Showing posts with label antitrust. Show all posts
Showing posts with label antitrust. Show all posts

Saturday, March 9, 2024

Can't see sports, Oscars without channel-bundle subscription you don't want? Let regulators know

Gencraft
I filed a comment today with the Antitrust Division of the U.S. Department of Justice regarding the Disney-Fox-Warner sport streaming deal, and more generally, the anticompetitive practice of streaming television sales with channel-bundling leverage and opt-out subscriptions.


9 March 2024

Dear sir or madam at the Antitrust Division of the U.S. Department of Justice:

I understand you are scrutinizing the Disney-Fox-Warner sport bundling agreement, and you no doubt are sensitive to the situation in televised sport since the recent congressional hearings on sport media rights.

I draw your attention to two of this weekend's top offerings in sport and entertainment, because they are demonstrative of the problem now in the streaming industry—which is to say, for our times, in the television industry.

In sports, this weekend will see a meeting of the top two, closely matched soccer teams in the world contending for the Premier League championship, Manchester City and Liverpool.  NBC owns U.S. TV rights to Premier League matches in the United States.  NBC's practice is to break up matches horizontally, across its many media properties and contractual arrangements, compelling consumers to have to pay for multiple services to follow a single team in a single sport.

The practice is worse still: high-interest matches such as Sunday's are available only with the purchase of subscription bundles to channel packages consumers do not want.  Yes, the match is available from multiple electronic packages, but each is an expensive bundle: Fubo, Sling, DirecTV, and USA on cable television.  There is no one-off purchase option, nor even a one-channel purchase option.  The price of one month on one of these services far exceeds the market value of one match, or even four weekly matches.

This leveraged bundling, compelling consumers to buy what they do not want to get what they do want, especially in a billing format of opt-out subscription renewal, is an anticompetitive practice. It is ironic that Fubo has sued in private antitrust enforcement to stop the Disney-Fox-Warner agreement. Fubo's position seems to be that it wishes to profit in the vertical market from bundling leverage, but does not want providers to profit from the same model in a horizontal arrangement. In entertainment, the Oscars air on ABC Sunday night.  Like NBC in sports, ABC is making this popular program available only through bundled channel services such as Fubo, Sling, YouTube Live, Hulu Live, DirecTV, and ABC on cable television. Again, there is no one-off purchase option, nor even a one-channel purchase option. 

Again, consumers must buy access to content they do not want, again in a billing format of opt-out subscription renewal.  Media watchers such as Vulture advise consumers to purchase a television antenna to see the Oscars on ABC broadcast.  Is it not plain evidence of ABC's anticompetitive practice that in this day and age consumers would have to regress technologically to over-the-air broadcast to avoid paying for what they do not want?  Never mind the fact that old-fashioned broadcasters have substantially dampened their signal power, so that over-the-air reception is not feasible for many Americans, even on the fringes of large markets.

Disney-Fox-Warner argue that they must forge an agreement to meet consumer demand, so their agreement is in the public interest.  They are not wrong.  However, they are right only insofar as you already have permitted an anticompetitive market to exist.  For a player in this market to succeed, it must grow bigger, must exploit horizontal and vertical integration.

The fundamental problem is that the market already is dysfunctional.  Market actors are trying to replicate the cable model in a streaming world. But the cable model came about as a function of technological limitations, not market forces.

Is it not self evident that in a free market, consumers would be able to buy what they want and not buy what they do not want?

I entreat you not to approve of the creation of another integrated market player. At the same time, I entreat you, start taking a hard look at the anticompetitive practices that already are tolerated in existing horizontal and vertical integrations, especially through the strategy of channel-bundling leverage and opt-out subscription sales.

Sincerely,

Rick J. Peltz-Steele

(for information only:)
Attorney, Washington, D.C.
Chancellor Professor, UMass Law School

Monday, February 12, 2024

Hertz/Thrifty takes reservations for cars it doesn't have, stranding customers; worse, that's the business model

I've been locked in pre-litigation combat with Hertz Corp. for almost a year, and I'm tapping out.

The problem is simple: The Thrifty Car Rental (Thrifty is a Hertz company) at Memphis Airport (MEM) has been renting cars that it doesn't have. Customers get stranded for hours, until a car comes in, rolling the problem forward. And Hertz is OK with it.

Frustrated Thrifty customers wait hours for cars in Memphis (Mar. 2023).
There's not even seating.
RJ Peltz-Steele CC BY-NC-SA 4.0

Here's a rough timeline.

March 2023: I show up for a car rental in Memphis with a time-sensitive work schedule. They're "out of cars." Lots of people are milling about in the same predicament.  Hours later, I get a car, not before my work plans are screwed up. A check of online reviews reveals that this is business as usual for Thrifty MEM.

Later March 2023: I complain to Thrifty and the Tennessee AG and ask for just one day's refund and that the deceptive practice be abated.

May-June 2023: Hertz Executive Customer Service reaches out to offer $50 off a future rental and pledges that what I experienced is not Hertz/Thrifty's normal mode of business. In exchange for the coupon and assurance, I drop the matter with the Tennessee AG.

October 2023: I discover that the $50-off coupon is a sham.  The coupon can only be redeemed at the rental counter.  Premium for paying at the rental counter: $50.  I ask the Tennessee AG to reopen the matter. 

Also October 2023: I investigate online reviews of Thrifty MEM and discover that they still are renting cars they don't have, leaving customers stranded for hours or longer. I report my finding to the Tennessee AG. The Tennessee AG suggests I also report the matter to Hertz's home jurisdiction, Florida. So I forward the report to the Florida AG.

November 2023: In response to my reopening of the settlement with the Tennessee AG, Hertz says take a hike. The Tennessee AG closes the matter, because, you know, what can you do.

December 2023: I send Hertz a demand letter, alerting the company that sending a sham coupon to a Rhode Island resident and knowingly doubling down on the sham renders the company liable for treble statutory damages of $1,500 under R.I. consumer protection law.

January 2024: Hertz gives me 1,900 "Gold Plus Rewards" points for one day's car rental, in place of the $50 coupon.  I find out the points are just as useless when I need a rental from IAD to BWI; points can't be used on one-way rentals.  Meanwhile, Hertz replies angrily to my report to the Florida AG, accusing me of seeking unjust enrichment by complaining in multiple states. Oh, and Hertz tells me again to go take a hike.

That brings us to today.


Feb. 12, 2024

Hertz Corp. d/b/a Thrifty Rental Car
Attn.: General Counsel
8501 Williams Rd.
Estero, Fla. 33928

Open Letter

Dear sir or madam:

I write in regard to the matter originating in a car rental reservation with Thrifty at the Memphis International Airport on March 28, 2023; your subsequent proffer of a sham coupon for a subsequent Thrifty rental; my demand of Dec. 17, 2023, for compensation accordingly under Rhode Island consumer protection law; and your subsequent award of 1,900 “Gold Plus Rewards” points.

I accept your award of the points in abeyance of my demand.  I have grave doubts that the points are of any use to me.  I already have discovered that I could not use them for a one-way rental from IAD to BWI; they cannot be redeemed on one-way rentals.  And I don’t foresee a need in the future for a one-day car rental anywhere, certainly not before the points expire.  Nevertheless, I choose to see the award as a gesture of good faith.

In return, I ask just one more thing of you:  Hear me out on the following points.

(1) I never wanted from you money, coupons, or points.  I demanded the sum of only one day’s rental cost as nominal and symbolic. What I really wanted was simply that you stop your Memphis MEM Thrifty provider from accepting car reservations for cars they do not have, leaving customers stranded.  Ms. Walsh of Hertz Executive Customer Service wrote that that was not the business practice of Hertz and Thrifty (nor, one presumes, Dollar). That assurance was false. My investigation of online reviews revealed that the deceptive practice continued unabated at MEM. I subsequently rented from another company at MEM and saw the usual crowd of distressed travelers camped out at the Thrifty counter. Shame on you.

(2) A “$50 off”-at-the-counter coupon when you charge $50 more for transactions at the counter is a sham, plain and simple.  I reiterate, I didn’t want your coupon.  I would’ve dropped the matter if you simply abated the deceptive practice.  I decided to redeem the coupon only when it became clear that you were determined to continue to allow deception in your business at MEM.  Even to buy me off, you could not even make an honest offer. Shame on you.

(3) I informed the Tennessee and Florida AGs of the ongoing deceptive business practice at MEM.  Authorities should be informed, even if, as usual, they do nothing.  I forwarded the notice to the Florida AG only because the Tennessee AG bid me do so.  I did not ask for anything in Florida; I did not want dispute resolution in Florida.  The Florida AG, whether for incompetence or willful indifference, entered the notice into a private-dispute resolution system. Ms. Walsh responded in Florida with something like outrage that I had dared to complain about you in another jurisdiction. Let’s be clear: Your MEM provider was engaged in a deceptive business practice.  I notified civil enforcement authorities in that jurisdiction.  They urged me to notify civil enforcement authorities in Hertz’s home jurisdiction. So I did. I asked for nothing from or in Florida. Don’t accuse me of some kind of profiteering off of your poor choices.

You know as well as I do that you can get away with deception at MEM, and anywhere else you want to, and with your profound commitment to stick your head in the sand about it only because antitrust and consumer protection enforcement in your industry is a joke.  I wish I could say I’ll never rent again from Hertz companies. But of course I will. I won’t have a choice.

I understand how you get away with deception and subterfuge, but what I cannot understand is why.  It would be so easy simply to run an honest business.  Don’t accept reservations for cars you don’t have.  Don’t tell customers you’re doing one thing and do another.  If you give someone $50 off, give someone $50 off.  I’m sure Hertz is big and successful enough to stay in business without relying on deception.

Is it really so hard just to be honest?

Sincerely,

/s/ Rick J. Peltz-Steele

Cc: [Ms. Walsh]; [Tenn. AG]; [R.I. AG]; [Fla. AG]

Thursday, September 14, 2023

U.S. Soccer, FIFA lose antitrust appeal; defense shows short-sighted strategy to develop soccer in America

Cristiano Ronaldo plays for Real Madrid against Barcelona in 2011.
Jan S0L0 via Flickr CC BY-SA 2.0
U.S. Soccer and the Fédération Internationale de Football Association (FIFA) will have to defend an antitrust action in federal court for refusing to permit a Spanish La Liga match on U.S. soil, the Second Circuit ruled in March. 

In 2017, world famous football (soccer) clubs Real Madrid and Barcelona faced off in an exhibition game in Miami. The match was fabulously lucrative for the commercial interests behind it, including organizer Relevant Sports, LLC, based in New York.

World sport likes the United States, because our infrastructure practically prints money. Americans, especially the top echelons of the wealthy, have been habitualized by our unregulated and often subsidized sport-and-entertainment monopolists to pay more than people elsewhere in the world to see live events, both directly for seats and indirectly in media rights.

Incidentally, that's the principal reason that bringing the FIFA (men's) World Cup back to North America in 2026 was not really a hard sell, notwithstanding modest public enthusiasm and the theater of the global bidding process. The 2026 co-hosts, the United States, Canada, and Mexico, likely did not even have to pay the half-billion dollars that Qatar apparently spent, mostly to FIFA executive committee members, in, uh, let's say, "incentives," in siting the 2022 World Cup (about my World-Cup-2022-contemporaneous lecture; Qatar on this blog): check out the investigative exclusive by Armin Rosen for Tablet (link from inset), published late last month, using U.S. court records in collateral matters.

Understandably, then, Relevant Sports wanted to maintain the momentum of the 2017 exhibition match. The company proposed that the Spanish La Liga subsequently might site a regular-season, full-stakes match in the United States. 

However, FIFA rules say that a match cannot be held in a country foreign to both sides without the approval of the football federation in the host country. U.S. Soccer said no.

Relevant sued, alleging that the rule improperly protects domestic football from being overshadowed, and therefore diminished in interest and income, by high-profile competitors. U.S. Soccer and FIFA defend the system on the merits under antitrust law, and, saliently in this intermediate disposition, argued that the FIFA "rule" is not really a rule, because FIFA doesn't make the decision for U.S. Soccer or La Liga. They're free to make their own decisions, notwithstanding potential adverse consequences, such as exclusion from international competition for players, teams, or federations that don't play ball.

The instant Second Circuit decision is limited. The court remanded the antitrust claim to proceed, recognizing that FIFA's rule is rule enough to represent the kind of concerted action in violation of antitrust law that Relevant alleges.

Earlier this week, I wrote about Cory Doctorow's enthusiasm, which I share, for the federal government's antitrust agenda—including the Justice Department investigation of Google. (I canceled my Google Nest Aware subscription upon the 25% rate hike. Google's not the only game in town. Yet.) U.S. Soccer's loss in the Second Circuit represents a judicial step in the same right direction.

I'm not an antitrust expert. But to my relatively lay eyes, the fact that the federal district court dismissed the case in 2021 on the faint theory that U.S. Soccer was not formally bound by FIFA's command demonstrates how appallingly far U.S. antitrust law has strayed from basic fair-market principles. Or maybe the court just didn't understand the governance system in world sport and its facility for subverting the laws of nations.

USWNT celebrates in times happier than this year's World Cup.
rachael.c.king via Flickr CC BY 2.0
The U.S. Soccer position in the litigation to me demonstrates furthermore a fundamental misunderstanding of what it will take to make football successful in America. American soccer advocates often wonder aloud why the sport seems to stall again and again, even after the men's World Cup in the United States in 1994 and the astonishing run of the U.S. Women's team in an unprecedented four World Cup titles.

To be sure, there are many, many reasons for the frustrating cycle of revving and stalling. But equally surely, one of those many reasons is the short-term greed of commercial actors that works a detriment to long-term development. 

I've written previously about this problem in the context of media rights. When NBC acquired the rights to English Premier League football, the broadcaster divvied up matches among its many media properties based on the popular appeal of each. NBC's strategy was to leverage interest in the league to sell separate subscriptions to multiple services: NBC, NBC Sports, (at one time, "NBC Gold,") Peacock, USA, Telemundo, Universo.

The network either didn't consider or doesn't care what that model looks like from the customer's perspective. Football in a place such as its home U.K. (at least before U.K. media companies such as Sky started merging with U.S. media giants and took sport away from the publicly minded BBC; that's another story) maintains a multi-generational foothold because supporters follow their teams.  

Divvying up the matches makes it impossible in the United States for a viewer to follow a team. Each week, one gets whatever match a selected service happens to carry, based on its level of market appeal.  If you subscribe to a middle-tier service and your team starts to lose, you might get more matches. If your team starts winning, and you start becoming more engaged, you find yourself suddenly deprived of matches.

That market behavior doesn't build a fan base. For American football or basketball, maybe there are enough viewers who will watch any game because they love the sport. But Americans don't yet love soccer that much. Sport-market development requires fostering two interrelated conditions at the same time: public enthusiasm for the sport, and public enthusiasm for a team. Neither can thrive without the other.

U.S. Soccer's refusal to permit La Liga to play a match on U.S. soil also is self-defeating, if for the converse strategic blindness. Both media rights usurpers and U.S. Soccer, focused on short-term profits, are dampening American enthusiasm by impeding U.S. viewers' access to the highest level of play in the world, in the Premier League and La Liga. While NBC's strategy deprives Americans of the opportunity to root for a team, the U.S. Soccer strategy deprives Americans of the opportunity to root for the sport.

Again, neither can thrive without the other.  U.S. Soccer is trying to protect Major League Soccer and the federation's underage and lower divisions. The federation reasons coldly that someone who buys a $500 La Liga ticket will skip five or ten $48 Tampa Bay Mutiny matches.

They're wrong. One of my U.S.-based family is a card-carrying member of the Toon Army, a dedicated supporter of Newcastle (U.K.) United FC. He traveled domestically to see Newcastle play an exhibition match in the United States this summer. Being a Newcastle supporter has made him a more, not less, enthusiastic supporter of his nearby D.C. United and the U.S. men's and women's national teams. With access to the matches of each, live and on TV, he's more likely to spend money on all of them.

Antitrust law is not a device to make commercial actors prioritize long-term interests over short. To the contrary, if NBC and U.S. Soccer put themselves out of business, that's a healthy outcome for the free market. But if antitrust inadvertently compels U.S. Soccer to up its game and compete for eyeballs by actually developing the sport, rather than constraining consumer choice, then that's an outcome I can get behind.

The case is Relevant Sports, LLC v. U.S. Soccer Federation, Inc. (2d Cir. Mar. 7, 2023). U.S. Circuit Judge Raymond J. Lohier, Jr.., wrote the opinion of the unanimous panel that also comprised Chief Judge Livingston and Judge Lynch. In 2017's "El Clásico Miami," Barcelona bettered Real Madrid 3-2.

Monday, September 11, 2023

Gladstone, Doctorow game out tech reg quagmire

Cory Doctorow
Houari B. via Flickr CC BY-NC-SA 2.0
On the Media's Brooke Gladstone talked to Cory Doctorow, author, internet activist, etc., on September 1 about, well, everything, and it's a breathtaking hour of must-listen radio.

The conversation wrapped up every issue I care about in technology and society today into a neat and intelligible bundle of the utter mess that it is: intellectual property, antitrust, privacy and data protection, politics and corruption, and the corporatocracy that's incinerating democracy. Doctorow is more optimistic than I that human civilization can yet be saved, so the program is not even a downer in the end.

I feel like I'm someone who knows a fair bit about this stuff, so I was humbled by how much I learned. I want to spill it all here, but I ought not be a spoiler. I'll share just a tidbit.

You know that thing when videos go viral and some average joe or jane inspires another generation of youth to plot a career as a social media sensation?

Yeah, not a thing.  At least not always an organic thing. Companies such as TikTok "twiddle" or "heat up"—terms of art—selected content to make it "viral," even while users think that they collectively are driving virality by demand.

Why? It's a "giant teddy bear" strategy, Doctorow explained. The carney at the fair lets an early player on one of those unwinnable-by-design games "win" the giant teddy bear, knowing that that customer will carry it around all night, inadvertently advertising the game to everyone else. The viral video maker thinks that a million people just loved that nutty dance and doesn't even realize that she or he is a tool, carrying the giant teddy bear around.

How do the companies get away with telling us one thing and doing something else? Because they change the rules whenever they like, Doctorow said. There are no rules about how they can change the rules.

Huzaifa abedeen via Wikimedia Commons CC BY-SA 4.0
And don't even get me started on the plethora of legal mechanisms that protect this monstrous Big Tech monopolization. Dare to start asking questions, and you'll find yourself on the business end of demand letters citing the DMCA, the Computer Fraud and Abuse Act, and patent and trademark law, just to get the ball rolling.

Yes, I realize that I am writing on a Google platform right now. What's a writer to do? I confess, I made a conscious decision at one point simply to surrender to Google. I have a Nest doorbell, a Pixel phone, and a Google Drive. But, you see, this is what Doctorow is talking about. It's next to impossible to get along in the virtual world today without surrendering.  Try buying diapers from Diapers.com instead of Amazon.

Doctorow is a big fan of Lina Khan and the example she's setting with the Federal Trade Commission's sudden scrutiny of the tech sector. Unfortunately, Doctorow said, it's easier to stop monopoly from happening than to dismantle it after it's taken hold. If you're my age, you'll remember how long AT&T reigned supreme before the feds came a-knockin'. Better late than never. I'll be interested to see if Khan-ology persists, or corporate power in Washington is now too big to break.

The podcast is How Big Tech Went to Sh*t, from WNYC's On the Media (Sept. 1, 2023).

Monday, January 30, 2023

Senate inquisition of Ticketmaster is antitrust theater

Ginny via Flickr CC BY-SA 2.0
Inquisition of Ticketmaster in the Senate last week made headlines, but it's so much antitrust theater, and Ticketmaster and parent Live Nation know it.

Senators love to play hard-nosed before the cameras, and then assiduously do nothing to alienate the corporatocracy. Breathless reporting on the hearing in the Judiciary Committee would have you believe that this is Ticketmaster's first dance. It's not.

The Justice Department signed off on Ticketmaster's very merger with Live Nation in 2010 (N.Y. Times). The N.Y. Times Dealbook Newsletter further recalled:

In 2019, [Sen. Amy] Klobuchar [D-Minn.] and Senator Richard Blumenthal, Democrat of Connecticut, urged the Justice Department to investigate the "broken" ticket industry.

Artists have long complained about Ticketmaster’s role. The band Lawrence, whose co-founder, Clyde Lawrence, wrote a Times Opinion essay on the topic last year, included the line "Live Nation is a monopoly" in its 2021 song "False Alarms." Perhaps most famously, Pearl Jam filed an antitrust complaint against Ticketmaster in 1994—16 years before it merged with Live Nation—kicking off a federal investigation that ultimately fizzled.

(Read more about the Pearl Jam claim from Rolling Stone in 1995. (UPDATE, Feb. 5: On the Media looked back at the Pearl Jam matter two days ago.)) House Democrats asked the Biden Administration to take another look at the Live Nation merger in the spring of 2021, well before the Taylor Swift ticketing fiasco (N.Y. Post).

Founded in 1976, Ticketmaster was on its way to market dominance and a lousy reputation with concertgoers by the time I was a teenager. Already transnational, it took the market lead when it acquired Ticketron in 1991.

Live Nation was once a growing competitor to behemoth Ticketmaster. In 2000, Live Nation was acquired by Clear Channel Communications, and then was spun off in 2005. It soon started work on the Ticketmaster merger, which was announced in 2009 and approved by the Obama Justice Department in 2010.

Clear Channel itself is another chapter in the government's pathetically permissive record of antitrust enforcement in media and entertainment. In 2001, Jesse Morreale, a Colorado concert promoter (and my first cousin), along with partners in Nobody in Particular Presents, Inc., sued Clear Channel for shameless vertical integration in the music business.  The federal district court in Denver denied Clear Channel summary judgment in 2004 (more behind pay wall at Rolling Stone). The case subsequently settled. Clear Channel's vertical integration was a more sophisticated descendant of simple payola, an unfair practice in the music industry as old as regulatory agencies themselves. 

It's a normal market dynamic for industry and antitrust regulators to play a cat-and-mouse game over the long term. But Ticketmaster has been only a clever Jerry to the government's buffoonish Tom for going on half a century.

Wednesday, September 28, 2022

Proposed Biden rule would try again to compel airline pricing transparency; it worked out so well last time

President Biden has his own plane.
(U.S. Mission photo by Eric Bridiers CC BY-SA 2.0 via Flickr)
The U.S. Department of Transportation (DOT) has proposed a rule to refresh pricing transparency in the airline industry.

According to a DOT press release: "Under the proposed rule, airlines and travel search websites would have to disclose upfront—the first time an airfare is displayed—any fees charged to sit with your child, for changing or cancelling your flight, and for checked or carry-on baggage." 

For me, the new rule can't happen soon enough. At the same time, I'm doubtful we'll see much change in the opacity of the airfare market.

I'm a libertarian. But in America, libertarianism is too often confused with a radically absolutist version of laissez-faire capitalism. Libertarianism rather is about the virtues of a free market. And free markets depend on conditions that don't naturally tend to exist in the real world, including a free flow of information between buyer and seller—that is, transparency. Free markets require regulation to ensure that they remain free.

The airline industry, especially since it moved to online sales, is case in point. In the online marketplace, customers are attracted by low upfront prices. Airlines found that sales improved when the upfront price was lowered by moving some of the fare, especially bag-check costs, to add-on fees later in the purchase transaction. Southwest famously resisted bag-check fees and has capitalized on its exceptionalism, though not without costs

In the usual purchase transaction, the low upfront price is too attractive to resist. And competitors' add-ons are not always apparent until the customer has sunken too much time and money into the booking to look back. Indeed, Delta does not even allow customers to prepay bag check, so fliers are not confronted with the bag-check add-on until the day of departure.

Dollars are not the only costs that airlines can conceal from customers doing online price comparison. Inconvenient routing with multiple and lengthy layovers can cost fliers time and money down the line. Early morning and late night flight departures and arrivals can significantly increase airport transfer costs, besides risking personal security and inducing exhaustion. Seat availability can be limited, making flying literally painful for someone six-foot-five or weak of bladder. 

Negotiating these options can be grueling for the consumer, and the market can seem ungoverned by logic. For me, it is not unusual to take days, at hours per day, sifting and testing the market to get the best deal on an air itinerary. In a recent search process, I found, not atypically, that I could fly from city A to city B to city C for less than it cost to fly from city A to city B, which was my actual destination, because direct service is more desirable. But buying the cheaper fare and leaving the airport at city B is called "skiplagging," or "hidden city ticketing," and airlines can be nasty about enforcing their prohibition on it.

On the one hand, I respect the airlines' free-market discretion to charge a higher price for a direct flight than for a less desired routing. On the other hand, there is a confounding absurdity to the idea that I would find myself at home in city B, yet be obligated to board a plane to carry on to someplace I don't want to go. Courts have been hostile to airlines' efforts to penalize skiplaggers financially. But they won't stop an airline from zeroing out a customer's frequent flier miles or even banning the flier from the line.

Like radar detector technologists with speeding enforcers, airlines have played cat and mouse with private and public regulators. Search engines have become more sophisticated in allowing customers to specify parameters, such as bag checks and connections. But the providers vary in options and their efficacy. Kayak tries to help with bag-check fees; Expedia not as much. And the mere act of online price comparison might introduce costs; despite industry denials, there is some evidence that consumers trigger price increases by repeating searches on Kayak and Google.

The search engines anyway can only sort data that the airlines provide, and they are not always forthcoming with details. Some airlines shun intermediary booking sites wholly. Airlines started gaming bag-check fees in 2008. Customer frustration finally precipitated disclosure regulation in 2011.

The regulation failed; bag-check fees are not easy to find. At Frontier and Spirit, the pricing is variable, so a shopper must enter data about a specific flight to get a number that allows price comparison. Meanwhile, bag-check fees have extended to an array of options. United is among airlines that now charge for a carry-on bag, and JetBlue charges for overhead bin space.

Add to the mix that JetBlue and Spirit announced their merger in 2022, even as JetBlue defends its partnership with behemoth American Airlines in litigation with the Justice Department (DOJ). Fewer carriers never results in improved transparency or lower prices for customers. Anti-competitive conglomeration is a natural market tendency, and healthy to a point, but it must be counterbalanced by thoughtful and vigorous antitrust regulation.

Even if DOJ is successful in the present antitrust litigation, the success will be a drop in the bucket of an industry that already is far too monopolized. The United States has nothing like the peanut airlines that blanket Europe. There are legitimate reasons for that deficiency, for example, our larger land mass. But there are plenty of illegitimate reasons, too, including monopoly by air carriers and monopoly in secondary markets, such as airports, baggage handling, and the transportation infrastructure that supports transfers.

The proposed rule announced by the Biden Administration is better than nothing, if it is promulgated intact. But the rule barely scratches the surface of what's needed to move the airline industry into a truly free market, in which consumers have a fighting chance. Extrapolating from past efforts to compel the disclosure of bag-check fees, it's safe to predict that the airlines already are one step ahead, and little will change for the consumer's experience.

A free market is a transparent market with manageable entry barriers. Consumers should be able to compare prices head to head for the same services. The internet should have facilitated the free market and leveled the playing field for buyers. Instead, weak regulation has let industry run amuck and obfuscate pricing. Absolutist laissez-faire capitalism is otherwise known as corporatocracy.

 —

Presently, I'm using two different modalities to try to pursue penalty fees from airlines for flight delays I experienced in the summer under European Union regulatory jurisdiction. When I have outcomes to report, I'll blog about it.

Saturday, September 3, 2022

FTC finally notices abuse of customers, shady business practices by car rental industry

In an omnibus resolution late last week, the Federal Trade Commission (FTC) green-lighted investigation of the car rental industry.

Earlier this year, I wrote about the "new lows" of our car rental oligopoly in the United States, including my own experiences with the misleading Hertz "loyalty" program and the manipulation of pickup and drop-off times to draw overage fees.

The resolution broadly compels investigation "[t]o determine whether any persons, partnerships, corporations, or others have engaged or are engaging in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing, promotion, sale, tracking, or distribution of rental cars."

For context, Frankfurt Kurnit's Jeff Greenbaum wrote in Advertising Law Updates that commissioners ordered similar investigations in July 2021 into "areas such as COVID-19, healthcare, and technology platforms," and in September 2021 into services targeting veterans and children, "algorithmic and biometric bias, deceptive and manipulative conduct online, repair restrictions, and abuse of intellectual property."

The FTC didn't detail the buzz in its bonnet, but they likely heard lawmakers in the spring frowning on Hertz's misreporting of stolen cars. Senator Richard Blumenthal (D-Conn.) wrote Hertz a nasty-gram in March. Forty-seven customers filed suit for false arrest in July, CNN reported (via ABC 7 L.A.), and they're not the only ones.

I documented my rental return this summer in Thunder Bay, Ontario.
(RJ Peltz-Steele CC BY-NC-SA 4.0)

I've started taking the advice of The Points Guy's Summer Hull to take pictures and videos of my rental cars when I pick them up and when I return them. One Mile at a Time advises the same

But I'm doubting the utility of it. I'm not sure you can see scratches or dents in the images, especially in dark garages. And, as Hull herself reported, she was called out for alleged damage to the roof, which she had not climbed up to photograph. I wonder whether I should crawl under the car to photograph the undercarriage.

Lately rental companies have presented me with an up-sell option for tire and window insurance, threatening that they're not covered even if a buy the CDW. And don't get me started on involuntary "upgrades" to fuel-inefficient trucks. Even the sedan pictured here, which I rented this summer in Thunder Bay, Ontario, was what I got when I reserved an SUV to tackle unpaved roads.

Meanwhile, my budding occupation as car portraitist is eating into my travel time and my hard drive space.

It seems to me that when customers start having systematically to video-record their interactions with industry to protect themselves against fraud, the problem might be with the industry and not with the customer.

Oh, FTC ... 🤙

Saturday, August 13, 2022

NBC resists TV free market, overcharges U.S. viewers: PL football costs $20 in Canada, $70 in United States

Each year, I become freshly enraged at the cost of seeing Premier League football in the United States, a ready example of antitrust non-enforcement in the communication sector.

The Sporting News had the audacity, or stupidity?, to describe NBC carriage of PL matches in the United States as a "luxury." I guess it is, a luxury only the rich can afford. To follow one's team, one must, at minimum, subscribe to NBC partner FuboTV for $70 per month. Access via FuboTV costs just US$20 per month in Canada.

The tangled cross-ownerships of what used to be broadcast TV are indicative of the dearth of consumer protection in the area. NBC "competitor" CBS (Viacom) owns a stake in FuboTV. The legacy broadcasters are using their weight in contracting power to lock down content in channel consolidators that emulate the old cable TV business model, by which consumers were compelled to overpay for a sliver of content in a library they didn't want. Hardly the free market promise of streaming.

But the FCC long ago left the helm unmanned on consumer protection when broadcasting gave way to cable. And the FTC and DOJ have had little interest in expanding their purview in times of corporate-captured governance. As usual, the United States purports to model free market capitalism in an oligopolized market that is anything but.

FuboTV in Canada at left, United States at right.
The package in Canada has fewer channels,
but if PL is all you want, that's not an option.

Monday, January 24, 2022

American Airlines resists transparency, sues 'Points Guy' for tortious interference, trademark infringement

Photo by RJ Peltz-Steele at O.R. Tambo International Airport, Johannesburg,
South Africa, 2020 (CC BY-NC-SA 4.0)

The Points Guy (TPG) has become embroiled in litigation with American Airlines over how the TPG app lets users manage their frequent flyer miles, the airline charging the website with tortious interference and trademark infringement.

I read TPG every day.  The website is funded by product placements and advertising, especially by credit card companies.  One has to know that and take the content with heaps of salt.  But I find TPG incomparable and nonetheless worthwhile for keeping up with the travel industry.  And TPG advice has been especially helpful to me with advice on frequent flyer programs, for example, letting me know how much miles are worth on average in real dollars, so I know whether dynamic redemption tables are offering a good deal.

I also like some of the writers at TPG, because they set a tone that resonates with me, mixing a desire for industry accountability, especially for airlines, with a sense of humor and a lighthearted wonder of the world.  Baltimore-based senior editor Benét J. Wilson (LinkedIn, Muck Rack, Twitter; see also Poynter) is especially fabulous; check out her wider world at Aviation Queen.  I met Benét when she taught an outstanding program on advanced Google research tools for the National Freedom of Information Coalition (NFOIC), and thereby for my FOI Law students, who participated.

Last year, TPG launched an Apple app.  I haven't used it, because I'm an Android user.  I avoid Apple products because I've never been a fan of Apple intellectual property (IP) policies, which I mention because it's relevant here.  Apple's limited submission to a right of repair for Apple smartphones is a step in the right direction; more on that momentarily.  Anyway, TPG is working on the Android version of the app.

Among many features, the TPG app empowers users to manage their frequent flyer miles.  TPG deep-links to data from sites such as that of American Airlines (AA), within users' accounts there.  Obviously, this access improves the user's ability to maximize the value of their miles, recognizing good deals and, key, getting advance warning when miles are set to expire.

AA was not happy about that.  The company accused TPG of violating the terms and conditions of the website and frequent flyer program, AAdvantage, thus, allegedly, interfering with AA's contract with its customers and infringing on AA IP.  According to media reports, TPG sued AA in Delaware state court the week before last.  I assume TPG sought declaratory relief; at the time of this writing, the complaint is not yet available from Delaware courts.

Then on Tuesday last week, AA sued TPG in federal court, in AA's home Northern District of Texas.  The complaint alleged tortious interference with, inter alia, contract, unfair competition by misappropriation, (virtual) trespass, trademark infringement and dilution, copyright infringement, and violation of the Computer Fraud and Abuse Act.

For Law360, Jasmin Jackson filled in some background last week (limited access without subscription).  Jackson reported that TPG initially sought AA's partnership in the app.  AA declined.  Since the app's launch, the two were discussing their differences.  AA claimed surprise at TPG's Delaware filing and accused TPG of leveraging its position with litigation costs and compelling, AA said, the suit in Texas.

I see the case as a high-tech relation of the right-to-repair problem.  AA is gaining a business advantage through obfuscation of customer data and control of information under the guise of IP protection.  The same strategy is why I have to pay a high-dollar technician to tell me what's wrong with my car when the check-engine light comes on, and it's why 11% of McDonald's Taylor-made McFlurry machines are broken.

Customer frustration with companies' resistance to transactional transparency to maximize profit margins is manifesting in a wave of state legislation to protect consumers (see N.Y. Times July, Oct. 2021; repair industry website; U.S. PIRG).  Massachusetts voters overwhelmingly approved a right-to-repair ballot initiative in 2020, despite a $25m no campaign by the auto industry (on this blog).  Industry promptly sued, principally claiming federal preemption.  The outcome of a 2021 trial in Alliance for Automotive Innovation v. Healy is still awaited, as the parties battle over a state motion to reopen trial evidence.

There is a Fair Repair Act bill in Congress, even if its odds of passage are dismal.  And the President last summer made overtures, however feeble, ordering the Federal Trade Commission to regulate to protect independent repair shops.  Industry claims it needs exclusive repair rights to protect consumers from incompetent independent technicians.  But a May 2021 FTC report located such industry claims somewhere between baseless and overstated.

The cause should be, and at least sometimes is, bipartisan.  As I have commented many times, free markets depend on transparency, the free flow of information between business and consumer.  So even economic conservatives should be able to get behind the right to repair.  That bipartisan impulse has fueled congressional appetite for now pending bills to enhance antitrust in the tech sector.  Apple's seemingly open-minded move to allow smartphone repair might have been calculated to head off antitrust enforcement.

Summons issued last week in the lawsuit filed by AA, which is American Airlines, Inc. v. Red Ventures LLC, No. 4:22-cv-00044 (N.D. Tex. filed Jan. 18, 2022).

UPDATE, Nov. 10: The parties settled on undisclosed terms on November 4, 2022.

Tuesday, January 18, 2022

U.S. rental car oligopoly hits new lows, as customers alleging false arrests intervene in Hertz bankruptcy

Photo by Diego Angel CC BY 3.0
A curious story of alleged false arrests and a corporate lawyer's blunder surfaced in business media earlier this month, and the story speaks to the sad state of consumer protection in America.

In December 2021, dozens of claimants filed (no. 193) in the covid-precipitated bankruptcy of Hertz, the rental car company, alleging the reporting of rental cars as stolen, resulting in false arrests of Hertz customers by police, along with the disgrace of arrest, jailing, and other life disruptions that attend felony charges.

The claims, many recounted by CBS News, allege varied circumstances precipitating the reports of stolen cars, including poor record-keeping and misunderstandings over return times, hardly the stuff of high crime.  The claimants' theory is that Hertz essentially outsourced its (mis)management of late returns to police, disregarding the dramatic mismatch between contract enforcement and criminal justice and the ruinous consequences visited on customers.

Early in January, journalist-blogger Minda Zetlin of The Geek Gap reported a verbal gaffe in court on the part of a Hertz lawyer.  Zetlin's report was picked up by a number of outlets, including Inc.  The only recent transcript on file in the case (no. 251) is "not available" on PACER, maybe because the claimants, Hertz, and CBS News are now in a tussle over sealing, the docket suggests.  Anyway, I can't verify Zetlin's report, so I'm not going to name the lawyer here.

According to Zetlin, a Big Law lawyer representing Hertz responded in court to the allegations: "It is a fraction of 1 percent of annual police reports that are filed that turn into actual litigation claims.... We actually think the number of legitimate claims that arise out of annual rentals is a tiny, tiny, tiny, tiny, tiny, tiny fraction."

Zetlin fairly observed that even a "tiny" "number ... does not count customers who were falsely arrested but accepted an early settlement from Hertz, resolved the matter in arbitration, or simply decided they didn't have the funds or the stamina for a lawsuit."  Zetlin further opined that "[m]ost [Hertz customers] would likely prefer a car rental company where their chances of going to jail are zero, rather than just tiny."  Count me in that majority.

I can't speak to the merits of the claims.  But for my part, I have been frustrated by car rental companies' shocking embrace of the contemporary trend to forego all pretense of customer service.  This skimpflation has been exacerbated by the pandemic, but we were well on our way before 2020.

Hertz, in particular, raised my ire more than once last year.  Having been lured into Hertz's "Gold" program, I once made a reservation directly on the Hertz website, rather than running my usual price comparisons with intermediaries.  Afterward, I discovered a lower rate on USAA.  But every time I was forwarded to Hertz.com to confirm the reservation at the USAA rate, I was automatically logged in to Hertz, and the rate jumped substantially.  When I tried linking to Hertz in a private window, without logging in, I got the lower rate.  In other words, Hertz was charging me substantially more because I was a member of the "loyalty program."

When I waited on hold for hours to ask a Hertz agent to log my anonymous reservation in my Gold account, I was told it couldn't be done without elevating the rate.  An agent told me that the Gold program does not guarantee lowest rates.  Actually, it does.  So much for loyalty.

Another new practice of car rental companies is to manipulate the time of pickup and drop-off to increase the likelihood of a late fee.  A customer reserving a car for pickup has to make a ballpark estimate of the time, considering how long it might take to deboard a plane, claim bags, transfer to a ground transportation center, etc.  Reservation systems offer pickups usually in only half-hour increments, 12, 12:30, 1, 1:30 etc.  So it's an inexact science, and the rental company knows that.  Accordingly, it was once common for the companies to afford an hour's grace on the clock one way or the other.  No longer.

When I picked up a car early, Hertz, without the agent saying a word, pre-charged me a late fee on the return while giving me paperwork showing the car due back at the original return time.  When I complained, Hertz said the charge would be taken off if I returned the car earlier than the indicated time, days to the minute from my actual pickup.  Yet when I rented another car and picked it up late, my return time still did not change.  The car was due back at the same time, and I just lost the hours to my late arrival.  So whether a customer is early or late for pickup, an inevitability because of deliberate inexactness, the company wins, either time or money.  No doubt the company is betting that the small loss on one rental will go unnoticed to the customer but add up big for the cumulative bottom line.

I admit, my complaints are small potatoes, mere annoyances, compared with being jailed.  But the theme that unifies my experience and that of the claimants against Hertz is Hertz's profound indifference to the customer.

So, free market, right?  Treating a customer like an entitlement is a consumer protection problem that should solve itself when a competitor comes along and offers to do better.  (Southwest's free checked bags and transparent pricing come to mind in the airline industry.)  Part of the problem is our public officials' dereliction of duty in antitrust.  The experiences I just described also characterize the policies of Dollar and Thrifty, because, guess what, they're owned by Hertz.  Likewise, Enterprise owns National and Alamo, and Avis owns Budget and Payless.  Three "beasts" account for almost all of the U.S. rental market.

Free markets only work when the playing field is level, information flows freely, and barriers of entry to the market for new competitors are surmountable. None of those conditions holds true in our car rental oligopoly.  Rather, if the claims in the bankruptcy court are to be believed, we've come to the point that a company can jail customers in case of contract dispute and hardly fear market reprisal.

Debtors' prison must be around the next corner.

The bankruptcy case is In re Rental Car Intermediate Holdings, LLC, and CBS Broadcasting Inc., No. 20-11247 (Bankr. D. Del. filed May 22, 2020).

Wednesday, September 2, 2020

While U.S. Congress ponders Big Tech oligopoly, Uruguay Supreme Court upholds TV football for all

While our powers-that-be in Congress wring their hands over trying to reconcile allegiance to our corporate overlords with antitrust in the tech sector, a court decision in Uruguay is worth noting.  The Supreme Court of Justice in the country of La Celeste held constitutional a law that compels the free live broadcast of some national soccer and basketball games.

Uruguay v. Costa Rica in World Cup 2014
(Danilo Borges/Portal da Copa CC BY 3.0 BR)

The ruling, sentencia no. 244 de 17 de agosto 2020 (search "244/2020" here), doesn't cover many games.  Explaining the case in 2019, a representative of the appellant Uruguayan Football Association (AUF) told El Observador (Uruguay) that the law would cost the franchise only some of nine Uruguay football qualifiers in four years. AUF still insisted that its economic interests were meaningfully and unconstitutionally diminished by the imposition.

Notwthstanding the limited reach of the ruling, the Court's willingness to abrogate private economic rights to further the public interest is significant.  Accepting the rationale for the law, the Court wrote, "Recuerda y resalta la Corte que la selección uruguaya de fútbol, en función de las hazañas deportivas y copas obtenidas en campeonatos mundiales y juegos olímpicos, forma parte de la identidad nacional y es tópico actual y recurrente en la ciudadanía." ("The Court recalls and emphasizes that the Uruguayan football team, as a function of its sporting achievements and championships won in the World Cup and Olympic Games, forms part of the national identity and is a current and continuing subject among the people.")

The ruling, on article 39 of the Ley de Medios, No. 19307, is one in a series from Uruguayan high courts (e.g., Observacom, Aug. 15) in recent months examining constitutional challenges to a far-ranging 2015 package of populist telecommunication reforms.  Civil rights advocates have hailed the courts' rulings for upholding the constitutional framework of the media law overall.  But business challengers have succeeded in blocking some restrictions, such as a limitation on subscriber numbers for cable TV providers, as unduly burdensome of commercial freedom.  For further example of the mixed results, the Court upheld article 40, which licenses Televisión Nacional de Uruguay to broadcast a game if no other broadcaster bought the rights.  But the Court struck down a subparagraph of article 39 that gave the executive authority to convert matches to free TV by resolution recognizing the public interest.

The telecommunication reforms have been championed by "center-right" Uruguay President Luis Lacalle Pou, who came to power in March 2020 after a hard-fought election and contested run-off.  Upon a campaign theme of "Uruguay seguro, transparente y de oportunidades," President Lacalle Pou promised to push back against left-leaning policies of the previous fifteen years with a raft of reforms aimed at slashing spending, controlling crime, combating corruption, and realigning foreign policy.  Whether or not he could have delivered, he has been, like leaders around the world, hampered by the coronavirus crisis.

Hat tip at Observacom Executive Director Gustavo Gómez (Twitter) for reporting on the case.

Tuesday, October 22, 2019

Legal comparatists meet in Missouri

Maxeiner
Last week the American Society of Comparative Law (ASCL) met at the University of Missouri Law School.  I was privileged to participate among 120 scholars from 20 countries.

As part of the works-in-progress program at the front end of the conference, I presented the most recent iteration of my work on access to information law, comparing private-sector transparency and accountability measures in South Africa with selected standards in Europe. 

Maxeiner's 2018 book on
"failures" in Amercian
lawmaking

Yoo
I benefited from exchange of critique from a room full of participants, including co-panelists James Maxeiner of the University of Baltimore and Kwanghyuk (David) Yoo of the University of Iowa.  Maxeiner presented a fascinating comparative study of lawmaking in Germany and the United States, showing the inventive ways that lobbying-driven American lawmakers might learn from Germany's variegated means of incubating potential legislation.  Yoo talked about U.S. and European Union court decisions on antitrust challenges to patent settlements in the pharmaceutical industry: when a company settles a lawsuit to keep a patent challenger out of the market, when does dispute resolution cross into anti-competitive misconduct?

The panel was moderated by Missouri’s Mekonnen Ayano, a Harvard doctoral graduate and formerly an Ethiopian judge and World Bank legal counsel.  University of Missouri Dean Lyrissa Lidsky, an accomplished media law scholar, attended and live-tweeted the panel.

[UPDATE: Vainly adding photos with me in them, courtesy of Mizzou Law.]

Prof. Maxeiner and I listen in the lecture hall.

I puzzle over dinner options.

I ramble about ATI in Africa with the generous ear of moderator Prof. Ayano.

Wednesday, September 11, 2019

Antitrust regulators need to up their game to meet challenges of media convergence, Argentine researchers write in UNESCO paper

Published by UNESCO, a new policy paper from Argentine researchers Martín Becerra and Guillermo Mastrini warns that antitrust regulation must adapt to the convergence of media, telecommunication, and internet to remain effective and preserve people's rights.

Prof. Mastrini

Becerra is a researcher with the National Scientific and Technical Research Council (CONICET), an Argentine government agency, and holds academic appointments at the National University of Quilmes (UNQ) and the University of Buenos Aires (UBA).  Mastrini also serves on the UBA faculty.

The researchers reach the counter-intuitive conclusion that the internet's accessibility to new market entrants, and the ease with which new communication technology should facilitate the balkanization of media services, ironically has worked to concentrate property, revenue, and audience globally.  Thus the role of the regulator is more important than ever, while anachronistic regulatory approaches remain siloed in sectors of disparate expertise.

Prof. Becerra
Becerra and Mastrini rather articulate a "relevant market" approach to organize regulatory authority.  At the same time, they eschew a one-size-fits-all approach to the different problems presented by different entities, namely internet "giants," telecommunication conglomerates, and media companies.  Moreover, the researchers stress that values of access to culture, freedom of expression, and pluralism should be baked into the regulatory framework.

The report is La convergencia de medios, telecomunicaciones e internet en la perspectiva de la competencia: Hacia un enfoque multicomprensivo (my translation: The Convergence of Media, Telecommunication, and Internet from the Perspective of Competition: Toward a Multiple-Understanding Approach) and is published by UNESCO as no. 13 in the series, Discussion Notebooks on Communication and Information, ISSN no. 2301-1424 (2019).  The report is in Spanish and includes an executive summary in translation.  HT @ Observacom.


Here is the executive summary:

The converging qualities of information and communication technologies challenge classic regulatory frameworks when regulating audiovisual media activities, on the one hand, and telecommunications, on the other. The digitalization of communications causes a metamorphosis in the definitions of what each sector encompasses and the emergence of actors that provide products and services and develop businesses in convergent markets simultaneously and in increasingly vast geographical areas.

Regulatory approaches that sought to protect freedom of expression in the media, guarantee access to cultural and informational resources and sustain economic competition to avoid distortion of markets today are being reviewed in light of the new reality of progressive integration and of the growing crosscutting elements within the media, telecommunications and Internet ecosystem. In fact, there are limitations that prevent responding effectively and consistently to the problems raised with the consolidation of the digital revolution.

This policy paper provides analytical tools based on comparative law and inquires about antitrust policies and their relationship with the objective of having diverse and pluralistic communication systems that stimulate public debate in democratic societies. Therefore, it has a multi-understanding approach, since one of its objectives is to facilitate the dialogue of areas that until now have had fields of study, normative translations and institutional expressions separated from each other.

After consulting Latin American regulators in the area of defense of competition, specialists in the region in the field and presenting an updated state of the art of the debate about the relevance of economic competition approaches to seek clear answers for the new problems of a convergent environment in communications, the document makes recommendations with the aim of improving the design of public policies both in the field of information and communication services, and in those that serve economic competition, harmonizing fields and disciplines that were not conceived in an articulated way.

In this context, the policy paper is proposed as an input for public policies and a contribution to optimize the understanding of current phenomena with deep repercussions in the culture, information and communication of societies and individuals.

En español:
Las cualidades convergentes de las tecnologías de información y comunicación desafían los encuadres normativos clásicos a la hora de regular las actividades de medios audiovisuales,  por  un  lado,  y  las  de  telecomunicaciones,  por  otro  lado.  La  digitalización de las comunicaciones provoca una metamorfosis en las propias definiciones de lo que cada sector abarcaba y el surgimiento de actores que proveen productos y servicios y desarrollan negocios en los mercados convergentes de modo simultáneo y en ámbitos geográficos cada vez más vastos.

Los enfoques regulatorios que buscaron como objetivos proteger la libertad de expresión en los medios de comunicación, garantizar el acceso a los recursos culturales e informacionales y sostener la competencia económica para evitar la distorsión de los mercados hoy están siendo revisados a la luz de la nueva realidad de la progresiva integración y de los cruces cada vez mayores dentro del ecosistema de medios, telecomunicaciones  e  Internet.  En  efecto,  hay  limitaciones  que  impiden  responder  de manera eficaz y consistente los problemas suscitados con la consolidación de la revolución digital.

El presente policy paper provee herramientas de análisis basadas en el derecho comparado e indaga sobre las políticas antitrust y su relación con el objetivo de contar con sistemas de comunicación diversos y plurales que estimulen el debate público en sociedades democráticas. Por ello es multicomprensivo, dado que uno de sus objetivos es facilitar el diálogo de áreas que hasta el presente han tenido campos de estudio, traducciones normativas y expresiones institucionales separadas entre sí.

Tras consultar a reguladores latinoamericanos del área de defensa de la competencia, a especialistas de la región en la materia y exponer un actualizado estado del arte del debate académico y de divulgación acerca de la pertinencia de los enfoques de competencia económica para satisfacer con respuestas claras los nuevos problemas propios  de  un  entorno  convergente  en  las  comunicaciones,  el  documento  formula  recomendaciones con el objetivo de mejorar el diseño de las políticas públicas tanto en el campo de los servicios de información y comunicación, como en el de las que atienden  a  la  competencia  económica,  armonizando  campos  y  disciplinas  que  no  fueron concebidos de modo articulado.
En este sentido, el policy paper se propone como un insumo de políticas públicas y una contribución para optimizar la comprensión de fenómenos actuales con hondas repercusiones en la cultura, la información y la comunicación de las sociedades y las personas.