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#261 Can Demanding Price Parity Harm Competition? The MFN Paradox

#261 Can Demanding Price Parity Harm Competition? The MFN Paradox

FromOur Curious Amalgam


#261 Can Demanding Price Parity Harm Competition? The MFN Paradox

FromOur Curious Amalgam

ratings:
Length:
22 minutes
Released:
Feb 19, 2024
Format:
Podcast episode

Description

When are MFNs good and when are they bad? A "most favored nation" (MFN) price requirement ensures that a buyer receives the lowest price that a seller is offering to other buyers. Under U.S. antitrust law, such MFNs are typically viewed as a procompetitive outcome of price bargaining between parties. But recently, the use of MFNs by Amazon's internet retailing platform has been challenged as an anticompetitive business practice. In this episode, Alicia Downey and Barry Nigro talk to economist Tasneem Chipty about the potential competition concerns raised by MFNs generally and platform MFNs specifically. Listen and learn in what circumstances most favored nation requirements might raise antitrust red flags. With special guest: Tasneem Chipty, Managing Principal, Chipty Economics Related Links: Tasneem Chipty, "Platform MFNs: Can Asking for the Lowest Price Discourage Competition?", Pricing Conduct Committee Newsletter (ABA Antitrust Law Section Jan. 9. 2024) Hosted by: Alicia Downey, Downey Law LLC and Barry Nigro, Fried, Frank, Harris, Shriver & Jacobson LLP
Released:
Feb 19, 2024
Format:
Podcast episode

Titles in the series (100)

Our Curious Amalgam explores topics in antitrust, competition, consumer protection, data protection, and privacy law around the world with leading experts in those areas. It is an amalgam because it is a group of diverse topics all in one place. It is curious because it gets the experts and asks them in-depth questions.