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Antitrust in Radio Frequency Identification

Background

Radio-frequency identification (RFID) technologies aid in the identification and recovery of companion animals, including dogs, cats, birds, horses, and other pets. One participant in the industry was accused of antitrust violations due to tying of pet RFID scanners to microchips by use of encryption. This participant was also accused of using the threat of patent litigation to foreclose another participant from entering the U.S. marketplace for implantable microchips.


Our Analysis

Intensity performed an analysis of the effects on competition from actions alleged to violate antitrust laws. Intensity also evaluated the financial impact of the anticompetitive conduct in the marketplace to determine an appropriate measure of economic damages.

Our work involved an examination of the pertinent industries, an identification of the relevant antitrust markets, and an assessment of market power. Intensity analyzed anticompetitive conduct and its financial effects in relation to other factors influencing industry performance. Intensity evaluated product sales performance in relation to pricing, functionality, sales strategy, product distribution, industry standards, and network effects, among other factors.