The Lessons of Covisint: Regulating B2Bs Under European and American Competition Laws
71 Pages Posted: 19 Jun 2010 Last revised: 13 Sep 2014
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The Lessons of Covisint: Regulating B2Bs Under European and American Competition Laws
The Lessons of Covisint: Regulating B2Bs Under European and American Competition Laws
Date Written: January 2002
Abstract
Focusing on Covisint, the article describes how regulatory officials in the United States, Germany, and the European Commission have chosen to exercise extraordinary flexibility in allowing Covisint (and other B2Bs) to form and undertake broad industry-wide collaborations. Based on Covisint's short history, the article argues that Covisint's promises of good behavior notwithstanding, the risks and temptations of harmful exclusionary and collusive behavior are formidable,especially when the B2B evolves from an E-business exchange to a 'global solutions provider', as Covisint did. We conclude that B2Bs whose members have collective market power must be watched carefully. Post-authorization shifts in focus from serving the market for marketplaces to competition in the sale of industry input goods and services should immediately raise red flags for the European competition and American antitrust regulators.
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