What should courts to prioritize in determining antitrust cases: measurable welfare effects, or the protection of competitive rivalry itself? The Consumer Welfare Standard and the Protect Competition Standard offer different answers.
We compare the Consumer Welfare Standard (CWS) and the Protect Competition Standard (PCS) in antitrust. While the two standards are often viewed as mutually exclusive alternatives, there is a larger overlap between the two standards than is usually acknowledged. We first delineate each, recount their respective origins and identify the main supporters of each view. We then compare the two standards across several dimensions: we analyze the practical differences between the two standards in merger and monopolization cases; analyze their fidelity to Congressional intent and to Supreme Court precedent; and discuss how the two standards are connected to normative economic theory. Finally, we discuss the social welfare implications of the differing goals of the two standards. It is our hope that this piece may assist policy makers, courts, and antitrust practitioners better understand the two standards and how they can be more effectively and conscientiously applied.
