Say a company needs to order a ball bearing or tires from an electronic catalog. Even that order involves an array of software and computer language standards that need to mesh smoothly. Now picture a flourishing exchange with supply-chain planning linked to legions of business partners and Internet sites around the world. Add other crucial back-office tasks, including financial accounting, shipment and manufacturing schedules, data storage and human resources. For good measure, throw in language barriers, foreign currencies and customs laws.
Supply chains are incredibly complex.
Deals increase opportunity for anti-competitive behavior and government scrutiny. When competitors get together, it nearly always raises antitrust questions. Rule says some B2Bs may be putting off dealing with some of the most troublesome issues, such as the sharing of information, which could raise suspicions about collusion. Others, he says, are obviously setting up sites without consulting antitrust lawyers. A monopsony gives companies the power to drive prices below competitive levels. ''There are real questions, because people are flying blind and potentially creating antitrust problems without knowing it,'' says Rule, now with law firm Covington and Burling.