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Hi,
Before starting, see below the results of my attempt to generate a cover for my Green Lantern Hypothesis post using DALL-E 2 in November 2022. The idea was to create a comic book-style image of a CADE official wielding a power ring, but I guess I have failed…
Interesting things have happened in the past few weeks in the antitrust realm. So, in case you missed them, Danny got your back:
European Commission has amended its enforcement priorities in relation to the application of the Article 102 (abuse of dominance) and announced future guidelines for the application of Article 102. This a major policy change and unfortunately I don't know much about EU Competition Law to comment, but Pablo Ibanez Colomo knows:
This initiative is also highly symbolic. It marks the end (if not the end, at least the terminal decline) of the ‘more economics-based approach’ to competition law. The Policy Brief embraces objectives other than consumer welfare. While the new vocabulary will not have consequences as such (words are just words), it is a reliable indicator that times are changing. The new EU competition law is here to stay and will permeate every aspect of policy-making.
The FTC has ordered Illumina to unwind the acquisition of Grail. Illumina has appealed before federal courts. Top dogs are chasing Illumina for this deal and I praise the company for defending it fiercely (or making lawyers go through sleepless nights).
Commissioner Gustavo Lima wants to hear the market about the Itaú-Rede case.
“Some men just want to watch the world burn”. I joked about the commissioner a few times in this newsletter, but I’m reaching the conclusion that he is some kind of genius. He is exploring the limits of what CADE can do and nobody says something is wrong. Probably I was wrong all the time.
LATAM Airlines Brasil is being investigated because its CEO announced the company will focus on rentability instead of market share. LATAM is a listed company so likely competitors study its behavior considering not only announcements but mostly data it is required to disclose. How CADE will assess if the conduct caused anticompetitive harm? This is not the best use of CADE’s limited resources, but Barreto knows what is best (?).
The CMA provisionally finds that the Microsoft-Activision deal will not harm competition in the UK. It is always interesting to see a authority changing its opinion in light of new evidence.
Outside the antitrust realm…
The Brazilian Government proposed a Draft Bill that is, in part, a copycat of the Digital Services Act. It proposes to regulate digital platforms (mainly social media, research engines, messaging apps and streaming platforms) in several fronts like moderation, advertising and “platform rents”. It has been proposed as a substitute for the “Fake News” Draft Bill, approved by the Brazilian upper house, expanding its scope. The Brussels Effect is real and soon we may have our DSA and DMA… I hope these legislations help us to foster innovation and be the birthplace of the greatest tech companies in the world… like Europe.
On a related note, Noah Smith says that Europe is becoming more irrelevant. Part of the problem is that Europe is not embracing advances in technology and adopting a “regulate-first” approach.
So that’s it. I admit that I have ranted considerably in this post, but I know you like my style.
*Floats away*
Danny
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