FTC Commissioner Ohlhausen Delivers Remarks on International Antitrust Enforcement | Practical Law

FTC Commissioner Ohlhausen Delivers Remarks on International Antitrust Enforcement | Practical Law

Federal Trade Commission (FTC) Commissioner Maureen Ohlhausen delivered remarks on international antitrust enforcement before the US House of Representatives Committee on the Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust law.

FTC Commissioner Ohlhausen Delivers Remarks on International Antitrust Enforcement

Practical Law Legal Update w-002-5656 (Approx. 4 pages)

FTC Commissioner Ohlhausen Delivers Remarks on International Antitrust Enforcement

by Practical Law Antitrust
Published on 08 Jun 2016USA (National/Federal)
Federal Trade Commission (FTC) Commissioner Maureen Ohlhausen delivered remarks on international antitrust enforcement before the US House of Representatives Committee on the Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust law.
On June 7, 2016, FTC Commissioner Maureen Ohlhausen testified before Congress on international antitrust enforcement. Commissioner Ohlhausen focused her remarks on how the US antitrust agencies work with international agencies and the progress towards a more cohesive international approach to antitrust laws.

Antitrust Regime Expansion

Commissioner Ohlhausen noted that in the 1990s and 2000s, global adoption of antitrust laws accelerated rapidly. Now, with over 120 different competition authorities around the world, it is more important than ever to advocate for consistent best practices to avoid conflicting requirements or undue restrictions on international competition.
Commissioner Ohlhausen stated that the FTC and DOJ have been instrumental in developing two multilateral competition organizations, the International Competition Network (ICN) and the Organization of Economic Cooperation and Development (OECD). Commissioner Ohlhausen explained that the ICN works to identify and spread best practices and, as the premier source of competition policy, the OECD:
  • Provides an outlet for members to discuss antitrust concerns.
  • Develops studies on competition issues.
  • Issues guidance and recommendations for competition matters.
Commissioner Ohlhausen also noted that the FTC and DOJ maintain a network of bilateral relationships with international competition authorities and regularly engage in dialogue on antitrust issues with those authorities, including sharing US antitrust law best practices.
Commissioner Ohlhausen also identified three FTC initiatives to encourage international antitrust convergence, including:
  • The FTC technical assistance program, through which the FTC and DOJ share their expertise with newer antitrust agencies.
  • The US SAFE WEB Act, which allows the FTC to host international fellows from foreign competition authorities for several months to gain first-hand FTC enforcement experience.
  • Enforcement cooperation. In fiscal year 2015 alone, the FTC worked with foreign authorities on 35 investigations.

FTC Initiatives to Promote Best Practices

Commissioner Ohlhausen outlined various FTC initiatives to promote international adoption of antitrust enforcement best practices, including the ICN's:
  • Recommended Practices for Merger Notification and Review Procedures, which was implemented between 2002 and 2006 and addresses undue costs and burdens of multi-jurisdictional merger review.
  • Recommended Practices on the Assessment of Dominance, which provides an analytical framework for determining market power or dominance.
  • Guidance on Investigative Process, which sets out best practices for procedural fairness in antitrust investigations.
Commissioner Ohlhausen stated that the ICN guidance has been increasingly adopted throughout European and Asian antitrust regimes.

Ensuring Antitrust Due Process

Commissioner Ohlhausen noted the importance of due process in antitrust investigations, and explained that the FTC does not hesitate to contact and work with foreign antitrust enforcement agencies if they believe that agency's antitrust regulations are implemented without due process or based on protectionism.

Antitrust Enforcement in China

Commissioner Ohlhausen explained that the FTC has prioritized engagement with China's three anti-monopoly agencies, including the:
  • Ministry of Commerce (MOFCOM), overseeing mergers.
  • National Development and Reform Commission (NDRC), overseeing price-related conduct.
  • State Administration for Industry and Commerce (SAIC), overseeing non-price-related conduct.
After China enacted its Antimonopoly Law (AML) in 2007, the FTC has been continuously working with Chinese regulators on various aspects of the law, including relating to:
  • Cartel conduct.
  • Monopolization.
  • Anticompetitive mergers.
The FTC has also held workshops with each of the three antitrust authorities to share its merger experience and expertise.
Commissioner Ohlhausen noted that, though the FTC's and DOJ's work with Chinese authorities is a work in progress, particularly regarding transparency and fairness, MOFCOM recently adopted a simplified merger review procedure, which is one tangible result of FTC guidance.

Antitrust and Intellectual Property

Commissioner Ohlhausen concluded her remarks by touching on international intellectual property enforcement. Commissioner Ohlhausen noted that the FTC is concerned with other jurisdictions' use of competition laws to regulate prices for IP, particularly in China, where the AML prohibits unfairly high pricing and limits refusals to deal. Commissioner Ohlhausen stated that the FTC will continue to work with China regarding its concerns to ensure that innovation is not chilled.