Re: SkyRiver Files Antitrust Suit Against OCLC

From: Edward M. Corrado <ecorrado_at_nyob>
Date: Thu, 29 Jul 2010 17:59:19 -0400
To: NGC4LIB_at_LISTSERV.ND.EDU
john g marr wrote:
> On Thu, 29 Jul 2010, Susan McHenry wrote:
>
>> Thank you Brian for reminding all of us that this, personal opinions 
>> aside, is whether OCLC violated Antitrust Laws.
>
>  In the words of Isabel Paterson "As freak legislation, the antitrust 
> laws stand alone. Nobody knows what it is they forbid."
>
>  Wikipedia (Monopolization):  "Under long-established precedent, the 
> offense of monopolization under Section 2 [of the Sherman Antitrust 
> Act] has two elements. First, that the defendant possesses monopoly 
> power in a properly-defined market[*] and second that the defendant 
> obtained or maintained that power through conduct deemed unlawfully 
> exclusionary. The mere fact that conduct disadvantages rivals does 
> not, without more, constitute the sort of exclusionary conduct that 
> satisfies this second element. Instead, such conduct must exclude 
> rivals on some basis other than efficiency [e.g predatory pricing]."
> <...>
>
> [* Is a non-profit entity an integral part of a profit-motivated 
> "properly defined market" and can it be considered to have economic 
> rivals, or are the for-profit copy-cats simply taking an independent 
> economic risk at turning a non-profit venture (e.g. soldiering or 
> libraries) into a for-profit enterprise?  How would any non-profit 
> "public" organization survive such arguments as in this suit if not 
> given special protection?]
>
> jgm 
I don't see how a tax status (i.e. non-profit) has anything to do with 
being a monopoly or not. Is OCLC a monopoly in the market that SkyRiver 
describes in the suit? I don't know. However, I believe that OCLC's 
status as a non-profit cooperative* doesn't have a bearing on whether or 
not they are monopolistic.

* Of course, it appears from a first skimming of the complaint, that 
SkyRiver may be challenging the notion that OCLC is really non-profit.

Edward
Received on Thu Jul 29 2010 - 17:58:57 EDT