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Antitrust in 60 Seconds: Tying and Bundling

Matthew Lane


The 60-Second Read:
A tying arrangement happens when a seller requires a buyer to buy a second product when they buy the first, or at least has the buyer agree not to buy the second product anywhere else. Bundling is when multiple products are packaged and sold together. Both are treated the same under antitrust law. Antitrust law is concerned with sellers who leverage power in one market to gain power in another market. Antitrust law’s restriction on tying has changed substantially over the years. Tying remains per se illegal, meaning that merely engaging in the behavior is enough to vi...

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The Disruptive Competition Project (DisCo) explores how technology and innovation intersect with cutting-edge business, competition, and policy questions. DisCo experts focus on how disruptive change in the modern economy influences policy choices around technology both nationally, and internationally. Learn more

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The Trade-Offs in Sen. Warren’s Plan: Strict Separation Has Costs

There are now several proposals that include a strict structural separation rule in the tech industry (e.g. Sen. Warren’s proposal). These proposals would mean a complete bar on many types of acquisitions that are currently permissible. While much has been written on these proposals, it would be useful to provide some trade-off analysis examining the strict separation rule as a policy preference.

· April 15, 2019

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