Predatory Innovation: The Definite Need for Legal Recognition
21 SMU Sci. & Tech. L. Rev. 19
56 Pages Posted: 13 Jul 2017 Last revised: 21 Oct 2018
Date Written: July 1, 2017
The antitrust community is increasingly interested in digital markets. Most of the existing body of research suggests that such markets require a reassessment of antitrust law key concepts. There is little-published literature, however, dealing with the new types of anti-competitive strategies implemented in these markets.
This article seeks to substantiate the value of the notion of predatory innovation — which the author defines as the alteration of one or more technical elements of a product to limit or eliminate competition. It describes all practices that, under the guise of real innovations, are anticompetitive strategies aimed at eliminating competition without benefiting consumers.
The jurisprudence has not yet generalized the etiquette of predatory innovation and this absence of a dedicated legal category leads judges and authorities to create numerous type I and II errors. For that reason, the development of a dedicated legal regime is a necessity which must be promptly answered.
This article proposes to portray all practices that can and should be condemned as predatory innovation. In substance, it questions what predatory innovation is and exposes the multiplicity of these practices as well as their frequency.
Keywords: antitrust, innovation, predatory innovation, high-tech, platforms, algorithms, open system, closed system
JEL Classification: K21
Suggested Citation: Suggested Citation