signifies and confers on the products with which it is used without being tied to any particular set of production arrangements. This article also considers how goodwill can be a source of economic benefit both through reducing transaction costs and, in some cases, through adding value to products. This article then examines the economic rationale for the legal protection of trade marks and shows how this is analogous to the rationale for awarding property rights over tangible resources and different from that for other forms of intellectual property right. The pressure to expand the legal protection of stronger trade marks is explored and it is accepted that there is an economic case for doing so. However, it is argued that the additional protection must be carefully calibrated through definitions that take account of its economic rationale and avoid the danger of over-extending it. In particular, this danger of over-protection arises from making a false analogy between stronger trade marks and the kind of intangible output that is the subject of the other forms of intellectual property right.     

THE GENESIS OF CARTEL INVESTIGATIONS: SOME INSIGHTS FROM EXAMINING THE DYNAMIC INTERRELATIONSHIPS BETWEEN U.S. CIVIL AND CRIMINAL ANTITRUST INVESTIGATIONS

The U.S. Department of Justice has prosecuted over 1600 criminalantitrust (price-fixing and related) cases since 1970. Yet weknow precious little about the true genesis of these investigations.This paper uses the vector-autoregression methodology to examinethe dynamic interrelationships between the various criminaland civil antitrust enforcement variables. A key result is thatthe number of criminal prosecutions increases in the years immediatelyfollowing an increase in the number of civil cases, suggestingthat merger reviews and other civil investigations may alertthe antitrust authorities to criminal antitrust activities.To the best of my knowledge, this is the first econometric analysisthat demonstrates the quantitative size of this effect and thetime lags in the relationship. Other findings include importantdynamic interrelationships between grand jury investigations,the number of individuals and corporations prosecuted, and criminalcases, indicating that information unearthed during a givencriminal investigation and prosecution often reveals informationabout other conspiracies leading to future investigations andprosecutions. Finally, the number of criminal cases prosecutedincreases following an economic downturn. We relate this increaseto the literature, which points to cartel instability duringeconomic downturns.     

Dagher redux: searching for the missing pieces

The most relevant question for any joint venture is, when does the relationship become a jointventure and not simply a price-fixing cartel? With respect to this question, this Article juxtaposes Texaco, Inc. v. Dagher, 126 S. Ct. 1276 (2006), against years of contrary precedent. In Dagher, the Court altered the seemingly settled foundation of antitrust law by changing its view on past holdings and abandoning the ancillary effects doctrine. The Article provides an outline of key holdings prior to Dagher, as well as a discussion of the issues that can arise as joint ventures are formed. Additionally, the authors examine how the decision altered the foundation of joint venture law in the United States. In particular, the Article exposes several important antitrust concerns relating to joint ventures that the Supreme Court did not address in Dagher. Perhaps the most perplexing issue of Dagher is whether the venture at issue would have survived analysis under the Federal Trade Commission's "continuum" approach.     

美国反托拉斯法上的行业协会

行业协会在促进经济发展的同时,为了成员的利益,往往实施各种限制竞争的行为,如固定价格、分割市场、联合抵制、标准化活动、禁止成员发布广告等,这些行为本质上属限制竞争协议的一种类型,受反垄断法调整。美国反托拉斯法上主要适用本身违法规则、合理规则、快速审查规则进行分析。由于行业协会具有特殊的公共职能,比一般的限制竞争协议具有更多合理因素,因而更多地适用合理规则,而本身违法规则的适用范围则有限。     

Yield and turnover of illicit indoor cannabis (Cannabis spp.) plantations in Belgium

In prosecution, Belgian judiciary currently uses outdated yield figures (28.1g per plant, sold at € 3/g at grower level) for fining illicit indoor cannabis plantations. Using state-of-the-art cultivation techniques, our growth experiments showed that yield is better expressed in g/m(2) cultivated surface area rather than in g per plant, and that yield varies significantly between different cannabis strains. It was found that the lower-bound of the one-sided 95% confidence interval of the yield of an indoor cannabis plantation can be set at 575 g/m(2). Prices and pricing mechanisms were investigated using interviews with respondents selected through snowball sampling. Results reveal that (i) the Belgian cannabis market chain is highly complex; (ii) unit prices are predominantly determined by transaction sizes; but also (iii) a set of product- and socially-related price-fixing mechanisms have an equally important role. At grower level, respondents reported prices for 1 g of dry cannabis buds to range € 3.00-4.25.     

COMPETITION POLICY IN CHINA AND ITS RELEVANCE TO SMES

Competition policy has great relevance to all the firms in any economy. Even though it is unlikely that small and medium-sized enterprises (SMEs) have enough market power to constrain competition through a misuse of such power, they may still face prosecution if they are involved in a boycott of competitors or suppliers, price-fixing, output-restriction and other monopoly agreements. This article discusses antitrust issues pertaining to SMEs with a focus on China’s Anti-Monopoly Law (AML) and its implementation rules. Contrary to the popular view that SMEs benefit from competition laws, evidence shows that they are reluctant to get involved in antitrust litigation against large firms partly because of the high legal costs involved. There is an urgent need to promote an awareness of antitrust compliance in China and to educate SMEs about the need to avoid breaching the new antitrust law and its associated regulations. In the meantime, SMEs should take full advantage of the antitrust laws to fight against the abuse of market dominance directed at them, and to gain equal opportunities to market access.     

美国“301条款”与WTO争端解决机制的互动及其前景预测

本文通过对美国贸易法“３０条款”的历史和现实研究,揭示了其对 ＷＴＯ 下争端解决机制的催生作用,同时通过法律、经济、政治、哲学等方面的分析,得出如下结 论：短期内美国不可能废除３０１条款;美国实施３０１条款会更加谨慎;３０１条款下的单方 面制裁更多地会被作为威慑力量,而并非实际运用。     

An Economic Analysis of a Swedish Environmental Liability Case

A High Court case illustrates Swedish legal reasoning. The case extends the use of strict liability, although the main liability rule is negligence. The aim of the paper is to show the usefulness of the economic analysis in a practical case. The case concerns liability for damages caused by a leaky, hot-water pipe. The defendant maintained that it should not be held liable because it had not acted negligently, and the district court and the court of appeals supported the defence. Nevertheless, the High Court decided on strict liability. The High Court used a line of argumentation that, partly and implicitly, may have been economically correct. However, the precedence was most limited and unclear. Given an explicit goal of economic efficiency, the precedence would, in this simple and straightforward case, be that strict liability should prevail where the cause is unilateral and the injurer is able to cover and/or insure the loss.     

Economic structure and vulnerability to organised crime: Evidence from Sicily

The economic analysis of organised crime suggests that some economic activities are particularly vulnerable to penetration by criminal organisations. This paper provides an analysis of the structure of the Sicilian economy and shows that, when compared with other Italian regions, it is characterised by a disproportionate presence of such activities. In particular, the economy of Sicily appears characterised by: (i) a large dimension of traditional sectors, such as the Construction sector, which also has a strong territorial specificity; (ii) a large presence of small firms; (iii) a low level of technology; (iii) a large public sector. The joint presence of these features creates fertile soil for the typical activities of organised crime, such as extortion and cartel enforcement. Hence, we propose an alternative explanation of the persistence of organised crime with respect to explanations based on cultural and social factors.     

Private Law and Housing Justice in Europe

This article explores the different meanings of the right to housing in Europe in public and private relations with housing providers. In light of the fundamental right to housing's meaning in the case law of the European Court of Human Rights and the Court of Justice of the European Union, we offer a new reading of the CJEU judgments that have hitherto been heralded as extending the social dimension of EU (private) law. We submit that the emphasis on economic and procedural rights risks further ‘economisation’ of housing relations in Europe. While the possibilities to grant direct horizontal effect to the right to housing in EU law currently offer limited potential to counter this trend, private law provides part of the framework for a further balancing of social and economic elements in housing cases. Accordingly, we call for a debate on the specific aspects of horizontal relationships in the complex system of housing justice.     

Competition policy: consequences of restrictive trade practices and price-fixing provisions for medical practitioners in Australia and New Zealand

Competition laws have only applied to many participants in the health care industry in Australia and New Zealand since the mid 1990s. Since then, the Australian Competition and Consumer Commission has considered a number of applications by medical practitioner associations and private hospitals to authorise potentially anti-competitive conduct, while the New Zealand Commerce Commission has successfully prosecuted a group of ophthalmologists. Amongst medical practitioners, however, there is still confusion and misunderstanding concerning the type of conduct caught by the Australian Trade Practices Act 1974 (Cth) and the New Zealand Commerce Act 1986 (NZ). This is of serious concern given the substantial penalties associated with price-fixing and restrictive trade practices. This article examines the provisions of these Acts most relevant to medical practitioners as well as a number of determinations and judicial decisions. To provide practical assistance to medical practitioners, the key lessons are extracted.     

The Architecture of Drug Trafficking: Network Forms of Organisation in the Colombian Cocaine Trade

For much of the past twenty-five years, the US-led war on drugs has been premised on a fundamental misunderstanding of Colombian drug trade. Instead of being run by a handful of massive, price-fixing ‘cartels’, the Colombian drug trade, then and now, was characterized by a fluid social system where flexible exchange networks expanded and retracted according to market opportunities and regulatory constraints. To support this interpretation, I draw on primary and secondary source data I collected in Colombia and the US, including interviews with several dozen hard-to-reach informants. I analyze these data to analyze the organisational form and functioning of ‘Colombian’ trafficking networks, focusing on how these illicit enterprises communicate, coordinate their activities, and make decisions, with an eye towards deflating some of the more persistent myths that have grown up around these transnational enterprises.     

论后现代主义思潮对我国经济法学研究的冲击与影响

后现代主义作为西方发达国家的一种泛文化思潮,已给中国经济法学研究带来了理论解释的任意性、研究范式的多元化、研究方法的主观性和权利话语的非中心化诸多负面影响,但是从另一方面来说,后现代主义给我们提供的反思维度和批判精神又是具有积极意义的。辨证地看待后现代主义思潮对经济法的影响,充分认识其负面效应,适当借鉴其批判精神,是经济法学人对待后现代主义思潮的应有态度。     

Corruption and NIC development: A case study of South Korea

The debate on corruption and economic performance has swung from one position to the other over the decades. During the 1960s the school of thought associated with modernisation theory argued corruption was often positively correlated with economic growth. (Huntington, 1968; Leff, 1964) Subsequently corruption came to be viewed as inimical to growth by undermining the basis of stable, rational public policies and allocation through markets (Rose-Ackerman, 1978; Theobald, 1990), the situation in which it is still largely viewed today, particularly following the “corruption eruption” of the 1990s (Alam, 1989; Leiken, 1997; Naim, 1995). East Asian countries stand as important case studies of the role of corruption in industrialisation: this article focuses on South Korea. Firstly corruption coexisted with development. Secondly corruption in South Korea was at different times functional, detrimental, irrelevant and relevant, but always present during rapid industrialisation. This is not of course to argue corruption fuelled growth nor to recommend it as a plausible policy option for developing or transitional economies, since it is evident that in many cases corruption is harmful to growth. This article seeks to understand the role corruption played in Korean economic development to better understand the phenomenon of corruption itself. This revised version was published online in July 2006 with corrections to the Cover Date.     

Judicial Exceptions to the Free Provision of Services

Abstract: Recent case-law of the Court of Justice on general interest exceptions to the free provision of services has indicated a flexible approach to general interest exceptions involving moral or ethical issues. In contrast, where the general interest exception is relied on in a case which demonstrates predominantly economic issues, it is subject to strict scrutiny, in particular, with reference to the principle of proportionality. The article analyses the Court's case-law and tries to deduce the criteria which now govern the Court's position. It also highlights difficulties which this two-tier approach may excite. The position of the Court of Justice reflects the lack of homogeneous European ethical and moral standards, but it also underlines the predominantly economic character of European integration to date. It is submitted, nevertheless, that divorcing the economic criteria for integration from general ethical considerations will prove an extremely difficult, if not fruitless, task.     

船舶融资租赁的风险及防范

金融危机为中国船舶融资租赁业提供了发展机遇。一是在金融危机情况下,银行惜贷和企业融资难度加大扩大了航运企业与金融租赁公司合作的机遇;二是中国政府推出的四万亿经济刺激计划为金融租赁业带来了历史性的发展机遇。可见,巨大的市场潜力和潜在需求为船舶融资租赁业发展带来了良好机遇,但与此同时,也应清楚认识船舶融资租赁中的种种风险。首先简单介绍船舶融资租赁的概念,通过一个图标详细列举船舶融资租赁涉及的各方当事人;其次对船舶融资租赁中的可能遇到的种种风险逐一分析,然后在此基础上提出防范上述风险的具体对策,并对中国立法提出相关建议。     

Individual Dismissals in Europe and the United States: A Model on the Influence of the Legal Framework on Firing Costs

In this article, we present a model of individual dismissals based on the workers' right to file a suit against their employer arguing that the dismissal is unjustified or unfair. The model is a standard pre-trial bargaining game between a firm and a worker. We study two cases: when the law states the severance pay for unfair dismissal (the European case), and when judges can decide freely on the compensation to be paid to the worker (the American case). The model provides some guidelines for Labour Law reforms. In the European case, a decrease in the severance pay for unfair dismissals fixed by law will decrease the severance pay offered by the firm, and only under some assumptions will decrease the expected firing cost and will increase the settlement probability. In addition, the transition from the European to the American case is likely to increase the probability of settlement (and to decrease it in the opposite case) with ambiguous effects on agreed severance pay and expected firing costs.