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Monopoly issues in high technology-based industries

David J Teece
Director, Institute of Management, Innovation and Organization, University of California, Berkeley, United States of America

Abstract

In this article, taken from his recent research into the application of antitrust analysis to high-technology industries-particularly information technology (IT)-David Teece argues that applying antitrust policy to some high technology industries may serve neither the industry nor the consumer. Indeed, it has to potential to cripple the innovation process. Characteristics of the IT industry that challenge the application of traditional antitrust policies are reviewed. Some of these characteristics may support arguments in cases for exemption from trade practices acts or other anti-competitive legislation. Teece argues further that a re-evaluation of the utility of antitrust legislation must take into account insights into market behavior coming out of recent innovation studies.

Keywords

antitrust, information technology (IT), trade practices, monopoly regulation, innovation management, market behaviour



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