The Vertical Dimension of Cooperative Competition Policy

Abstract

Competition policy in the United States is formed at multiple levels, and the sovereigns that formulate this policy often clash with each other. A phalanx of state laws must be reconciled with federal policies designed to ensure a nationwide common market. The United States uses two bodies of law to reconcile federalism with a national policy favoring interstate competition. These two approaches - antitrust immunity and the dormant commerce clause - are antagonistic in practically every important detail. Whereas antitrust immunity protects state and local freedom to restrain trade, the dormant commerce clause adopts precisely the opposite solution of protecting a national interest in free trade. The tension between these bodies of law parallels the fundamental dilemma of international competition policy. The American experience in coordinating its conflicting sources of competition policy therefore informs comparable efforts in the European Union and on the world stage.

Keywords: Antitrust, Competition Policy, Trade

JEL Classification: K21