ANTITRUST AND THE INTERNET STANDARDIZATION PROBLEM

Mark A Lemley

1/01/2005
(Original Publish Date: 1996)

This article evaluates the economics of the Internet and Internet-related software markets, which are heavily driven towards standardization. It suggests that a traditional section 2 antitrust analysis will fail to effectively regulate competition in such a market, particularly if it is directed at structural relief. Instead, the article recommends that section 2 play a limited role in regulating conduct in a standards competition. The article also suggests that private standard-setting may play a procompetitive role in the Internet context, and that section 1 should be relaxed in order to permit such joint activity (within certain limits).