The same logic applies to public subsidies for any good or service where producers enjoy significant monopoly power: Directprovision of public goods has market forces on its side, while subsidies for private purchases work against the market.
The fundamental point is that, in the presence of inelastic supply curves, demand-side subsidies face a headwind of adverse price effects, while direct public provision gets a tail wind of favorable price effects.
The Supreme Court ruled in the case that income taxes on interest, dividends and rents were direct taxes and were, therefore, unconstitutional because they violated the Constitutional provision that direct taxes be apportioned.
"Either merger would make it more difficult for other exchanges to compete with LSE in trading UK equities due to both bidders direct control or influence over the provision of clearing services, " it added.