Economists INK: Spring 2019
This issue discusses the Federal Trade Commission (FTC) approval of the Fresenius and NxStage merger, class action lawsuits with two-sided markets, and the role of complementarities in hospital merger review. Dr. Mirrow discusses the split decision by the FTC in its approval of the Fresenius/NxStage merger, including the evidence considered by both the majority and dissenting Commissioners for evaluating the likelihood of vertical foreclosure . Dr. Stoner discusses the issues facing the Supreme Court in Apple, Inc. v. Robert Pepper et al. Dr. Stoner considers how two-sided markets, including the relationship between Apple and app developers, may complicate any simple Illinois Brick test. Dr. Fowdur and Dr. Argue discuss the role of complementarities in hospital merger review. Dr. Fowdur and Dr. Argue indicate that a qualitative assessment of the presence of complementarities and their potential impact on post-merger prices could provide meaningful insights in both horizontal and cross-market transactions.