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Inside Compass Lexecon, one of the top antitrust consulting firms


Inside Compass Lexecon, one of the top antitrust consulting firms
Quartz
6 hrs ago
© Provided by Quartz
Boxed-up court documents from the antitrust trial between Apple and Epic Games.
Hundreds of economists at leading universities live a double life: By day, they conduct research, teach classes, and rub padded elbows at academic conferences. But by night, they moonlight as analytic mercenaries, helping to tear down or defend the world’s biggest monopolies. These academics work for economic consulting firms, and few firms are as feared and revered as 44-year-old Compass Lexecon, headquartered in Washington DC.
In legal jurisdictions from the US to the EU to China, the outcome of anti-monopoly lawsuits and merger reviews hinges on hard-to-answer economic questions: How much of the relevant market does a company control? What ....

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Washington takes on Big Pharma: Lower drug prices vs. fewer new cures


As drugmakers adjust to less revenue, however, it would result in eight fewer new drugs coming to the U.S. market in 10 years and up to 30 fewer new drugs over 20 years, the Congressional Budget Office said.
Drugmakers say setting an upper limit on prices in the Medicare prescription-benefit program while fining companies that don’t play ball, looks more like extortion.
“Under the bill, the government dictates where the negotiation starts and can impose a massive tax penalty on a company that doesn’t accept the government-set price. This isn’t what most people would call a ‘negotiation.’ This is a partisan bill that threatens the future development of new treatments and patient access to life-saving medicines while doing little to fix the broader affordability challenges people are facing,” said Brian Newell, spokesman for the Pharmaceutical Research and Manufacturers of America, a major industry group and lobbying force. ....

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How consultants will sway the outcome of the Epic v. Apple case


May 24, 2021
After lawyers for Epic Games and Apple wrap up their closing arguments in a high-profile antitrust lawsuit today (May 24), US district judge Yvonne Gonzalez Rogers will spend the next few months deliberating on her verdict. The outcome of the case will, in large part, hinge on one key question: How big is the market in which Apple’s app store operates?
In the case, Epic is attempting to prove Apple has a monopoly over the market for apps like Epic’s hit game Fortnite and that Apple is using its monopoly power to take an unfairly large cut of the profits developers make through in-app purchases. ....

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