The "Monopoly Broth" Theory Is a Recipe for Bad Antitrust Law - SIIA
siia.net
The "monopoly broth" theory lets regulators bundle individually legal business moves into an antitrust violation — and critics say it's a recipe for punishing success rather than protecting competition.
Monopoly Broth TheoryAntitrust LawConsumer Welfare StandardRule of Reason
Theory Briefing
- The 'monopoly broth' theory allows antitrust enforcers to combine individually lawful acts into an illegal monopolization claim, blurring legal lines.
- SIIA argues the theory undermines consumer welfare standards by replacing concrete harm with a vague cumulative-effects test.
- Reviving this approach risks chilling pro-competitive innovation, as firms can't know when normal business conduct crosses a legal threshold.