Innovation Economics For Antitrust Lawyers: Webinar Synopses

Compass Lexecon economists John Davies, Rameet Sangha, Kadu Prasad, and Daniele Condorelli spoke at the 4^th Innovation Economics (virtual) conference for antitrust lawyers, discussing the implications of the latest developments in digital and technology on competition law and economics in a series of webinars co-organized by Concurrences and King’s College London.

5G, Internet of Things, SEPs

Kadu Prasad highlighted challenges raised by 5G technology and the Internet of Things concerning the wide range of specifications and different uses of patents. She explained two opposing views on the meaning of fair and reasonable in relation to 5G, which is more economically sound, and the optimal valuation methods for 5G patents and the Internet of Things.

Panel speakers:

• Kirti GUPTA | Vice President - Technology & Economic Strategy, Qualcomm, San Diego
• Douglas LAHNBORG | Partner, Orrick, Herrington & Sutcliffe, London
• Monica MAGNUSSON | VP, IPR Policy, Ericsson, Stockholm
• David MATTHEW | Director of Economics, Ofcom, London
• Kadambari PRASAD | Vice President, Compass Lexecon, London
• Moderator: Renato NAZZINI | Professor, King’s College London

Self-Preference: The Gatekeeper Role

Rameet Sangha considered the rationales for the objective justifications or pro-competitive effects of self-preferencing, using marketplaces, i.e. one platform that connects consumers with retailers, as an example. She stated that the nature of the pro-competitive rationale will depend very much on the nature of the platform in question, and what the precise theory of harm is and suggested that an ex-ante code of conduct might be more flexible and appropriate for these industries.

Panel speakers:

• Rod CARLTON | Partner, Freshfields, London
• Niamh DUNNE | Assistant Professor, London School of Economics
• Giulio FEDERICO | Head of Unit - CET, DG COMP, Brussels
• Gönenç GÜRKAYNAK | Partner, ELIG Gürkaynak Attorneys-at-Law, Istanbul
• Rameet SANGHA | Senior Vice President, Compass Lexecon, London
• Moderator: William E. KOVACIC | Professor, King’s College London| Non-Executive Director, CMA, London | Professor, George Washington University

App Developers: The Connect Economy

John Davies highlighted that market definition of the app economy matters: there is a duopoly in the operating system that is then matched by a duopoly in the app stores. He explains the different prices charged by the app stores and considers the two-sided nature and evidence of dominance in the market.

Panel speakers:

• Oliver BETHELL | Director - EMEA Competition, Google, London
• Harry CLARKE | Associate General Counsel, Spotify, New York
• John DAVIES | Executive Vice President, Compass Lexecon, London/Paris
• Martin D’HALLUIN | Vice President, Associate General Counsel - Antitrust, News Corp, New York
• Nigel PARR | Partner, Ashurst, London
• Moderator: Liza LOVDAHL GORMSEN | Director, British Institute of International and Comparative Law (BIICL), London

Platform: The Envelopment Strategy

Daniele Condorelli elaborated on the concept of platform envelopment, popularised in 2011 by Eisenmann, Parker and Van Alstyne: “a provider in one platform market can enter another platform market, combining its own functionality with the target’s in a multi-platform bundle that leverages shared user relationships.” Thus, through bundling, envelopers capture share by foreclosing an incumbent’s access to users, exploiting the network effects that previously protected the incumbent.

Panel speakers:

• Daniele CONDORELLI | Associate Professor of Economics, University of Warwick, Academic Affiliate at Compass Lexecon
• Alexandre DE CORNIERE | Assistant Professor, Toulouse School of Economics
• Amelia FLETCHER | Professor, University of East Anglia
• Andreas MUNDT | Chairman, Bundeskartellamt, Bonn
• Mike WALKER | Chief Economic Adviser, Competition and Markets Authority, London
• Moderator: Richard WHISH QC (Hon) | Professor, King’s College London