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Michael Kades

Articles by Michael Kades

A Canary in the Coal Mine for the Failure of U.S. Competition Law: Competition Problems in Prescription Drug Market

16 days ago

Michael KadesDirector, Markets and Competition Policy, Washington Center for Equitable GrowthSubcommittee on Competition Policy, Antitrust, and Consumer Rights:Prescription for Change: Cracking Down on Anticompetitive Conduct in Prescription Drug Markets

July 13, 2021

Thank you, Chairwoman Klobuchar and Ranking Member Lee, for the opportunity to testify about the critical issues of competition and prescription drug markets. Antitrust is, to quote Sen. Klobuchar, “cool again.” The president’s executive order signed last Friday and his accompanying remarks are testament that we are in an antitrust moment as dramatic as any since 1914, when Congress passed the Clayton Act and created the Federal Trade Commission.

All too often in the press or on social media, competition and

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The CREATES Act shows legislation can stop anticompetitive pharmaceutical industry practices

May 27, 2021

In December 2019, Congress passed the Creating and Restoring Equal Access to Equivalent Samples, or CREATES, Act, bipartisan legislation to stop anticompetitive strategies that delay competition in pharmaceutical markets and increase prescription drug costs. The act incorporates polices advocated by the Washington Center for Equitable Growth.

The CREATES Act strengthens the 1984 Hatch-Waxman Act, which itself has saved American consumers and the U.S. healthcare system trillions of dollars (more than $1 trillion between 1999 and 2010 alone) by establishing a process for generic drug producers to bring their products to the marketplace. Even more money could have been saved, but some brand-name drug manufacturers, which enjoy monopoly or near-monopoly profits, have found ways of

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Statement for the Record by Michael Kades for the House Committee on Oversight and Reform

May 18, 2021

Michael KadesDirector, Markets and Competition PolicyWashington Center for Equitable GrowthStatement for the RecordHouse Committee on Oversight and Reform“Unsustainable Drug Prices (Part III): Testimony from AbbVie CEO”May 18, 2021

This committee has done important work investigating prescription drug prices and the burden they place on both Americans’ pocketbooks and their health. As a former litigator and regulator with the Federal Trade Commission for almost 20 years, I hope to offer some historical context in which to understand the issues confronting the committee today.

Too often, too many pharmaceutical companies focus their innovation on new ways to delay competition, increase profits, and aggravate the burden on Americans struggling to pay their healthcare costs

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The Merger Filing Fee Modernization Act is a down payment on the future of antitrust enforcement

May 6, 2021

The Senate Judiciary Committee is likely to approve a bipartisan antitrust bill soon that will be a down payment on reviving effective antitrust enforcement in the United States. The Merger Filing Fee Modernization Act of 2021, introduced by Sens. Amy Klobuchar (D-MN) and Charles Grassley (R-IA), would increase enforcement resources for the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice by more than $154 million, or almost 30 percent. It would also adjust the merger filing fees system so that fees would more equitably fall on larger deals.

Since early 2018, the Washington Center for Equitable Growth has focused on the need for policymakers to increase funding for antitrust enforcement. A 2019 report, titled “The state of U.S. federal

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Testimony by Michael Kades before the Subcommittee on Antitrust, Commercial, and Administrative Law on digital markets

October 1, 2020

Michael KadesDirector, Markets and Competition PolicyWashington Center for Equitable Growth“Proposals to Strengthen the Antitrust Laws and Restore Competition Online”Subcommittee on Antitrust, Commercial, and Administrative LawOctober 1, 2020

Thank you Chairman Cicilline and Ranking Member Sensenbrenner and full committee Chairman Nadler and full committee Ranking Member Jordan for the honor of testifying before this Subcommittee on competition and digital markets.

I am the Director of Markets and Competition Policy at the Washington Center for Equitable Growth. We seek to advance evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. The exploitation of monopoly power across the U.S. economy threatens innovation, stifles growth, and

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The curious case of the federal prosecutor who sided with defendants

August 25, 2020

A top story posted on a LinkNYC near Times Square in New York City, February 2020.Antitrust policy has been front and center in U.S. public policy debates over the past few years. The House Judiciary Committee recently completed its investigation into digital markets. Senate Democrats introduced multiple bills to reform antitrust laws. Even the comedian Jon Oliver devoted an episode of his show to concentration and market power.

The leadership at the Antitrust Division of the U.S. Department of Justice and U.S. Attorney General William Barr missed the memo. Antitrust enforcement by the Department of Justice is at historic lows, yet the Department of Justice is breaking new ground in one area—siding with defendants in antitrust actions brought by other enforcers, the Federal

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Hearing with tech CEOs sets stage for new legislation to tackle anticompetitive conduct by dominant firms in the U.S. economy

August 10, 2020

The CEOs of Apple Inc., Inc., Facebook Inc., and Alphabet Inc.’s Google unit testified in late July.The CEOs of Apple Inc., Inc., Facebook Inc., and Alphabet Inc.’s Google unit testified in late July before the House Judiciary Committee’s Antitrust, Commercial, and Administrative Law Subcommittee. None of the companies could have been happy with the closing remarks by subcommittee Chairman Rep. David Cicilline (D-RI): “Today, we’ve had the opportunity to hear from the decisionmakers at four of the most powerful companies in the world. This hearing has made one fact clear to me—these companies as they exist today have monopoly power. Some need to be broken up; all need to be properly regulated and held accountable.” That statement got the notice of multiple

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Antitrust experts call on Congress to address failings in antitrust law to preserve competition and prevent monopolies in digital marketplaces

May 4, 2020

A group of the nation’s top U.S. antitrust experts told Congress this week that outdated and bad economic theory has undermined antitrust enforcement, allowing dominant companies to gain an unfair advantage in the marketplace to the detriment of other businesses and consumers, innovation, and productivity growth. These prominent experts called on Congress to revise current law to align it with modern economic theory and to fix harmful judicial rules: “The signatories to this letter agree that antitrust enforcement has become too lax, in large part because of the courts, and that Congress must act to correct the state of antitrust enforcement.”
The statement, a “Joint Response to the House Judiciary Committee on the State of Antitrust Law and Implications for Protecting

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Unlocking Antitrust Enforcement: New Yale symposium examines proposals to make antitrust enforcement more effective

May 24, 2018

The Yale Law Journal today published a symposium, “Unlocking Antitrust Enforcement,” based on papers that were presented at an event the Washington Center for Equitable Growth co-hosted with the Program on Law and Government at American University Washington College of Law in October, 2017. Leading scholars and practitioners discussed nine proposals for more vigorous enforcement of existing antitrust laws. Videos of the discussions are available online.
Antitrust, in the words of Senator Amy Klobuchar (D-MN), is now cool to talk about. Last fall, the comedian commentator John Oliver devoted a segment of Last Week Tonight to corporate consolidation. This popular interest mirrors a renewed academic focus on the state of competition and monopoly power in the economy. Recent research

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