City Research Online

Abstract

Competition lawyers often refer to schools of thought. While these constructs have value, they are not without risks. This chapter problematises the use of schools in antitrust by exploring how contrasting groups from different historical periods may artificially exaggerate disagreements between them. It does so by revisiting the purported clash between “Ordoliberalism” and “the Chicago School” on antitrust policy towards big businesses. Ordoliberal antitrust is commonly depicted as recommending the breakup of large firms, contrary to the hands-off enforcement suggested by the Chicago School. Although ample evidence supports these widespread characterisations, the alleged divergence between them is a consequence of fixing both groups at different points in time. By only comparing Ordoliberalism from the 1930s and 1940s with Chicagoan literature from the 1950s onwards, we are not comparing historical like with like. When analysed in tandem, considerable agreement and a simultaneous period of evolution are visible. Both advocated antitrust hostility towards big business in the 1930s and 1940s, before softening from the 1950s. This is demonstrated by bringing into focus the missing historical counterparts: “Old” Chicago, contemporaneous with the usual depiction of Ordoliberalism; and the “New” Ordoliberalism of the Social Market Economists, which developed alongside the well-known Chicago School. Furthermore, the narrative of a sharp contrast overlooks how key protagonists associated with each school – particularly Franz Böhm and Aaron Director – changed their views on large firms over time. When comparing like with like, it is the similarities of Ordoliberal and Chicagoan antitrust, not the differences, that really shine through.

Publication Type:	Monograph (Working Paper)
Additional Information:	Copyright, 2024, the authors.
Publisher Keywords:	Competition Law; Antitrust; Ordoliberalism; Chicago School
Subjects:	K Law > K Law (General)
Departments:	The City Law School The City Law School > Academic Programmes The City Law School > CLS Working Paper Series
SWORD Depositor:	Symplectic Administrator

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