The Antitrust Cop and the Tech Industry

Christine A. Varney, the nation's top antitrust cop, is trying to pull off a delicate balancing act. She wants to reinvigorate antitrust policy after the laissez-faire years of the Bush Administration. Yet she also wants to avoid interfering with companies that compete vigorously but fairly. "This job is making sure the competitive marketplace is free from obstacles and barriers," says Varney, whose official title is Assistant Attorney General at the Justice Dept. "We are thinking a lot about where bottlenecks might be in certain industries. If we can break through them it would be good for consumers." Varney says the Justice Dept. will be taking a look at a range of industries including technology. She wants to update antitrust law for the Digital Age. Varney says tech businesses are unusually vulnerable to concentration of power because of what are known as network effects. The idea is that the more people join a network, the more powerful that network becomes. She thinks Justice should watch for abuse within such networks, and be ready to act quickly. "In a network setting, you can tip into a dominant player pretty fast," she says. "You want to keep the competitive playing field open and vigorous."