Title
Standard Setting and Exclusionary Conduct: The Role of Antitrust in Policing Unilateral Abuses of Standard-Setting Processes
Author
M. Sean Royall
Date
1/01/2005
(Original Publish Date: 2004)
(Original Publish Date: 2004)
Abstract
Industry standards are pervasive throughout our economy and provide a powerful engine for change and progress in many markets. By and large, it would appear that the power of industry standards has been directed to productive and efficient ends, with enormous benefits flowing to consumers. Among other things, industry standards have dramatically increased the extent of product compatibility and interchangeability; facilitated the globalization of markets; sped the development and worldwide implementation of new technologies; opened up markets to the potential for new entry, often on a smaller scale than might be necessary absent widely adopted industry standards; and helped to cultivate intense price competition and, in turn, intense efforts to maximize efficiency and lower costs. Although this is not always the case, industry standards are often set through the collaborative efforts of multiple market participants working under the auspices of a standard-setting organization or consortium. Broad participation in such a consortium can add tremendous value to the standard-setting enterprise. The collective nature of industry standard-setting activities can also raise antitrust issues, however.
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