Perfect Competition Is the Enemy of Good Competition, Cautions ITIF Ahead of House Antitrust Hearings

March 17, 2021

WASHINGTON— With hearings today in the U.S. House Judiciary Antitrust Subcommittee focusing on reviving competition, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, issued the following statement from Aurelien Portuese, ITIF’s director of antitrust and innovation policy:

Policymakers need to understand that perfect competition is the enemy of good competition, and that strengthening antitrust laws does not necessarily mean changing them. If Congress modifies antitrust laws in hopes of reaching a perfect competition framework, both consumers and innovation, taken as a whole, will become collateral damages of unreasonable reforms. 

It is indeed important for antitrust enforcement to be adapted to protect innovation incentives in antitrust interventions, yet laws must not necessarily be changed. (As shown in last week’s Senate hearing, experts across the political spectrum agree that current antitrust legislation is flexible enough to address the challenges of our time.) Instead, U.S. Congress should focus on increasing resources for the Federal Trade Commission, as Sen. Amy Klobuchar’s bill recommends. This is the way to strengthen antitrust enforcement, benefit consumers, and boost innovation. 

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Perfect Competition Is the Enemy of Good Competition, Cautions ITIF Ahead of House Antitrust Hearings