FTC v. Microsoft: all the news from the big Xbox courtroom battle
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The FTC wants to pick apart Dr. Bailey’s analysis here and confirm antitrust product markets and whether she made a hypothetical monopolist test:
FTC: You’re not offering an opinion on what the correct product market actually is in this case?
Bailey: I think that’s right. I think my opinions are around the data-driven evidence but also the documents and testimony that I’ve seen that speak to the relevant markets as Dr. Lee defined.
FTC: You never completed a hypothetical monopolist test, right?
Bailey: The hypothetical monopolist test is one way to think about identifying where that nexus of competition is. So all of the analysis that I’ve talked through yesterday, and the ones I talked to you now... they speak to substitution and gamer behavior, and that speaks to the nexus of competition.
FTC: You didn’t actually perform the test?
Bailey: I’m not sure what you mean by that. There’s many ways to perform that test, the work that I did speaks to that.
FTC: The term hypothetical monopolist test appears five times in your report. Each of those is in reference to the hypothetical monopolist test.
Bailey: I disagree that Dr. Lee did a hypothetical monopoly test. He says he did a critical loss test and he transforms that language into saying an aggregate diversion ratio and and I disagree that that’s what he did
