The Lessons of Covisint: Regulating B2Bs Under European and American Competition Laws

71 Pages Posted: 19 Jun 2010 Last revised: 13 Sep 2014

See all articles by Thomas Jeffrey Horton

Thomas Jeffrey Horton

University of South Dakota, School of Law

Stefan Schmitz

Orrick, Herrington & Sutcliffe, LLP

Multiple version iconThere are 2 versions of this paper

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.

Suggested Citation

Horton, Thomas Jeffrey and Schmitz, Stefan, The Lessons of Covisint: Regulating B2Bs Under European and American Competition Laws (January 2002). The Wayne Law Review, Vol. 47, No. 4, p. 1231, Spring 2002, Available at SSRN: https://ssrn.com/abstract=1626365

Thomas Jeffrey Horton (Contact Author)

University of South Dakota, School of Law

414 East Clark St.
Vermillion, SD 57069-2307
United States

Stefan Schmitz

Orrick, Herrington & Sutcliffe, LLP

1000 Marsh Rd
Los Angeles, CA 94025
United States

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