Partner Eric Emch coauthored an article with David C. Kully in Cartel & Joint Conduct Review that examines the issues surrounding partial cross-ownership among firms. Antitrust practitioners recognize that partial cross-ownership among firms has the potential to harm competition.
This article discusses the traditional economic understanding of the effects of cross-ownership and explains how antitrust agencies and courts have applied this understanding in enforcement actions. The authors go on to look at recent empirical work on the impact of large institutional investor cross-ownership of shares of competitors in concentrated industries, as well as criticisms of that work. The uncertainties that exist demand continued examination for a better understanding of how recent research challenges traditional thinking.