When Should We Look Out for the Little Guy? An Examination of the Inconsistencies in Antitrust Enforcement of Monopsony Power in Canada and the United States

Canadian Competition Law Review, VOL. 35, NO. 2, 32-53

USC CLASS Research Paper No. 23-6

15 Pages Posted: 18 Jan 2023 Last revised: 14 Jul 2023

See all articles by Susan Hutton

Susan Hutton

Independent

Naime Isaj

Independent

Laura Rowe

Independent

D. Daniel Sokol

USC Gould School of Law; USC Marshall School of Business

Date Written: December 15, 2022

Abstract

Enforcement of competition/antitrust laws regarding the exercise of market power in respect of upstream markets (monopsony/oligopsony power) has been inconsistent in both Canada and the United States. This paper provides an overview of the competition/antitrust laws in Canada and the United States and how they have addressed (or not addressed) monopsony power both in legislation and in case law, and seeks to identify the interests that are protected by various enforcement rationales. An apparent pattern is that large suppliers seem not to be afforded the same degree of protection against monopsony as small suppliers—a pattern that is at odds with monopoly enforcement in Canada and the United States. However, this pattern is not consistently articulated or applied. The authors call for clarification by law-makers and enforcers as to what interests they are seeking to protect from the exercise of monopsony power, and when they will intervene to do so.

Keywords: antitrust, competition law, monopsony, labor

JEL Classification: K21, K31, L12

Suggested Citation

Hutton, Susan and Isaj, Naime and Rowe, Laura and Sokol, D. Daniel, When Should We Look Out for the Little Guy? An Examination of the Inconsistencies in Antitrust Enforcement of Monopsony Power in Canada and the United States (December 15, 2022). Canadian Competition Law Review, VOL. 35, NO. 2, 32-53, USC CLASS Research Paper No. 23-6, Available at SSRN: https://ssrn.com/abstract=4304270 or http://dx.doi.org/10.2139/ssrn.4304270

Susan Hutton

Independent ( email )

Naime Isaj

Independent ( email )

Laura Rowe

Independent ( email )

D. Daniel Sokol (Contact Author)

USC Gould School of Law ( email )

699 Exposition Boulevard
Los Angeles, CA 90089
United States

USC Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA California 90089
United States

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