Competition law and innovation: technological integration

Schmidt, Hedvig (2011) Competition law and innovation: technological integration. In, Anderman, Steven and Ezrachi, Ariel (eds.) Intellectual Property and Competition Law: New Frontiers. Oxford, GB. Oxford University Press, pp. 187-208.

Abstract

This chapter considers the different approaches to technological tying in the EU and US. It outlines the current case law on tying and the Commission Guidance on Article 82 focussing in particular on the specific case of technological integration. The chapter demonstrates, by
distinguishing between contractual tying and technological integration, that to promote and protect innovation it is necessary to adopt a more flexible approach to technological integration. A comparison is made with US case law, where the courts have adopted a more positive approach toward technological integration in particular and to tying in general in the US DoJ Report on Section 2 Sherman Act. The chapter also analyses the recent Microsoft cases in both the EU and the US will assess the consequences to innovation arising through the different approaches to technological integration. It concludes by identifying a new approach to technological integration that will both, consider the potential harm to competition that technological integration may cause, and the necessity to protect and promote innovation through product development and technological integration.

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Contributors

Author: Hedvig Schmidt

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