Antitrust Enforcement Errors Due to a Failure to Understand Organizational Capabilities and Dynamic Competition

Dr. David Teece and Magdalena Kuyterink highlight critical errors in antitrust policy enforcement due to a lack of consideration for organizational capabilities and dynamic competition principles.

Traditional antitrust analysis focuses on static models and price effects and overlooks the innovation-driven nature of modern competition. Using recent merger cases, the authors argue that competition authorities have misunderstood firm-specific capabilities, leading to flawed decisions that may stifle innovation. They advocate for a broader framework that integrates organizational capabilities and innovation potential into merger analysis to better support dynamic competition in modern markets.

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