In defence of the consumer welfare standard

EVER SINCE its first antitrust law passed in 1890, America has argued over what trustbusting is for. One school, named after Louis Brandeis, a judge, holds that big companies must be tamed because they corrupt politics and damage customers, competitors and staff. The other says the goal of antitrust is to protect the welfare of consumers, which can be enhanced by big, efficient firms. For decades the consumer approach has been ascendant, but now the consensus has frayed and trustbusters are heading in a Brandeisian direction. This is a mistake. Competition policy needs reforms, to correct past failings and to adapt to the digital economy. Yet it should continue to be based on the principle that consumers are what count.