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Original Articles

Predatory Innovation: A Step Beyond? (Understanding Competition in High-technology Markets)

Pages 7-33 | Published online: 21 Jul 2010
 

The idea of a direct relationship between innovation and progress must be reconsidered. Innovation, in other periods of History merely pursued for the sake of Mankind, eventually turned into an grail for companies willing to see their sales increased. The last decades had witnessed another turn of the screw in that identification: innovation may be used as a weapon to destroy rivals and take over a market, regardless of any considerations of progress. Competition law is not foreign to these new circumstances. The inclusion of innovation as a variable in the context of an exclusionary strategy entails not only an important aggression to free competition, but to social welfare. Due to the novelty of these practices, competition law is still adapting itself to the new scenario. This paper explains the underlying complexity of the study of predatory innovation, establishing the foundations for its proper understanding and subsequent approach of the conclusions to market operators, legislators, judges and to society itself.

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