Regulation of the Market for Standard Software: Waving Goodbye to 'Efficiency'?

Posted: 28 Jul 2005

See all articles by Dirk A. Zetzsche

Dirk A. Zetzsche

Universite du Luxembourg - Faculty of Law, Economics and Finance; Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC)

Michael Beurskens

Heinrich-Heine University Duesseldorf - Faculty of Law

Date Written: June 2005

Abstract

The market for standard software shows an inexorable tendency towards concentration. Whereas such a development might be considered efficient due to the market's nature as a natural monopoly, it could also require stronger regulation, similar to other concentrated industries. This paper analyzes to what extent the existing legal frameworks under U.S. and European intellectual property and antitrust law mitigate pro-concentration effects. It characterizes the standard software market as an industry in need of regulation and reconsiders the current efficiency-focused approach in favor of measures that strengthen competition as a source of rivalry. Rather than considering efficiency arguments as "all-or-nothing" justification for otherwise anti-competitive conduct, as under the Chicago School concept, the concept proposed in this paper considers the "efficiency" criterion to merely limit the remedies imposed by adjudicators.

Keywords: market, standard software, regulation, legal frameworks, intellectual property, Chicago School concept, efficiency, antitrust law

JEL Classification: K10, K20, K21, K23, L10, L12, L13, L40, L41, L43

Suggested Citation

Zetzsche, Dirk Andreas and Beurskens, Michael, Regulation of the Market for Standard Software: Waving Goodbye to 'Efficiency'? (June 2005). CBC-RPS No. 0013. Available at SSRN: https://ssrn.com/abstract=747505 or http://dx.doi.org/10.2139/ssrn.747505

Dirk Andreas Zetzsche (Contact Author)

Universite du Luxembourg - Faculty of Law, Economics and Finance ( email )

Luxembourg, L-1511
Luxembourg

HOME PAGE: http://wwwen.uni.lu/recherche/fdef/research_unit_in_law/equipe/dirk_andreas_zetzsche

Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC) ( email )

Universitaetsstr. 1
D-40225 Düsseldorf
Germany
+49 211 81 15084 (Phone)
+49 211 81 11427 (Fax)

Michael Beurskens

Heinrich-Heine University Duesseldorf - Faculty of Law ( email )

c/o Faculty of Law
Düsseldorf
Germany

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