Innovation Under Section 2 of the Sherman Act
Antitrust Law Journal, Forthcoming
44 Pages Posted: 6 Apr 2021 Last revised: 24 Nov 2021
Date Written: November 1, 2021
Antitrust cases, including recent complaints filed against dominant technology platforms, have alleged conduct that harms innovation. Section 2 of the Sherman Act is sufficiently broad to address conduct that harms innovation, but courts have little experience adjudicating such allegations. This article briefly reviews the economics literature regarding the effects of market power on innovation incentives. We identify circumstances in which structural conditions warrant a presumption that anticompetitive conduct by a dominant firm is likely to harm or promote innovation and describe various ways in which consideration of likely innovation effects might support finding an antitrust violation or provide a defense of otherwise anticompetitive conduct.
Keywords: Innovation, antitrust, Sherman Act, monopolization
JEL Classification: K21, L41
Suggested Citation: Suggested Citation