1. © Hogan & Hartson LLP. All rights reserved. Judges & Economics How Can Non-specialized Judges Deal with Antitrust Economics? ICN Annual Conference Moscow May 30 to June 1, 2007 Joseph G. Krauss Partner May 23, 2007

2. © Hogan & Hartson LLP. All rights reserved. 2 Risks of not having specialized judiciary Poorly shaped competition policy Significant distortions between policy as set by agency and policy as set by judiciary – Risk of decreased compliance increases Less legitimacy to agency actions Inordinate delay in imposing remedies Increased cost to agencies and to the parties

3. © Hogan & Hartson LLP. All rights reserved. 3 Benefits from having specialized judiciary Uphold and enforce sound agency decisions “ Check and balance ” to ensure agency decisions are sound – Improves quality of agency decision-making Greater legitimacy to agency decisions Faster enforcement of remedies

4. © Hogan & Hartson LLP. All rights reserved. 4 Steps Judges can take to become more specialized Obtain general training in economics Post graduate training Personal study Retain economic expert to assist in analysis – Should be used rarely – Examples: U.S. judges have used economic experts successfully Tribunal appointed experts in various countries

5. © Hogan & Hartson LLP. All rights reserved. 5 Steps agencies and parties can take to educate judges Oral and written presentations should be clear and concise Economic reports should be technically correct, but understandable Provide opportunities for training – Be sensitive to concerns of perceived bias/conflict of interest

6. © Hogan & Hartson LLP. All rights reserved. 6 Conclusions Judges are an integral part of formulating sound competition policy – Judges need to understand economic principles and how to apply them Incumbent upon agencies and private parties to finds ways to bring those economic principles to them in coherent and understandable way Create opportunities to train them outside of litigation Take advantages of opportunities during litigation to educate them – Numerous sources of information with ideas on how to implement these suggestions ABA Final Report, Economic Evidence Task Force, available at www.abanet.org/antitrust/at-reports/01-c-ii.pdf www.abanet.org/antitrust/at-reports/01-c-ii.pdf