x.com/micsolana/status/2099125328740487575
1 correction found
there is nothing stopping companies from coordinating on safety issues.
That overstates the law. Companies can collaborate on safety, but competitor coordination is still limited by antitrust law and is lawful only with safeguards.
Full reasoning
U.S. antitrust authorities explicitly say competitor coordination is not unconstrained.
The FTC's guide on Dealings with Competitors says that while competitors sometimes need to collaborate, "there are antitrust risks when competitors interact to such a degree that they are no longer acting independently" and some agreements among rivals are illegal. The FTC's Spotlight on Trade Associations adds that safety-related collaboration is allowed only "with adequate safeguards" and that forming an industry group does not shield joint activities from antitrust scrutiny. It specifically warns that "safety codes" can be unlawful if used as a disguised means of fixing prices.
So the accurate version is: companies can coordinate on safety issues in some circumstances, but there is something stopping unrestricted coordination — antitrust law and the need for compliance safeguards. Saying there is "nothing" stopping such coordination is too absolute and conflicts with the FTC's published guidance.
2 sources
- Dealings with Competitors | Federal Trade Commission
Such dealings often are not only competitively benign but procompetitive. But there are antitrust risks when competitors interact to such a degree that they are no longer acting independently, or when collaborating gives competitors the ability to wield market power together.
- Spotlight on Trade Associations | Federal Trade Commission
When these activities are done with adequate safeguards, they need not pose an antitrust risk. But forming a trade association does not shield joint activities from antitrust scrutiny... It is illegal to use information-sharing programs, or standardized contracts, operating hours, accounting, safety codes, or transportation methods, as a disguised means of fixing prices.