Former FTC chair Tim Muris nailed it back in 2010:
- Be wary of competitor complaints. When a competitor tells government that its rival acts unfairly, the complaint should be viewed with great suspicion.
- Remember that there are no shortcuts. Having encouraged firms to succeed, we should not use that success to presume violations of competition law or to force the firm to justify its actions.
- Don’t define markets too narrowly. When something is truly innovative it often becomes the clear leader or creates a whole new product category, at least until someone else develops the next breakthrough.
- Don’t create disincentives for innovation. Complaining competitors often want innovators to be forced to share the source of their success, regardless of intellectual property rights. Nothing could be more destructive to the incentives for future innovation than rules that prevent innovators from reaping the full benefits of their work.
- Consider your remedy early and often. Even important cases, such as the American government’s against Microsoft, can be bedeviled at the remedial stage.