2016 · 63 citations · 0 references
LawBusiness LawCompetition LawAntitrust LawCompetition LitigationCompetition PolicyAdverse SelectionAntitrust ComplianceAntitrust EnforcementAntitrust PolicyAntitrust RemediesAntitrust EconomicsCustomer Service CallsDurable Goods OwnershipDurable Goods PricingEquipment Maintenance CostsInformation Asymmetry In AftermarketsMaintenance Repair ManualsProduct Liability Conflicts
Many recent antitrust cases concern aftermarkets: markets for goods or services used together with durable equipment but purchased after the consumer has invested the equipment. Examples include computer parts, software upgrades, repair manuals, and training. Durable goods manufacturers are often the dominant providers of aftermarket products. The cases involve a variety of alleged anticompetitive aftermarket behaviors by durable goods manufacturers, especially ties between proprietary and non-proprietary aftermarket services. For example, equipment maintenance has been tied to: parts;1 software upgrades;2 diagnostic software and manuals;3 engineering changes and timing diagrams;4 and emergency service calls.5 In all of the cases, the plaintiffs allege that customers are locked in by their prior investment the manufacturer's