Hundred Years Rule of Reason versus Rule of Law

Abstract

This is one out of a bundle of essays on the economics of antitrust. It argues that the traditional rule-of-reason approach to the assessment of business conduct erodes the predictability of law enforcement and, as a consequence, the legal certainty of the business community. As the pro- and anti-competitive effects of conduct can hardly be estimated with any degree of precision, business people do not know any more whether or not what they do is legitimate. This is a drawback of competition policy that should not be swept away under the carpet as easily as is often done. The rule of reason of antitrust is an enemy of the rule of law of modern society.

Keywords: antitrust, rule of reason, legal certainty

JEL Classification: K21, L40