U.S. antitrust regulatory authorities generally view the creation of R&D alliances among businesses in the same industry as anticompetitive, even if the alliance shares its research with all alliance participants.

Question

Quizplus · Accepted Answer

U.S. antitrust regulatory authorities do not generally view the creation of R&D alliances among businesses in the same industry as anticompetitive, as long as the alliance does not have the effect of reducing competition among the participating businesses. The key factor is whether the alliance leads to a reduction in competition, which is judged on a case-by-case basis. Sharing research with all alliance participants can actually lead to greater innovation and competition in the industry.

US Antitrust Regulatory Authorities Generally View the Creation of R&D