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> Don't they violate anti-trust / competition laws?

You can't say "yes" or "no" to this question.

Exclusive deals do not automatically violate anti-trust / competition laws. If one of the companies involved has been found to have a monopoly then it is more likely they will.

From the Justice Dept on the Sherman Act:

Exclusive dealing is frequently pro-competitive, as when it enables manufacturers and retailers to overcome free-rider issues misaligning the incentives for these vertically-related firms to satisfy the demands of consumers most efficiently. For example, a manufacturer may be unwilling to train its distributors optimally if distributors can take that training and use it to sell products of the manufacturer's rivals. Other benefits can occur as well, as when an exclusivity arrangement assures a customer of a steady stream of a necessary input.

But exclusive dealing also can be anticompetitive in some circumstances. For example, exclusive dealing may allow one manufacturer, in effect, to monopolize efficient distribution services and thereby prevent its rivals from competing effectively.

https://www.justice.gov/archives/atr/competition-and-monopol...

The FTC says this:

As discussed in the Fact Sheets on Dealings in the Supply Chain, exclusive contracts between manufacturers and suppliers, or between manufacturers and dealers, are generally lawful because they improve competition among the brands of different manufacturers (interbrand competition). However, when the firm using exclusive contracts is a monopolist, the focus shifts to whether those contracts impede efforts of new firms to break into the market or of smaller existing firms to expand their presence. The monopolist might try to impede the entry or expansion of new competitors because that competition would erode its market position. The antitrust laws condemn certain actions of a monopolist that keep rivals out of the market or prevent new products from reaching consumers.

Sony has never been found to have a monopoly on gaming (and no a "monopoly on Playstation gaming is not the same thing").



Monopolist does not mean actual monopoly though. Also from the FTC:

Courts do not require a literal monopoly before applying rules for single firm conduct; that term is used as shorthand for a firm with significant and durable market power — that is, the long term ability to raise price or exclude competitors. That is how that term is used here: a "monopolist" is a firm with significant and durable market power.

https://www.ftc.gov/advice-guidance/competition-guidance/gui...


Indeed, the relevant term-in-law is "market power."


Yes, this is true.

I this Microsoft is going to struggle to persuade courts that Sony has the market power to exclude them from the computer gaming market though.




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