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Mises Economics Blog

Theology & Market Power

October 21, 2009 1:21 PM by S.M. Oliva (Archive)

Antitrust theology teaches us that in order to preserve a "free market," the government must apply different sets of rules to businesses based on the perceived "market power" of a given firm. In particular, if a firm is deemed to possess "market power" through the acquisition of a "monopoly" over a defined market, it is repugnant to antitrust principles for said firm to undertake any action that might encourage a customer to switch from a competing provider. Thus, competition is preserved by outlawing certain forms of competition.

With that in mind, I raise a practical question: What exactly is the Vatican trying to get away with?

The Vatican said it will make it far easier for disgruntled Anglicans to convert to Catholicism, in one of Rome's most sweeping gestures to a Protestant church since the Reformation.

A newly created set of canon laws, known as an "Apostolic Constitution," will clear the way for entire congregations of Anglican faithful to join the Catholic Church. That represents a potentially serious threat to the already fragile world-wide communion of national Anglican churches, which has about 77 million members globally.

[ . . . ]

In a news conference Tuesday, Cardinal William Levada, head of the Vatican's office on doctrine, described the measures as a step in the Holy See's long efforts to heal the rift between Roman Catholicism and Anglicanism. He said they are a response to requests from Anglicans around the world seeking to join the Catholic Church.

Obviously, the Vatican is engaged in a course of anti-competitive conduct designed to maintain its monopoly over "Earth-based Roman Catholic theological services." The Vatican admits it wants to reduce, and ultimately eliminate, competition between the Holy See and the Anglican Communion. By any antitrust standard (especially the European Union's standard), the Vatican is thumbing its nose at the supremacy of antitrust and competition law.

Of course, I'm not holding my breath for the Justice Department to start an investigation of the "Catholic Cartel." Unless the Vatican offers Anglican converts a free web browser. Then there will be hell to pay.

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Comments (6)

  • jeffrey

    Skip, that is a hilarious commentary. Only you could pull this off, and with such grace. Thank you so much.

    Published: October 21, 2009 2:27 PM

  • pussum207

    I'm thinking that the presence of at least some network effects in organized religion (not too mention scale economies) can only heighten the DOJ's concern.

    Published: October 21, 2009 3:43 PM

  • Ohhh Henry

    Watch out Vatican, the DoJ and the EU back their canon with cannons.

    Published: October 21, 2009 4:03 PM

  • waler

    No it's not an aqusition of Anglican churches by Vatican. It is just a special offer to not very loyal Anglican customers with aim to increase a client base of Roman-catholics :-)

    In this case it is not subject of any anti-trust legislastion. It is just a clever marketing.Vatican offers some special conditions to those leaving Anglicans to Roman catholics.

    Vatican also uses a very cheap worth of mounth communication strategy - no ads, no posters - media infor themselves fo free.

    Published: October 22, 2009 9:19 AM

  • caveat bettor

    This reminds me a bit of PEP buying back the PAS and PBG they sold off a long time ago.

    Published: October 23, 2009 2:29 PM

  • Brian Macker

    Not a very good analogy since the Vatican does have monopoly powers in many a country. Monopolies granted by the state. Anglicans have a monopoly in England. So these religions really don't play fair.

    Published: October 24, 2009 12:45 PM

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