Invitational Symposium: Antitrust Challenge of Multi-Channel Distribution in the Internet Age

This cutting-edge, interdisciplinary symposium will include presentations by noted scholars, business leaders, and experienced practitioners with expertise in antitrust law, economics, and marketing. Presentations will examine the nature and occurrence of cross-channel shopping, research shopping, multi-channel distribution, retailing and shopper marketing and the implications each holds for antitrust thought and practice. A concluding roundtable will invite participants to share their ideas and reactions. For information on participating or sponsoring this event, please contact aai@antitrustinstitute.org.

Background:

Evolving developments in multi-channel distribution and retailing have profound implications for antitrust. The ability of consumers to shop across channels (and particularly through the Internet) leads to the convergence of formerly dispersed geographic markets in ways that challenge extant approaches to market definition and the assessment of market power. Recognition of the benefits of cross-channel shopping is also forcing reexamination of free riding as a primary justification for vertical restraints. Other implications for antitrust are yet to be identified.

Just a few years ago, when purchasing a product, consumers typically relied upon a single channel of distribution to do so. Consumers learned about a product, considered it relative to other alternatives, transacted their purchase and sought follow up service and support in the same channel ofdistribution. Researchshowedthatwhicheverchannelconsumersoptedfor,theystayedwithinit from beginning to end. Today, consumers are shopping for a product in one channel, buying it in another, and then returning it in yet another. Enabled by technology, especially the Internet, consumers are increasingly engaging in cross-channel shopping, research shopping across different channels, and finding new and diverse “pathways to purchase.”

Marketers and retailers have responded to these changes through the development of multi-channel distribution systems and marketing strategies. Distributing and strategizing across multiple channels that comprise a larger system is now the rule rather than the exception and shopper-directed strategies are becoming more and more common. Together these efforts are intended to develop and harmonize different distribution channels with the way in which a consumer actually shops and to influence consumers’ behavior along their pathway to purchase. Rather than trying to limit or otherwise discourage consumers from shopping across channels, marketers and retailers are embracing this growing consumer behavior; coordinating their multi-channel systems to the way that consumers desire to shop and adopting strategies of shopper marketing to influence a consumer’s purchase journey.

The coordination of distribution channels to the cross-channel shopping preferences of consumers together with strategies of multichannel distribution and retailing is revealing new pricing strategies and alternatives to prior practices addressing free riding. The antitrust field is only now becoming aware of these changes and their potential implications. We look forward to an informative and direction-setting symposium.