In a letter to the U.S. Department of Justice, the American Antitrust Institute (AAI) called on the agency to block the proposed merger of retail pharmacy and PBM giant CVS and Big 5 health insurer Aetna. CVS-Aetna would pair up the largest retail pharmacy chain and one of the two largest PBMs with the third largest health insurer in the U.S. The proposed merger raises a number of questions for competition and consumers. The AAI letter focuses on the merger’s potential to enhance the incentive of CVS-Aetna to exclude rivals and facilitate anticompetitive coordination among health insurers served by PBM CVS-Caremark. CVS and Aetna already wield significant market power in the retail pharmacy, PBM, and health insurance markets. High concentration in these markets exacerbates competitive concerns. Market idiosyncrasies heighten the proposed merger’s potentially anticompetitive effects. These include the role of health insurers in paying for most prescriptions filled and of PBMs in managing the flow of prescription drugs to millions of Americans, and PBM markets that lack important transparency.
In a white paper released today “Realigning Merger Remedies with the Goals of Antitrust,” the American Antitrust Institute makes the case for why remedies policy may be at an important inflection point. The paper notes that we do not yet know the full extent to which rising concentration, slowing rates of startups, and widening inequality gaps are the product of the lax antitrust enforcement that has prevailed in U.S. for three decades. But as the story continues to unfold, it remains clear that merger enforcement should be high on the antitrust agenda.
2018 marks the American Antitrust Institute’s 20th anniversary as the leading independent, nonprofit organization devoted to promoting competition that protects consumers, businesses, and society. In celebration of this important milestone, on Thursday, June 21, 2018, the American Antitrust Institute will host its 19th Annual Conference “Antitrust at a Crossroads: Plotting the Policy Course for the Next Decade.”
The American Antitrust Institute (AAI) seeks to preserve the effectiveness of antitrust class actions as a central component of ensuring the vitality of private antitrust enforcement. As part of its efforts, AAI issues periodic updates on developments in the courts and elsewhere that may affect this important device for protecting competition and consumers. This update covers developments since our Fall 2017 update.
The American Antitrust Institute welcomes Dan Drachler of Zwerling, Schachter & Zwerling, LLP to its Advisory Board.
Today, AAI issued the white paper "Revisiting Antitrust Immunity for International Airline Alliances." The paper makes the case for why the U.S. Department of Transportation (DOT) should revisit its policy surrounding grants of antitrust immunity for the international airline alliances. It describes the implications of immunized alliances for domestic competition and consumers, particularly in light of a decade of consolidation among U.S. alliance carriers.
On Thursday June 21, 2018, the American Antitrust Institute will host its 19th Annual Conference “Antitrust at a Crossroads: Plotting the Policy Course for the Next Decade.” Experts from law, economics, and policy will offer insight via four panels:
The American Antitrust Institute welcomes Kimberly A. Justice to its Advisory Board.
The American Antitrust Institute (AAI) has filed an amicus brief asking the U.S. Supreme Court to deny foreign governments effective veto power over application of the U.S. antitrust laws.
The American Antitrust Institute (AAI) filed an amicus brief asking the U.S. Supreme Court to deny “public entities” a special right to an immediate, automatic appeal whenever they lose a motion claiming they are exempt from Sherman Act liability under the state-action doctrine. AAI argues that allowing an automatic appeal would significantly burden antitrust plaintiffs and the judicial system and is not warranted under the law.