Antitrust - Morgan - Spring 2004.doc

8/13/2019 Antitrust - Morgan - Spring 2004.doc

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ANTITRUST OUTLINESPRING 2004

Background and Early Cases – The First Period

A. The Case of Monopolies, 1603

a. Complaint of monopolization of play car!" ca!# i! a$o%t tryin& to #nforc# a monopoly&rant# $y t'# (%##n to '#r clo!# fri#n. )arcy claim! '# 'a! a monopoly* an tri#! toma+# a polic# ar&%m#nt in fa,or of it* nam#ly* t'at playin& car! i! a i!traction* an iti! appropriat# t'at t'#!# l#!! #!ira$l# (%aliti#! $# controll# $y t'o!# -'o 'a,#&#ntl#manly (%aliti#!.

$. olin&/ co%rt o#!nt #nforc# t'# monopoly* $%t )arcy o#!nt &o to 1ail. Until t'#S'#rman Act* t'# &#n#ral approac' to monopoli#! -a! !imply not to #nforc# t'#m.

c. Co%rt &i,#! 4 r#a!on! -'y monopoli#! ar# $ai. Ta+#! a-ay 1o$! from ot'#r p#opl#ii. Too m%c' pri,at# &ain at t'# #p#n!# of t'# p%$lic 3i.#. pric#! ri!#* (%antify

fall!* (%ality fall!5. A Not# on t'# Economic! of 6onopoly

a. Principl# of !carcity/ cant 'a,# #,#ryt'in& -# -ant -7o any conc#rn for co!t$. P#opl# act !o a! to maimiz# t'#ir o-n !#lf int#r#!tc. Lif# i! li,# at t'# mar&in!/ -# con!tantly ma+# 1%&m#nt! a$o%t 8a littl# mor# of t'i!9

an 8a littl# l#!! of t'at9. :# #al -it' #ac' ot'#r in mar+#t!/#. T'# (%#!t for allocati,# #ffici#ncy/ -ant to $# at a point -'#r# t'#r# i! no com$ination

of pro%ction or #c'an&# t'at co%l ma+# anyon# $#tt#r off -7o !om#on# #l!# -or!#off.

i. Allocati,# #ffici#ncy i! t'# i#a t'at -# -ant to cr#at# a !y!t#m t'at &i,#!&oo!7!#r,ic#! to t'o!# -'o ,al%# it mo!t.

ii. Pro%cti,# #ffici#ncy/ !om#tim#! it ta+#! a fairly lar&# pro%cti,# capacity topro%c# a partic%lar &oo at t'# lo-#!t po!!i$l# mar&inal co!t.

iii. )ynamic #ffici#ncy/ !om#tim#! to ac'i#,# t'i! n## to &i,# %p !om# allocati,##ffici#ncy an !om# pro%cti,# #ffici#ncy.

f. o- pric#! ar# !#t in comp#titioni. Pric# i! !#t -'#r# 6C ; 6R

&. )i!tortion! impo!# $y monopoly/i. -ill loo+ -'#r# 6C m##t! 6C* an t'#n mo,# %p to t'# #man c%r,# to !#t

t'# pric#.ii. Pro$l#m of ):L

C. Mitchel v. Reynolds, 1711a. On# $a+#r $%y! a $%!in#!! from t'# anot'#r* an a&r##m#nt $y !#ll#r not to comp#t#

-it' $%y#r for a p#rio of < y#ar!" po!t# a <0l$ $on a! a &%arant##. S#ll#r com#!$ac+ an comp#t#! $#for# < yr! pa!!#" 5%y#r !%#! on t'# $on an !#ll#r! !ay! it!

%n#nforc#a$l# $7c it i! a contract in r#!traint of tra#.$. Co%rt t'o%&'t t'# contract -a! r#a!ona$l# an #nforc#a$l#. Say! t'i! -a!nt a &#n#ral

r#!traint of tra#* $%t a !p#cific7localiz# r#!traint. T'i! -a! a limit# monopoly for alimit# tim#* an if it -a!nt allo-#* t'#n t'# $%y#r -o%l 1%!t pay l#!! or not'in&.Co%rt !ay! t'at p#rmittin& #nforc#m#nt of t'i! typ# of arran&#m#nt p#rmit! tran!actionto occ%r t'at -# -ant to occ%r. T'i! int &%arant## a monopoly* only a ri&'t for t'i!!#ll#r not to comp#t#.

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If no on# 'a t'# city* t'#y -o%l $i -it'in t'# &ro%p* an t'# !poil! -o%l $# i,i#%p. T'i! i! cla!!ic pric# fiin&. irm! ar&%# t'at t'#y only controll# =0D of t'# #ntir#mar+#t an t'#r#for# co%lnt $# a monopoly. Al!o ar&%# t'at t'# #ntir# co%ntry-a!nt aff#ct# $7c t'# -inn#r! -#r# -innin& in t'#ir o-n city.

$. Taft 3for t'# co%rti. N## to %n#r!tan t'at t'i! act com#! from C7L an #,#ryt'in& ill#&al at C7L i!

ill#&al no-* pl%! Tran!H6i!!o%ri '#l t'at mor# can $# ill#&al.ii. )o#!nt t'in+ t'at all contract! in r#!traint of tra# ar# ill#&aliii. Tal+! a$o%t -'#n t'# r#!traint of tra# i! ancillary* !%c' a! an a&r##m#nt $y a

!#ll#r not to comp#t#* $y a r#tirin& partn#r not to comp#t#* $y a partn#r p#nin&partn#r!'ip not to o anyt'in& to comp#t# -it' t'# firm* $y a $%y#r of prop#rtyNot to %!# t'# !am# in comp#tition r#tain# $y t'# !#ll#r* an $y!#r,ant7a!!i!tant not to comp#t# -it' 'i! ma!t#r. E!!#ntially -ant to #nco%ra&#!om# tran!action! an ar# -illin& to p%t %p -it' a littl# r#!traint.

iv. )o#! not amit to propo!in& a r%l# of r#a!on to o !o -o%l $# 8to !ail on ar%l# of o%$t.9 Say! in!t#a t'at '#! comin& %p -it' a limit# #c#ption to t'##,#ry contract approac' *here the overall transaction is desirale and not inrestraint of trade *ill tolerate a -oderate, ancillary restraint of trade that helps

the +nderlyin" transaction "et done.c. S.C. lat#r affirm! t'# ca!#* $%t int aopt t'# ancillary r#!traint lan&%a&#. Too+ it a!

int#r!tat# comm#rc# ca!#.. T'i! i! !till a cla!!ic antitr%!t ,iolation

I. Cart#l!a. Ay!ton Pip# -a! on#" t'# cla!!ic on# i! OPEC.$. On# of t'# pro$l#m! fac# i! 8c'#atin&.9 Anot'#r on# i! &#ttin& #,#ryon# to 1oin. A t'ir

pro$l#m i! r#ac'in& an a&r##m#nt on -'at pric# to !#t.c. In a ca!# li+# Ay!ton Pip#* 'ar#r to c'#at $7c it -a! a p%$lic $iin& !y!t#m.

Monoolization and Merger

. tandard &il Co-pany of v. Ua. Roc+#f#ll#r &#t! in,ol,# in o%t pro%ction* an &#t! to t'# point -'#r# '# control!

B0D of t'# oil pro%ction* !'ippin&* r#finin&* an !al# of p#trol#%m an it! pro%ct!.a #al! -it' RR! to !'ip 'i! oil c'#aply* an !#t %p corp in N to 'ol an mana&#t'# !'ar#! of t'# partn#r!. 6a# it iffic%lt for n#- #ntrant!.

$. note/ t'#r# -a! no c'anc# t'at Roc+#f#ll#r -a! &oin& to -in t'i! ca!#%!tic# :'it# 3for t'# co%rt

c. :# !'o%l r#a t'# S'#rman Act in t'# !#ttin& of t'# C7L* -'ic' pro,i#! t'#fram#-or+. :it' > ?* loo+ for contract! t'at r#!trict !om#on#! fr##om an forc#!t'#m to lo-#r o%tp%t or rai!# pric#.

. Contract! ar# for$i#n t'at t#n to cr#at# a monopoly#. Cr#ation of t'# R%l# of R#a!on/ #part%r# from t'# i#a t'at #,#ry contract in r#!traint

of tra# -a! li+#ly to $# '#l ill#&al to on# t'at !ai t'#r# i! a partic%lar cla!! orarran&#m#nt! t'at ar# ill#&al 3t'o!# t'at -o%l $# ill#&al at C7L* allo- t'# firm to act a!a monopoli!t in ,iolation of > 2* or %n#r > ? in,ol,#! contract! $y -'ic' firm! a&r## to$#'a,# in a mann#r parall#l to !om#t'in& t'at -o%l ,iolation > 2.

f. E,#n %n#r t'i! r%l# of r#a!on* Co%rt fin! t'at Roc+#f#ll#r -a! -ron&. i! &oal -a! tori,# o%t comp#tition an t'i! -a! not a normal mo# of oin& $%!in#!!" '# -a!pr#,#ntin& p#opl# -'o -ant# to $# in t'# oil $%!in#!! from &#ttin& in. Al!o* t'# int#ntan p%rpo!# Roc+#f#ll#r 'a -a! to $# #cl%!ionary rat'#r t'an off#r t'# $#!t pro%ct.T'ir* -'at '# i -a! try to #liminat# t'# pot#ntiality of comp#tition H to pr#,#nt firm!

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from #nt#rin& t'# in%!try or r#mainin& in it -'o -o%l 'a,# $i t'# pric# $ac+ to t'#comp#titi,# pric#.

&. R#m#y/ i!!ol%tion of t'# corporation $ro+# t'# company $ac+ %p into t'# !#parat#littl# compani#! t'at 'a form# it* an t'# in%!try -a! t'#n a =0J firm in%!try.

arlan 3i!!#nt'. a a &oo r%l# in Tran!H6i!!o%ri 3all contract! in r#!traint of tra# ar# in,ali an

no- it! am$i&%o%!.F. T'# Att#mpt to monopoliz#

a. I! t'i! #no%&' to ,iolation > 2$. *ift 8 Co v. U, 1$0% / r%l# i! t'at yo% n## mor# t'an int#nt" it! not ill#&al to -ant to

$# a monopoly. N## to -ant to $# on#* act on it* an 'a,# a an&#ro%! li+#li'oo of!%cc#!!. 9ntent alone not eno+"h.

c. U .S. v. Ter-inal Railroad:i. ?4 RR t'ro%&' St. Lo%i! $o%&'t t'# !tation an $ri&# into St. Lo%i!. Conc#rn

t'at t'# RR! not in t'# &ro%p -o%lnt $# a$l# to cro!! t'# ri,#r. Co%rt fo%nt'at t'# con!oliation of all t'# rail !#r,ic# in St. Lo%i! ,iolation > 2* $%t t'#r#m#y -a!nt to $r#a+ it %p $7c t'#r# -a! only room for on# $ri&# an!-itc'in& yar in St. Lo%i!. Ct. !ai t'at t'# monopoly -o%l $# !ai to $# an

#!!#ntial facility 'a to $# ma# a,aila$l# to anyon# -'o n### to %!# it*$%t co%l c'ar&# a pric# t'at i! t'# !am# a! t'# ot'#r RR pai.

!ertical Restraints of Trade" Resale Price Maintenance

(. )r. Miles Medical Co-pany v. ohn ). 4ar 8 ons, 1$11 ;vertical restraint of trade<a. Alt'o%&' #ci# t'# !am# y#ar of Stanar Oil* t'i! -a! mont'! $#for# t'# RR* an

#ci# %n#r t'# 8#,#ry contract in r#!traint of tra#9 conc#pt. T'i! ca!# !till r#main!&oo la-.

$. )r. 6il#! !ol iff#r#nt m#icin#! all acro!! t'# co%ntry '# t'o%&'t t'at t'i! -a! acon!i&nm#nt contract an t'#r#for# '# -o%l $# a$l# to !#t t'# pric#. # co%l c'oo!#t'# min pric# an t'# !#ll#r r#c#i,# a portion of it" if t'# !#ll#r cant !#ll it* &o#! $ac+

to )r. 6il#!. #r# !om#on# &a,# t'# m#icin# to Par+* -'o ran a i!co%nt !tor#. 6il#!com#! in an -ant! an in1%nction to pr#,#nt Par+ from !#llin& it. )#f#n!# i! t'at t'i! i!a contract in r#!traint of tra# an t'# co%rt! ont #nforc# t'o!#. #r# t'# P i!nt!##+in& S'#rman Act r#li#f* $%t t'# !am# typ# a! in Mitchel .

c. Co%rt fin! t'at t'i! i! an %n#nforc#a$l# contract $7c it i! in r#!traint of tra# $7c-'ol#!al#r! ar# $%yin& &oo an r#!#llin& t'#m* !o titl# pa!!# to -'ol#!al#r!.

. 6il#! tri# to ar&%# t'at 'i! proc#!!#! -#r# !#cr#t an t'i! -a! analo&o%! to a pat#nt Co%rt !ai pr#,io%!ly !ai t'at a pat#nt 'ol#r can ma+# %!# of it contin&#nt on not%n#rc%ttin& t'# pric# $%t '#r# 6il#! 'ant appli# for a pat#nt* -'ic' -o%l 'a,#m#ant i!clo!in& t'# r#cip#.

olm#! 3i!!#nt/#. G#n#rally* it! a &oo i#a for p#opl# to 'a,# fr##om on contract. In a mar+#t -'#r#

t'#r# ar# m%ltipl# $ran t'# a$ility of any on# of t'#m to !#t a pric# -ont $# t'#irr#lation!'ip -it' t'# #al#r* $%t t'# pric# t'at comp#tin& pro%ct! ar# !ol for. 6il#!i!nt a$l# to control t'# pric# of all a!pirin* 1%!t 'i!" cant r#ally aff#ct c%!tom#r! $7ct'#r# ar# ot'#r man%fact%r#r!.

f. E,#n if olm#! i! ri&'t* !till mi&'t $# $#tt#r off !af# t'an !orry.M. U.. v. Col"ate 8 Co, 1$1$

a. Col&at# -a! #n&a&# in r#!al# pric# maint#nanc#. Pro!#c%tor c'ar&# a con!piracyan int nam# anyon# ot'#r t'an Col&at# ca!# i! i!mi!!# on t'i! $a!i! alon#.

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$. Co%rt !ai t'at -'il# a firm may not #!ta$li!' contract a! 6il#! i to r#(%ir# firm! to!#ll a &i,#n pric#* t'#y can aopt a !y!t#m t'at t'#y #al only -it' t'#ir fri#n!* ant'#ir fri#n! only !#ll at pric#! t'#y li+#* an t'#y -ont #al -it' t'#m if t'#y !#ll atl#!! t'an t'# pric# 3i.#. 6SRP.

c. If a firm only !%&&#!t! a pric# an only #al! -it' firm! t'at %!# t'at pric#* t'at i!iff#r#nt t'an 6il#! an not a ,iolation of > ?.

N. T'# Clayton Act a. S#ction 2 or$i! pric# i!crimination 3to 'a,# iff pric#! for iff p%rc'a!#r! of

commoiti#! %nl#!! pric# iff to r#fl#ct !'ippin& co!t!* #tc.$. S#ction = Ecl%!i,# #alin& arran&#m#nt! 3$%y from m#* cant $%y from ot'#r! J Tyin&

arran&#m#nt! 3$%y my rac(%#t* m%!t al!o $%y my t#nni! $all!c. S#ction 4 Tr#$l# ama&#! J atty! f##!. S#ction < If on# con,ict# in antitr%!t ,iolation* lat#r P! can &o $ac+ an !%# for

ama&#! -7o a&ain pro,in& p#r!on i act#. S#ction K La$or of '%man! not commoity 3!## la$or %nion! !t%ff a$o,#f. S#ction Corporat# m#r&#r! cant cr#at# comp#tition in r#!traint of tra#&. S#ction ?K Ri&'t to !%# for in1%nction for antitr%!t

O. T'# TC Acta. S#ction < All TC antitr%!t !t%ff on# %n#r S#ction <* #mpo-#r! TC to act

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The #econd or Rule of Reason Period – $%$& to $%'%

A. oard of City of Trade of Chica"o v. United tates, 1$1# a. 5oar of Tra# -a! -'#r# &rain -a! $o%&'t an !ol. = +in of !al#!/ 3? !pot !al#!/

!al# ma# aft#r t'# &rain 'a! arri,# an &#t it on t'# !pot" 32 f%t%r# !al#!/ !al#! fromlat#r t'at mont' or !om# tim# in t'# f%t%r#" an 3= !al#! to arri,#/ a&r##m#nt! to

#li,#r on arri,al &rain -'ic' i! alr#ay in tran!it or i! to $# !'ipp# -it'in !p#cifi#tim#. #r# t'#r# -a! a call r%l# in #ff#ct/ at ?/?< t'#r# -a! a call !#!!ion at -'ic' t'#pric# -a! fi# till t'# 5oar op#n# t'# follo-in& mornin&" any m#m$#r of t'# $oar-'o $o%&'t or !ol aft#r t'at tim# -o%l pay t'# call pric#. Go,t !ai t'i! -a! li+# acart#l* an #,#n %n#r RR it i! ill#&al for ominant $%y#r! an !#ll#r! to fi t'#ir pric#.) ar&%# t'at it -a! for t'# con,#ni#nc# an $#n#fit of t'# m#m$#r! !o p#opl# co%l&o 'om# an not -orry it ma# t'# 5oar t'# c#ntral plac# p#opl# cam# to #!ta$li!'pric# in t'# in%!try* an t'i! -a! clo!# to p#rf#ct comp#tition.

$. Go,t -ant# to !tri+# t'# #,i#nc# intro%c# $y t'# ) $%t %n#r t'# RR* yo% ont!tri+# t'# #,i#nc# $%t l#t t'# #f#nant p%t it on

5ran#i! 3for t'# co%rtc. Co%rt concl%#! t'at t'# factor! 1%!tify t'# r%l#. :'#n applyin& t'# r%l# of r#a!on*

5ran#i! loo+! at -'#t'#r it promot#! or #!troy! comp#tition* a! -#ll a! t'# nat%r#*!cop#* an #ff#ct of t'# r#!traint. It #liminat#! !#cr#t #al!* i! limit# in tim# an!cop#* an ma# it po!!i$l# for !mall#r firm! to #nt#r t'# $%!in#!!.

5. United tates v. U teel Co., 1$=0a. US !t##l -a! ?0 com$in# pro%c#r!* an controll# 0HB0D of t'# mar+#t at !om#

point* alt'o%&' no- 'a !'r%n+ to <0D. Co%rt r#1#ct! an #conomi#! of !cal# #f#n!#*$7c t'#y 'ant con!oliat# into on# firm. Unli+# Stanar Oil* t'# comp#titor! -#r#'appy. 5%t !till n## to %!# r%l# of r#a!on analy!i!. Sinc# US !t##l 'a !'r%n+* t'#r#-a! no lon&#r an #,il to $# corr#ct#.

$. %!tic# )ay 3i!!#nt / U.S St##l i! !till a $i& company it int &#t $i& $y pro%cin&$#tt#r !t##l at lo-#r pric#!* $%t $y coorinatin& in ,iolation of > ?. If yo% &#t to t'#

point -'#r# yo% ar# ,iolatin& > 2 $y ,iolatin& > ?* t'#n yo% 'a,# ,iolat# > 2 an cant#f#n on t'# &ro%n! t'at #,#ryon# li+#! yo%.

c. MMProf 6or&an li+#! )i!!#nt ,i#- '#r#* -'il# US St##l may 'a,# $##n 8nic#9 -'il#loo+# a $y antitr%!t7&o, li&'t* poi!# to $# 1%!t a! 8$a9 a! -a! -'#n formin& lat#r" ifma+in& 8nic#9 i! t'# t#!t* i!co%ra&# $#'a,ior antitr%!t t'#r# to !tim%lat#comp#tition*$y #nco%ra&in& co! to 8lay lo-9 an !#ll l#!!

. ar&%m#nt t'at t'i! i! t'# typ# of ca!# t'at &i,#! t'# RR a $a nam#.C. A-erican Col+-n 8 (+-er v. U, 1$=1

a. =K< m#m$#r mill! 3<D of t'# firm! in t'# mar+#t pro%cin& 'ar-oo &#t to&#t'#r -it'an op#n comp#tition plan i#a t'at t'#y -o%l pro,i# information to #ac' ot'#r*!%c' a! r#port! on !al#!* !'ippin&* r#port! on mont'ly pro%ction* an t'# r#port! -#nto%t to all m#m$#r!. L#tt#r! al!o -#nt o%t a$o%t an analy!i! of t'# mar+#t conition!

an %r&# t'# m#m$#r! to pro%c# l#!! an +##p t'# pric# %p. > ? pric# fiin& ca!#.$. Co%rt fin! t'at t'i! p%rpo!# -a! 1%!t !'ort of &#ttin& to&#t'#r to !#t pric#! an

pro%ction l#,#l!. T'# fact t'at #,#ryon# +n#- -'at t'# ot'#r! -#r# oin& allo-# t'#m#m$#r! to act -it' compl#t# +no-l#&# a$o%t -'at t'# con!#(%#nc#! -o%l $# oft'#ir o-n action!.

c. olm#! 3i!!#nt / -# li+# fr## !p##c'" t'#r# i! not'in& in t'# con%ct '#r# t'at $in!t'# m#m$#r! to any action #,#n $y m#r#ly !ocial !anction!.

. 5ran#i! 3i!!#nt / t'# fact t'at t'#r# i! information i!nt #,il* $%t rat'#r it ma+#!mar+#t! -or+ an t'#r#for# -# !'o%l p#rmit t'i! +in of #c'an&#. Information i!

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co!tly* an t'i! allo-! !mall pro%c#r! to fin o%t information an comp#t# -it' t'# $i&on#!.

#. T'# co%rt !imply &ot t'i! on# -ron& lat#r ca!#! !ay t'at t'#r# i! not'in& t'# pro'i$it!t'# #c'an&# of information -7o !om#t'in& mor#.

). Po!n#r Not#/ < In%!try Conition! for -'#n Oli&opoly i! Li+#ly

a. ir!t/ a conc#ntrat# mar+#t of !#ll#r! an a lac+ of frin&# mar+#t of !mall firm!.i. :'il# t'#r# i! no ma&ic n%m$#r!* if t'# lar&#!t 4 firm! ont total at l#a!t <0D

of t'# mar+#t* t'# n## to -orry i! ar&%a$ly lo-.$. S#con/ a !tanar pro%ct !ol primarily on t'# $a!i! of pric#

i. A&r##m#nt i! mor# li+#ly an #a!i#r -'#n t'# firm! 'a,# ro%&'ly t'# !am#co!t.

c. T'ir/ i!!%#! &oin& to t'# n## or at l#a!t t'# inc#nti,# to coll%#.. o%rt'/ in#la!tic #man at t'# comp#titi,# pric##. ift'/ an in%!try in -'ic' #ntry ta+#! a lon& tim#.

The (nterlay bet)een Patents and *ntitrust +a)

E. U v. E Co-pany, 1$=6a. Sal#! Plan/ GE !ol ir#ctly to r#tail#r! an -'ol#!al#r!* $%t GE !ai t'at t'#y o-n#

t'#m %ntil t'# con!%m#r $o%&'t t'#m. Similar to )r. 6il#!* $%t '#r# t'# Co%rt %p'ol!it. #r# t'# a&#nt! n#,#r too+ titl# GE -o%l $%y $ac+ -'at -a!nt !ol. Co%rt &o#!o%t of it! -ay to com# %p -it' m#t'oolo&y t'at a,oi! a )r. 6il#! r%l#* $%t Taft not#!t'at t'i! i!tinction -it' !#llin& on con!i&nm#nt o#!nt 'a,# anyt'in& to o -it' t'#fact t'#r# i! a pat#nt. Part of t'i! com#! from t'# c'an&# in attit%#! to t'# i#a t'atfirm! !'o%l $# a$l# to control t'# i!tri$%tion of it! o-n pro%ct!. T'i! i! 1%!t an a&#nta&r##m#nt

$. Lic#n!#/ GE allo-# :#!tin&'o%!# to %!# t'# pat#nt! pro,i# t'at :#!tin&'o%!#int !#ll for a lo-#r pric# t'an GE allo-#. Not an i!!%# -'#t'#r GE 'a a monopoly

t'at i! t'# point of a pat#nt. Taft !ay! t'at it -o%l 'a,# $##n fin# for :#!tin&'o%!#

to pro%c# t'# $%l$! an t'#n 'a,# GE i!tri$%t# t'#m %n#r it! nam#* !o t'i! !y!t#mi! fin# 1%!t allo-in& :#!tin&'o%!# to %!# it! nam# an !#ll it pric#-i!# a! if it !aiGE.

i. Not %ncommon for firm! to lic#n!# t'#ir pat#nt an !##+ to profit from royalti#!.c. Som# !ay t'at Taft &ot t'i! -ron& $#ca%!# GE mi&'t $# prot#ctin& it!#lf a&ain!t

comp#tition $y actin& a! cart#l -it' :#!tin&'o%!#.. tandard &il Co-pany ;9ndiana < v. U, 1$31

a. Ca!# of pat#nt poolin&/ a n%m$#r of compani#! 'a,# infrin&in& -ay! of pac+a&in&&a!olin# t'at Roc+#f#ll#r fi&%r# o%t 'o- to r#fin#* $%t it o#!nt pro%c# t'# #!ir#r#!%lt!. Crac+in& -a! a -ay to &#t mor# &a! an l#!! tar* an t'#r# -#r# a n%m$#r offirm! t'at 'a pat#nt! for conflictin& -ay! to o t'i!* $%t #ac' tim# on# tri# to anot'#r-o%l a!!#rt pat#nt infrin&#m#nt an t'# t#c'nolo&y -a! %!#l#!!. irm! #n! %p

cro!!Hlic#n!in& #ac' ot'#r in a pat#nt pool an #,#ryon# co%l %!# #ac' ot'#r!pat#nt!* $%t t'#y all 'a to a&r## to !#ll for t'# !am# pric#.

$. Co%rt fo%n! t'at t'#r# -ay no pro,#n monopoly or r#!triction of comp#tition in t'#pro%ction of #it'#r orinary or crac+# &a!olin#. 5#tt#r if #,#ryon# can $# fri#n! anp#rmit t'# pat#nt poolin&.

i. Lat#r ca!#! o c%t $ac+ on t'i! an !ay t'at -# ont -ant to !#ttl#.

7



Testing the +imits of the Rule of Reason

G. United tates v. Trenton 4otteries Co, 1$=7 a. Sanitary pott#r! a!!n #n&a&# in t'# man%fact%r# or i!tri$%tion of 2D of t'# toil#t!*

%rinal! pro%c# in t'# US. I!!%# in t'i! ca!# -a! a 1%ry in!tr%ction t'i! -a! acriminal ca!#* not on# for an in1%nction. )#f#n!# -ant# in!tr%ction t'at if -'at t'#y

i -a! r#a!ona$l#* t'#n t'#y cant $# con,ict#" )i!t 1%&# in!t#a !ai pric# fiin&p#r !# ill#&al* an )! -#r# &%ilty if 1%ry fo%n all#&ation! to $# tr%#.

$. Co%rt !ai t'at t'# (%#!tion i! not -'#t'#r t'# r#!%lt of a &i,#n arran&#m#nt i!r#a!ona$l#" t'# i!!%# i! -'#t'#r t'# practic# it!#lf i! anticomp#titi,#. C'oic# i!#liminat# $#ca%!# of t'i! practic#* $%t cant r#ally !ay -'#t'#r comp#tition i!po!iti,#ly or n#&ati,#ly aff#ct#. S#con* t'# i!!%# of -'#t'#r pric#! ar# r#a!ona$l#ar# for#clo!# $y Tran!H6i!!o%ri. T'i! practic# i! p#r !# %nr#a!ona$l# an t'i! +in of#f#n!# i! not a,aila$l# #,#n in a ca!# $#in& #ci# in a r%l# of r#a!on p#rio. &#ttin&to&#t'#r to #!ta$li!' pric# i! p#r !# %nr#a!ona$l# #,#n in a RR p#rio.

c. Appalachian Coals v U, 1$33 not r#a for cla!!* 1%!t m#ntion# in pa!!in&i. Go,t cr#at# a 1oint !#llin& a&#ncy for coal -'o!# 1o$ it -a! to !#ll coal

t'ro%&' a !in&l# a&#nt pric# fiin& arran&#m#nt. Part of Roo!#,#lt! !ol%tion

to t'# #pr#!!ion.ii. Co%rt fin! t'at #,#n t'o%&' t'i! partic%lar arran&#m#nt 'ant $##n manat#

$y t'# &o,t* it -a! a p#rio in 'i!tory -'#r# -# o%&'t to fin t'atanticomp#titi,# acti,iti#! -#r# r#a!ona$l#. olin& t'# plan ill#&al -o%l onlyr#!%lt in t'# firm! m#r&in&.

8



The Third Period, The Per #e Rule is -ing, $%./"$%0.

Horizontal Combinations in Restraint of Trade6ar+#t i,i!ion* &ro%p $oycott* monopolization

A. U.. v. ocony2'ac++- &il, 1$>0 ? price fi5in"

a. C'ar&# t'at c#rtain ma1or oil compani#! com$in# to rai!# pric#!* maintain# 'i&'pric#!* an rai!# r#tail pric#!. T'i! -a! not a ca!# -'#r# $i& oil compani#! &otto&#t'#r to try to ri,# !mall on#! o%t of $%!in#!!* $%t rat'#r it -a! !y!t#m $y -'ic'#ac' -o%l $# r#!pon!i$l# for $%yin& #c#!! o%tp%t of on# or mor# pro%c#r! on t'#!port mar+#t 3&a!olin# t'at i! r#fin# an r#ay for !al#. Pro$l#m in t'# mar+#t -a!t'at t'# co!t of pro%ction -a! lo-* an t'#r# -#r# many p#opl# ta+in& o%t oil* anonc# yo% !tart# rillin& it co%lnt $# capp# %# to pr#!!%r# pro$l#m!. :'#n t'#!mall pro%c#r! co%lnt !tor# t'#ir oil* t'#y !ol it at t'# c%rr#nt pric#* an #c#!!!%pply r#!%lt! an t'#y 'a,# to !#ll it at lo- pric#!. )i!t. %&# !ai t'# la- -a! t'atif yo% ar# lar&# #no%&' &ro%p an 'a,# t'# po-#r7a$ility to rai!# t'# pric#* an yo%!##+ to o t'at* it ,iolat#! > ? an cant #f#n t'at it -a! r#a!ona$l#" $%t if yo% cant!'o- t'at pric#! -#nt %p $7c of t'i! arran&#m#nt* cant fin &%ilty. Co%rt of App#al!

!ai loo+ at Appalac'ian Coat!.%!tic# )o%&la! 3for t'# co%rt

$. If it i! pric# fiin&* t'#n p#r !# in,ali. P%rpo!# of rai!in& pric# an -'#r# t'#r# i! prooft'at it contri$%t# to t'# !ta$ility of t'# pric# i! #no%&' to ,iolat# > ?.

c1 This case marks a change in the law: under § 1, you don’t have to show anyovert act to find conspiracy if there is a purpose OR effect of raising, depressing,fixing, or staili!ing the price – agreement )ith intent or effect of affecting therice is illegal e2en if didn3t engage in o2ert act1

. ootnot# K/ c'an&#! la-i. if con!pirin& to commit crim#* &%ilty of con!piracy #,#n if NOT m##t yo%r

p%rpo!#ii. if yo% con!pir# to #ff#ct pric#!* &%ilty of >? ,iolation #,#n if not commit o,#rt

act* an #,#n if not 'a,# any m#an! to carry it o%tiii. In t'i! ca!#/ co! not 'a,# m#an! to carry it o%t* $%t !till p#r !# in,ali

5. /ashion &ri"inators +ild of A-erica v. /TC, 1$>1, "ro+p oycott a. MMMalt'o%&' ca!# i! #ci# %n#r t'# TC Act* t'# int#rpr#tation of> < i! parall#l to > ?

of t'# S'#rman Act$. t'# G%il con!i!t# of fa!'ion in%!try clot'in& ma+#r!* %p!#t $y +noc+off!. orm#

OGA an !ai t'at t'# r#tail#r! 'a to $oycott t'#!# 8!tyl# pirat#!9 an t'#y -o%lntallo- t'#m to !#ll t'#ir !t%ff if t'#y carri# t'# clot'#! of t'# !tyl# pirat#!.

i. If it 'a $##n only a !in&l# firm* li+# Cal,in Fl#in* !ayin& t'i!* t'#n it! not acon!piracy t'# Col&at# r%l#/ any !in&l# firm #ciin& not to o $%!in#!! -it'anot'#r firm i!nt ,iolatin& > ?* alt'o%&' it mi&'t $# ,iolatin& > 2.

c. TC !ai t'at t'i! ,iolat# t'# S'#rman Act 3$y analo&y $7c it r#!trict# comp#tition $ylimitin& t'# n%m$#r of !#ll#r! yo% co%l #al -it' if yo% $o%&'t from OGA* an p#opl#-'o -ant# to !#ll t'# c'#ap !t%ff -#r# limit# in -'om t'#y co%l #al -it'" al!o* lo!!of fr##om $7c !'op o-n#r! 'a to !'o- t'#ir $oo+! an t'#r# -#r# !#cr#t !'opp#r! cr#at# a pri,at# &o,t.

C. Radiant +rners 9nc, v. 4eoples as 8 (i"ht Coe Co, 1$61, "ro+p oycott ;note case<a. P pro%c# a $%rn#r t'at fail# t'# Am#rican Ga! A!!ociation t#!t* !o no AGA

appro,al. Utility m#m$#r! of AGS -o%l not !#ll &a! for %!# in %nappro,# $%rn#r*an con!%m#r! -#r# not int#r#!t# in $%yin& a $%rn#r for -'ic' t'#y co%l not $%y

9



&a!. P a!!#rt &ro%p $oycott. S.C. a&r##! a con!piratorial r#f%!al to !#ll &a! for$%rn#r! lac+in& AGA !#al of appro,al fall! -it'in on# of t'# cla!!#! of r#!traint! t'atar# p#r !# ill#&al.

). Ti-en Roller earin" v. U, 1$%1 ;not read for class< ? -aret divisiona. > ? c'ar&# t'at 5riti!' Tim+#n* r#nc' Tim+#n* an US Tim+#n i,i# t'# mar+#t for

Tim+#n roll#r $#arin&! Q fi# t'# pric# at -'ic' #ac' -o%l !#ll.

$. )#f#n!# tri#! to a!!#rt t'at it! a !in&l# #nt#rpri!# i,iin& t'# -orl an ancillary toi!tri$%tion an #!!#ntial to !#t %p in many co%ntri#!. Co%rt o#!nt $%y it* an !ay!ancillary r#!traint ar&%m#nt! ont c%t it in a p#r !# r%l#* an t'# fact t'at t'#!# -#r# allpart of t'# !am# corporat# or&anization o#!nt ta+# t'#m o%t of S'#rman Actco,#ra&# $7c #,#n m#m$#r! of t'# !am# family can con!pir#.

E. U.. v. Topco, 1$7= a. Topco i! a coop#rati,# $%yin& or&anization $o%&'t cann# &oo! an ot'#r pro%ct!

from a ,ari#ty of pro%c#r!* an $o%&'t in $%l+ !o t'at it co%l &#t ma i!co%nt* anal!o #,#lop# pri,at# la$#l of &oo!. T'#r# -#r# t#rritorial limit! !#t %p !o t'at t'#!%p#rmar+#t! -o%lnt comp#t# a&ain!t #ac' ot'#r* an $oar m%!t appro,# n#-m#m$#r!'ip. T'i! -a! a ca!# of mar+#t i,i!ion an &ro%p $oycott* $ot' of -'ic' -#r#

p#r !# ill#&al. Ar&%m#nt t'at t'i! !'o%l $# allo-# $7c it allo-! t'# !mall#r compani#!to comp#t#.

$. 6a1ority fin! t'at t'i! i! a 'orizontal r#!traint an t'#r#for# a p#r !# ,iolation of > ?. ift'# #ci!ion i! &oin& to $# ma# to !acrific# comp#tition in on# portion of t'# #conomyfor &r#at#r comp#tition in anot'#r portion* Con&r#!! 'a! to ma+# it. T'i! i! not a -#llHr#&ar# #ci!ion

c. 5%r&#r 3i!!#nt/ t'i! i! t'# ,i#- t'at 'a! !%r,i,#. Prior #ci!ion! ont 1%!tify t'i!r#!%lt. Goal !o%&'t -a! t'# a$ility to comp#t#" &ro%p 'a! la-f%l p%rpo!# an t'i! i!f%lly r#a!ona$l#.

Monoolization

. U.. v. Alcoa, 1$>%, = nd Cir 3aff in Am#rican To$accoa. Alcoa 'a pat#nt! n#c#!!ary to pro%c# al%min%m* an $#for# t'#y #pir# #nt#r#

into cart#l a&r##m#nt! -it' for#i&n pro%c#r! an contract# -it' #l#ctric company to!%pply only to ).

$. Co%rt/ t'i! i! p#r !# ill#&al. Alcoa -a!nt a pa!!i,# r#c#i,#r of it! monopoly no on##l!# -a! #nt#rin& t'# in%!try $7c Alcoa -a! a$l# to m##t #man $7c it !tim%lat##man only aft#r it co%l m##t it 3!om# illo&ical r#a!onin&. It al!o c'ar&# lo- pric#!an fo%n ot'#r %!#! for al%min%m. an i! li,in& in t'# -orl of t'# p#r !# r%l# t'#only -ay t'at yo% ar# not ill#&al if yo% ar# $i& i! if t'# monopoly i! t'r%!t on yo% $7c yo%ar# t'# only pro%c#r.

c. P%rpo!#! of r#ain& t'i! ca!#/i. Ill%!trat# analo&y to t'# p#r !# r%l# in > 2 not formally a p#r !# r%l# a&ain!t

$i&n#!!* $%t a! a practical matt#r !%c' a clo!# approimation mi&'t a! -#ll $#p#r !#

ii. )#finin& mar+#t! an mar+#t !'ar#! '#r# t'# &#o&rap'ic mar+#t i! t'#%nit# !tat#!" #plor# 4 po!!i$iliti#! for t'# r#l#,ant pro%ct mar+#t

?. ,ir&in al%min%m/ pro%ct t'at -a! pro%c# from t'# r#mo,al ofimp%riti#! fir!t tim# it i! on# an p%r#!t form

2. fini!'# pro%ct!/ !t%ff li+# pot! an pan!=. !#conary/ r#cycl# al%min%m4. for#i&n

10



iii. i!trict co%rt #fin#! t'# pro%ct mar+#t a! 3?73?J3=J34 ; ==Di,. an #fin#! it a! ?J2J=J7?J2J=J4 ; B0D

. o- o -# #t#rmin# if t'# )i!trict %&# or an i! corr#cti. )#p#n! on -'#t'#r t'# pro%ct! ar# int#rc'an&#a$l# -'at o p#opl# ,i#-

a! an acc#pta$l# alt#rnati,#7!%$!tit%t#. If p#opl# $#li#,# t'at t'in&! ar#acc#pta$l# !%$!tit%t#!* t'#n t'#y ar# in t'# !am# mar+#t.

#. 6or&an !ay! t'at t'# ri&'t form%la !'o%l $# 3?J273?J2J=J4 ; K4Df1 This test of mkt o)er -E4 b5c sho)s attention aid to structural detail as ste

in 67 analysis8 this case foundation for modern monoolization la)99&. T'i! ca!# al!o #p#n! on !tr%ct%ral analy!i!* not n#c#!!arily con#mnation of

8$i&n#!!9

i. U.. v. riffith, 1$># '. )#f#nant! op#rat# mo,i# t'#at#r!" $oo+# film! an #man# #cl%!i,# ri&'t! to

$# t'# fir!t to !o- t'# film!. )i!t ct fo%n t'at comp#titor! 'a iffic%lty &#ttin& ri&'t! to#!ira$l# film!* $%t t'# #f#nant! 'ant tri# to p%t comp#titor! o%t of $%!in#!!.

i. Sp#cific int#nt to monopoliz# n## not $# !'o-n" int#nt can $# inf#rr# from cont#tan $#'a,ior. :'#n mar+#t ominanc# o$tain# $y > ? ,iolation* #!!#ntially 'a,# p#r

!# ,iolat# > 2 3!am# propo!ition a! i!!#nt in US Coal. 1. 6onopoly po-#r* #,#n if la-f%lly o$tain#* ,iolat#! > 2 if yo% can !'o- a p%rpo!# to

pr#!#r,# it or mi!%!# it in t'# f%t%r# ont n## to -ait for $a act!.

G. U.. v. United hoe Machinery Corp, 1$%3, )istrict Co+rt a. C'ar&# t'at Unit# 'a $##n monopolizin& int#r!tat# tra# an comm#rc# in !'o#

mac'in#ry in%!try" !%pply o,#r <D of t'# c%rr#nt #man in t'# Am#rican !'o-mar+#t an 'a pat#nt! for mac'in#! t'at -#r# %!# to proc#!! !'o#!. 5y t'# tim# oft'i! ca!#* t'# pat#nt! -#r# #pir#* an t'#r# -#r# ot'#r mac'in#! an m#t'o!a,aila$l#. Unit# -o%l l#a!# #(%ipm#nt rat'#r t'an !#ll it* an t'# factor -o%l pay$a!# on t'# n%m$#r of !'o#! t'at -#r# ma#" t'i! r#%c# t'# #p#n!# of a!'o#ma+#r* $7c '# -o%l pay l#!! if '# 'a a $a y#ar. Al!o* Unit# i #cl%!i,#

r#pair!. ?0 y#ar l#a!#* an oft#n Unit# -o%l %pat# mac'in#!. a to %!# Unit#mac'in# to capacity $#for# yo% co%l $rin& in anot'#r" if not* pai a! if yo% 'a $##n%!in& t'# Unit# mac'in#.

$. Co%rt %ltimat#ly concl%#! t'at t'# l#a!# t#rm! -#r# t'# pro$l#m $7c of t'# l#n&t' ant'# r#(%ir#m#nt of f%ll capacity. Tri#! to !ay t'#r# i! pric# i!crimination '#r# $7cUnit# c'ar&# mor# for mac'in#! -#r# t'#y -#r# t'# only pro,i#r! an l#!! for t'#on#! -'#r# t'#r# -#r# ot'#r pro,i#!* $%t it i! %!in& t'# t#rm -ron&.

c. R#m#y/ cant $r#a+ %p Unit# into t'# miniHfirm! it onc# -a!* $7c it -a! on# firm aton# !it#. If it -#r# po!!i$l# for p#opl# to $%y t'# mac'in#! an &#t o%t of t'#tro%$l#!om# cla%!#!* it -o%l $# o+.

. S%pr#m# Co%rt affirm!* $%t lat#r or#r! t'# $r#a+%p of Unit# 6ac'in# $7c p#opl#contin%# to $%y an l#a!# t'# mac'in#!.

#. Co%rt 'a tal+# a$o%t = iff#r#nt approac'#! to #t#rminin& ill#&alityi. 6onopolization in ,iolation of > 2 if it 'a! ac(%ir# or maintain# a po-#r to

#cl%# ot'#r! a! a r#!%lt of %!in& an %nr#a!ona$l# 8r#!traint of tra#9 in,iolation of > ? of t'# S'#rman Act.

ii. iolation of > 2 if it 3a 'a! t'# po-#r to #cl%# comp#tition* an 3$ 'a!##rci!# it* or 'a! t'# p%rpo!# to ##rci!# it.

iii. O,#r-'#lmin& !'ar# of t'# mar+#t not !ol#ly %# to !%p#rior !+ill or #ffici#ncy

11



f. Not# Ca!#/ U.. v. rinnel Corp, 1$66 3not# ca!#i. Ca!# in,ol,# c'ar&# of monopolization $ro%&'t a&ain!t a national firm t'at

pro,i# prop#rty prot#ction !#r,ic# from c#ntral location! -it'in a city* anclaim# in!%ranc# company i!co%nt $y 'a,in& t'# alarm !y!t#m. Go,t -ant!t'# pro%ct mar+#t to $# #fin# a! 8c#ntral !tation prot#ction !#r,ic#9 t'at -a!8accr#it# $y in!%ranc# compani#!.9 )#f#nant! -ant# to incl%# ot'#r

prot#ction !#r,ic#!* !%c' a! &%ar o&!* &%ar! on t'# prop#rty* an #,#n!prin+l#r !y!t#m! a! fir# prot#ction. Co%rt !i#! -it' &o,t" !'o-! t'at t'# Co%rti! -illin& to #fin# mar+#t! 'o-#,#r -ill con#mn t'# practic#.

. (orain o+rnal and &tter Tail Casesa. alt'o%&' a !in&l# firm! r#f%!al to #al cant $# a > ? ,iolation* it can $# a > 2.$. Lorain o%rnal/ at l#a!t %n#r !om# circ%m!tanc#!* #ntry can $# !o iffic%lt t'at on#

firm 'a! a monopoly po!ition an r#f%!al to #al can $# a > 2 ,iolationc. Not# ca!#/ @aler 4rocess E+ip-ent v. /ood Machinery 8 Che-ical Corp, 1$6%

i. Pat#nt 'ol#r can $# ##m# to $# ,iolatin& > 2 if ) can $# !'o-n to 'a,#o$tain# t'# pat#nt $y fra%.

I. Utah 4ie v. Continental ain" Co, 1$67 ? predatory pricin" a. P#r !# approac' to > 2" alt'o%&' ca!# i! #ci# %n#r > 2 of Ro$in!on Pat#nt act

3Clayton* t'i! can $# !##n a! ca!# of pr#atory pricin& an t'#r#for# > 2 S'#rman.$. P i! a froz#n pi# company i! Salt La+# city 'a a$o%t 27= of t'# mar+#t. = compani#!

-#r# !#llin& #l!#-'#r#* #nt#r Salt La+# City $y lo-#rin& pric# $#lo- Uta' Pi#. Un#rRo$in!on Pat#nt* pro$l#m i! t'#y -#r# !#llin& pi#! $#lo- -'at t'#y -#r# !#llin& t'#mfor in ot'#r part! of t'# co%ntry. I!!%# of -'#t'#r %n#r Ro$in!on Pat#nt comp#tition-a! in1%r# or t#n#ncy to cr#at# a monopoly. Local 1%ry fin! t'at it in1%r#!comp#tition" Co%rt of App#al! r#,#r!#!* !ayin& no in1%ry an comp#tition incr#a!# $7cof lo-#r pric#!.

c. S.C. !ai comp#tition #ro# $7c ot'#r! may not $# a$l# to affor to !tay in t'# mar+#t.Int#nt to ominat# $y P#t Pi#!* -'ic' amittin& to tar&#tin& %p* an if yo% r#am ofta+in& o,#r t'# mar+#t* int#nt i! #no%&' to ,iolat# > 2 of S'#rman.

!ertical *rrangements Percei2ed as E:clusionaryEcl%!i,# #alin& an tyin& arran&#m#nt!

. 9nternational alt v. United tates. 1$>7B tyin" a. 6a# t-o mac'in#! t'at in1#ct# !alt into pro%ct!" on# mac'in# r#(%ir# yo% to $%y

all yo%r !alt from Intl" t'# ot'#r mac'in# yo% co%l $%y t'# !am# (%ality !alt from!om#on# #l!#* $%t Intl 'a c'anc# to matc' t'# pric#. Intl Salt tri#! to #f#n t'at t'#y'a,# an int#r#!t in t'# mac'in#! $#in& r#t%rn# in &oo conition an ont -ant itcorro# $y lo- (%ality !alt* an can $%y #l!#-'#r# if it! t'# !am# (%ality an Intl-ont matc' t'# pric#.

$. > ? ,iolation/ Co%rt fin! t'at t'#r# i! a s+stantial l#!!#nin& of comp#tition in t'# -orlof !alt $7c ot'#r !#ll#r! -o%l 'a,# to $#at Intl! pric#* not !imply matc' it. Co%rt !ay! it

-o%l $# o+ to !p#cify t'# (%ality. Tyin& i! p#r !# ill#&al 3!ocony" pric# fiin& i! ill#&alp#r !#. Al!o ,iolat#! > = of Clayton/ !%$!tantial #cr#a!# in comp#tition or t#n#ncy tomonopoliz# Co%rt loo+! at t'# amo%nt of !ol* not mar+#t !'ar#.

c. Intl pro$a$ly -ant# to o t'i! $7c it !#r,# a! a monitorin& #,ic# 3!## 'o- ,al%a$l# iti! $y 'o- m%c' it i! $#in& %!#* prot#ct &oo -ill* an ma+# mor# mon#y 3an t'#yco%l pric# i!criminat# $a!# on 'o- m%c' p#opl# #man it.

. T'# co%rt n#,#r !ay! t'at !om#t'in& !ol in a pac+a&# i! p#r !# ill#&al.

12





iii. for t'i! typ# franc'i!# i!/ Not -'#t'#r all#&#ly ti# pro%ct! a!!ociat# inp%$lic min -7T6* $%t -'#t'#r t'#y ar# int#&ral compon#nt! of t'# $%!in#!!m#t'o $#in& franc'i!#

i,. A 85%!in#!! 6#t'o ranc'i!#9N. orthern 4acific Rail*ay v. U, 1$%# !till t'# r%l# for tyin& ca!#!

a. Lan &rant railroa !ol $loc+! of lan* an -'o#,#r $o%&'t7l#a!# t'# lan 'a to

a&r## t'at t'#y -o%l !'ip anyt'in& ma# on t'# lan on nort'#rn pacific pro,i# t'atit! rat#! 3an in !om# ca!#! it! !#r,ic# -#r# #(%al to t'o!# of comp#tin& carri#r!.

5lac+ 3for t'# co%rt/$. tyin& arran&#m#nt! ar# p#r !# ill#&al. c. T#!t to #t#rmin# if it! a tyin& arran&#m#nt 3-# !till %!# t'i! toay

i. T'#r# i! tyin& -'#n#,#r a party 'a! 3? !%ffici#nt #conomic po-#r -it' r#!p#ctto t'# tyin& pro%ct to 32 appr#cia$ly r#!train fr## comp#tition in t'# mar+#t fort'# ti# pro%ct AN) 3= a 8not in!%$!tantial9 amo%nt of int#r!tat# comm#rc# i!aff#ct#.

d. U!#! a flo%r7!%&ar #ampl# to !'o- 'o- !om#t'in& mi&'t not $# ti# i.#. if on#!#ll#r of flo%r r#(%ir#! t'at yo% $%y !%&ar in or#r to &#t t'# flo%r* it -ont $# a tyin&arran&#m#nt $7c t'#r# i! a lac+ of !%ffici#nt mar+#t po-#r can %!# &o #l!#-'#r#.

#. Co%rt fin! t'at t'# railroa 'a !%ffici#nt mar+#t po-#r -'ic' i! a !tran&# r#!%lt $7ct'#r# -a! pl#nty of lan a,aila$l#* an t'# railroa o-n# only a !mall p#rc#nta&#.T'# fact t'at p#opl# !i&n# t'#!# a&r##m#nt! -a! fo%n proof of t'i! mar+#t po-#r.5%t in r#ality* p#opl# -o%l pro$a$ly !'ip on Nort'#rn any-ay.

O. United tates v. (oe*s, 1$6= a. ilm i!tri$%tor! !ol to t, !tation!* $%t -o%l only !#ll t'# pop%lar mo,i#! if t'#

%n#!ira$l#! -#r# $o%&'t a! -#ll.$. Co%rt fin! t'at t'i! i! ill#&al an i! a tyin& arran&#m#nt ,iolation of > ?. T'#r# i! an

ini,i%al #man for t'# mo,i#! an p#opl# !'o%l $# a$l# to $%y t'#m ini,i%ally.R#affirm! t'# !tanar i! t'at !#ll#r m%!t 'a,# !%ffici#nt #conomic po-#r -it' r#!p#ctto t'# tyin& pro%ct to appr#cia$ly r#!train fr## comp#tition in t'# mar+#t for t'# ti#pro%ct 3from N. Pacific. 5y r#a!on of copyri&'t* #f#nant! 'a a monopoly o,#r t'#

&oo mo,i#* an %!# po-#r to &#t p#opl# to $%y t'# ot'#r!.c. 6or&an point! o%t t'at if yo% 'a to !#ll t'#m ini,i%ally* -o%l 'a,# to !#ll #ac' for

t'# lo-#!t pric# an -o%l ma+# l#!! mon#y ar&%#! t'at not #,#ryon# ,al%#! #,#ryit#m in a pac+a&# t'# !am# 3i.#. lif#!a,#r!.

P. /ortner Enterprises v. U teel, 1$6$a. U.S. St##l off#r# $%il#r! a r#ally &oo #al if t'#y $o%&'t !t##l 'o%!#!* &ot a loan

on t'# pric# of t'# 'o%!#* t'# lan* an r#ally &oo t#rm! !o t'at it -a! a noHlo!#!it%ation for t'# $%il#r!. ornt#r -ant# to &o to US St##l cr#it company an &#t t'#!am# t#rm! -7o 'a,in& to $%il !t##l 'o%!#!. ortn#r !%#! on t'# &ro%n! t'at t'#main pro%ct -a! mon#y t'at US loan#* an ti#Hin t'# !t##l 'o%!#!. T'# only -ayt'i! ma+#! !#n!# i! to ar&%# t'at US St##l 'a a monopoly on mon#y.

$. Co%rt fin! t'at t'i! ca!# in,ol,#! 8tyin& arran&#m#nt of t'# traitional +in9 an

r#,#r!#! S in fa,or of US St##l.c. )i!!#nt/ Any form of financin& i! r#ally 1%!t a m#t'o to i!co%nt pric#* -ron& to ma+#

t'i! p#r !# ill#&al" a form of comp#tition t'at !'o%l $# #nco%ra&#V" almo!t all pro%ct!al#! 'a,# !om# !i# f#at%r#! 3i.#. fr## #li,#ry

. US St##l co%l ar&%#* NOT 2 pro%ct!* 1%!t !t##l 'om#! -7&r#at financin&* an t'#ynot 'a,# !%ffici#nt #conomic po-#r -7tyin& pro%ct* loan!

#. NOTES/ a 1%ry an lat#r a 1%&# in a $#nc' trial fo%n for ortn#r" Ct of App#al!affirm#. :'#n it cam# to S%pr#m# Co%rt* r#,#r!#. If t'# #,i#nc# m#r#ly !'o-! t'atcr#it t#rm! ar# %ni(%# $#ca%!# t'# !#ll#r i! -illin& to acc#pt a l#!!#r profit or inc%r

14



&r#at#r ri!+! t'an it! comp#titor!* t'at +in of %ni(%#n#!! -ill not &i,# ri!# to anyinf#r#nc# of #conomic po-#r in t'# cr#it mar+#t. T'# %n%!%al cr#it $ar&ain off#r# toortn#r pro,#! not'in& mor# t'an a -illin&n#!! to pro,i# c'#ap financin& in or#r to!#ll #p#n!i,# 'o%!#!.9

ORIWONTAL ERTICAL

Pric# fiin& r#!al# pric# maint#nanc#6ar+#t i,i!ion t#rritorial allocationGro%p $oycott &ro%p $oycott 3not many

)ealin" *ith )ealers

Resale rice maintenance

. !lors 9nc v. road*ay2Iale tores, 1$%$ ;not read for class<a. )#man ma# t'at non# of t'# applianc# !#ll#r! !'o%l !#ll to i!co%nt !tor#!. Co%rt

!ay! t'at it! a ,#rtical &ro%p $oycott an p#r !# ill#&alR. U.. v. 4are, )avis 8 Co, 1$60

a. Par+# )a,i! 'a r#!al# pric# maint#nanc# policy in it! -'ol#!al#r! an r#tail#r!catalo&. Alt'o%&' )r. 6il#! !ai t'at yo% cant !#t pric#!* $%t '#r# t'#y tri# to ar&%#t'at t'i! -a! mor# li+# Col&at# t'#y -#r# only oin& $%!in#!! -it' t'o!# t'#y -ant#to. Tol -'ol#!al#r! t'at -o%lnt !#ll to t'o!# -'o int o$!#r,# t'# pric# policy or!ol to r#tail#r! -'o int.

$. Co%rt !tr%c+ o-n t'i! practic# '#r# Par+# )a,i! too+ !t#p! to in!%r# complianc#.Co%rt !ai t'at Col&at# -a! n#,#r m#ant to $# a lar&# !cal# ##mption from t'# )r.6il#! r%l#! a&ain!t r#!al# pric# maint#nanc#. Resale rice maintenance asracticed in this case is er se illegal1 -'#n t'# man%fact%r#r! action! &o $#yonm#r# anno%nc#m#nt of a policy an t'# !impl# r#f%!al to #al* an '# #mploy! ot'#rm#an! -'ic' #ff#ct a'#r#nc# to 'i! r#!al# pric#!* t'#n '# 'a! p%t to&#t'#r acom$ination in ,iolation of t'# S'#rman Act. T'# man%fact%r#r! %!# i!tri$%tor! to

impl#m#nt t'i! policyH it -a! no %nilat#ral li+# in Col&at#.i. Col&at# octrin# allo-! man%fact%r#r to anno%nc# pric# maint#nanc# policy

an #nforc# it $y r#f%!in& to #al -7c%!tom#r! -'o ont follo- policy.O:EER* t'#r# i! %nla-f%l com$ination -'#r# a man%fact%r#r 8#nt#r! intoa&r##m#nt! #pr#!!# or impli# -it' all c%!tom#r! -'ic' %n#rta+# to $int'#m to o$!#r,# fi# r#!al# pric#!* EXCEE)E) Col&at# octrin#

c. Critici!m/ Co%rt fail! to r#aliz# t'at r#tail#r! -#r# not only carryin& Par+# )a,i!pro%ct!* an t'#r# a$ility to !#t pric# -#r# %ltimat#ly controll# $y comp#tition. T'i!-o%l c'an&# if it t%rn! o%t t'at p#opl# ,i#- Par+# )a,i! pro%ct! a! %ni(%#.

. i-pson v. Union &il 3not r#a for cla!!i. Or#r# to !#ll for =0 c#nt! a &allon" in!t#a !ol for 2 c#nt!. Union Oil

#f#n# on t'# &ro%n t'at it con!i&n# t'# &a! to Simp!on rat'#r t'an

o%tri&'t !#llin& it. )o%&la! !ay! t'at con!i&nm#nt arran&#m#nt! ar# p#rmi!!i$l#if yo% o !om#t'in& li+# &o to a local anti(%# !tor# an !#ll on# r%& at a tim# $%t if yo% ar# a #al#r !#ttin& %p a con!i&nm#nt arran&#m#nt for all yo%rpro%ct!* t'at i! ill#&al. GE i! i!tin&%i!'# $7c t'#r# -#r# pat#nt! in,ol,#.#r# it i! %nfair to #ny Simp!on t'# ri&'t to !#ll at a lo-#r pric#.

15



Territorial *llocation

S. @hite Motor v. U, 1$63a. R#!triction! impo!# on -'at t#rritory t'# #al#r! can !#ll car! -#r#nt allo-# to

!#ll o%t!i# yo%r allott# t#rritory or to p#opl# o%t!i# of yo%r t#rritory. A !#conr#!triction -a! t'at yo% co%lnt !#ll to f##ral or !tat# &o,#rnm#nt!.

$. Co%rt/ 'orizontal arran&#m#nt! to i,i# t#rritory ar# $ann#* an co%rt !##! if it!'o%l #t#n t'i! to ,#rtical! arran&#m#nt!. R#man! t'i! for trial %n#r a r%l# ofr#a!on 3$%t if t'i! -a! 'orizontal it -o%l 'a,# $##n p#r !#

c. )i!!#nt/ t'i! i! 8on# of t'# mo!t $raz#n ,iolation!9 an it !trai&'t o%t mar+#t i,i!ion !'o%l $# p#r !# ill#&al 3-'ic' i! con!i!t#nt -it' t'# p#r !# r%l# p#rio.

. Co%rt i not apply a p#r !# r%l# '#r# $7c it f#lt t'at it int +no- #no%&' a$o%t t'#impact of t'#!# r#!traint! to !## if t'#r# i! !%c' an #ff#ct on comp#tition a! to 'a,# nor###min& ,irt%#.

#. Not# ca!# / U.. v. M * ?BKKi. )#al#r! coop#ratin& -it' 8i!co%nt 'o%!#! an 8r#f#rral !#r,ic#!.9 T'#

i!co%nt#r! t#n# to $%y from -'#r# t'#y !ol. )#al#r! -#r#nt 'appy a$o%tt'i!* an G6 tol #al#r! t'at t'#y -#r# ,iolatin& location cla%!# $y !#llin& to

i!co%nt 'o%!#!. Co%rt fo%n t'i! -a! Flor! an Par+# )a,i!. 5#ca%!# on# oft'# prim# p%rpo!#! of t'# practic#! -a! to +##p t'# pric#! %p* t'i! a&r##m#nt-a! p#r !# ill#&al.

f. Not# Ca!#/ U.S. v. Schwinn – overruled by Continental v. GTE Sylvania

i. Sc'-inn -a! family o-n# $%!in#!! an 'a onc# $##n Am#rica! lar&#!t!#ll#r of $i+#!. Sol $i+#! in t'r## -ay!/ 3? traitional -'ol#!al#r an r#tail#r!-'o in t%rn !ol t'#m to t'# p%$lic" 32 !ol t'#m %n#r con!i&nm#nt or a&#ncya&r##m#nt! -it' i!tri$%tor!" 3= 8Sc'-inn Plan9 %n#r -'ic' c%!tom#r! plac#or#r! t'ro%&' r#tail #al#r! to -'om t'# $i+#! -#r# !'ipp# $y Sc'-inn for#li,#ry to i#ntifi# p%rc'a!#r!. Sc'-inn !#t %p t#rritori#!* an tri# to 1%!tifyt'# t#rritori#! $y !ayin& t'at it maintain# ima&# an (%ality.

ii. Co%rt fo%n t'at t'# t#rritorial limit! -#r# r#a!ona$l#.

T. Alrecht v. Ierald Co, 1$6# ? overr+led y tate &il Co. v. !hana. S%it for ,iolation of > ? ) p%$li!'# mornin& pap#r an P -a! on# of t'# p#opl# -'o

'a a ro%t#. P c'ar&# a$o,# t'# maim%m pric#* an t'# pap#r -a!nt 'appy an tolc%!tom#r! t'at it -o%l off#r t'#m a lo-#r pric# if t'#y !-itc'# to t'#ir #li,#ry. Only2007?200 !-itc'#. Sinc# t'# pap#r int -ant to act%ally #li,#r* it &a,# t'# ro%t# toanot'#r carri#r.

$. Co%rt/ if t'#r# -a! a com$ination in Par+# )a,i!* t'#n t'#r# i! on# '#r#. ir!t pro$l#mfor Al$r#c't -a! -'#t'#r t'#r# -a! a con!piracy at all i t'# pap#r act %nilat#rally$#ca%!# $7c t'#y int li+# 'im T'# co%rt fo%n an a&r##m#nt $#t-##n t'#n#-!pap#r an t'# n#- i!tri$%tor a con!piracy to !#ll at a pric# promi!#. T'#com$ination form# $y t'# #f#nant to forc# p#tition#r to maintain a !p#cifi# pric#for t'# r#!al# of n#-!pap#r -'ic' '# 'a p%rc'a!# from #f#nant con!tit%t#*

-it'o%t mor#* an ill#&al r#!traint of tra# %n#r > ?. In &#n#ral* #cl%!i,# t#rritory i! o+for n#-!pap#r $7c it i! t'# only #ffici#nt -ay to #li,#r t'#m.

c. )i!!#nt 3)o%&la!/ T'i! i! a r%l# of r#a!on ca!# !t#mmin& from tandard &il .. )i!!#nt 3arlan/ 1%!tification for p#r !# r%l# in t'# ca!# of minim%m! 'a! not $##n

!'o-n to #i!t in t'# ca!# of maim%m!. )#f#nant! con%ct -a! in f%rt'#ranc# of*not contrary to* t'# p%rpo!#! of t'# antitr%!t la-!.

Price =iscrimination, The Robinson"Patman *ctH T'i! i! >2 of Clayton Act a! am#n# in ?B=K $y Ro$in!onHPatman Act

16



H Sam# !tat%t# !a- in Uta' Pi#H >23a ; ill#&al to pric# i!criminat# amon& p%rc'a!#r! of commoiti#! of t'# !am# &ra# an

(%ality -'#r# t'# #ff#ct may $# to !%$!tantially l#!!#n comp or t#n to cr#at# a monopoly orin1%r# comp

H >23$ ; $%r#n of r#$%ttin& a prima faci# ca!# i! on ) $y !'o-in& t'at 'i! lo-#r pric# -a!ma# in &oo fait' to m##t t'# #(%ally lo- pric# of a comp#titor

H >23f ; for$i! +no-in&ly r#c#i,in& a i!crimination

Monooly

U. G#n#ral Point!/a. Typ#!/

i. 'orizontal/ amon& comp#titor! at t'# !am# l#,#l of i!tri$%tionii. ,#rtical/ amon& firm! in iff#r#nt l#,#l! of t'# i!tri$%tion c'ainiii. Con&lom#rat#/ t-o firm! -'ic' ar# not comp#titor! nor 'a,# $%!in#!! #alin&!

com$in# an t'# ar&%m#nt i! t'at t'#r# i!nt any !%$!tantial l#!!#nin& ofcomp#tition

$. > of Clayton/ !o%&'t to ma+# mor# c#rtain t'# a$ility to c'all#n&# !%c' con!oliation!

$#for# t'#y -#r# a fair accompli.c. U.. v. Col+-ia teel * ?B4

i. T#!t# -'#t'#r t'# !tat%tory lan&%a&# !'o%l $# r#a al!o to pro'i$itf%nctionally !imilar $%t formally iff#r#nt +in! of con!oliation!. US. St##l -a!lar&#!t roll# !t##l pro%c#r! in co%ntry" Col%m$ia St##l -a! -'olly o-n#!%$!iiary an lar&#!t roll# !t##l pro%c#r in t'# :#!t#rn U.S. Col%m$ia anUS !t##l 'a contract# to $%y t'# a!!#t! of Con!oliat#. Go,t oppo!# !al#of con!oliat# to U.S. St##l $7c 3a U.S. St##l -o%l $# a$l# to fa$ricat# mor#of it! o-n !t##l an not %!# ot'#r fa$ricator!* an 3$ comp#tition for t'o!#fa$ricat# pro%ct! in -'ic' U.S. St##l an Con!oliat# comp#t# -o%l $##liminat#.

ii. S%pr#m# Co%rt !a- t'i! tran!action a! !imply allo-in& a !t##l pro%c#r to fin

a -ay to fa$ricat# pro%ct! in a n#- t#rritory. #rtical int#&ration cant $#allo-# to $# '#l ,iolati,# of t'# S'#rman Act. Clayton Act int apply $7c t'i!-a! an a!!#t ac(%i!ition rat'#r t'an a !toc+ p%rc'a!#. No ,iolation of > $7c3? U.S. St##l 'a ac(%ir# a!!#t! of Con!oliat# -'ic' i! not r#ac'# $y > "an 32 ,#rtical ac(%i!ition not r#ac'# $y > .

. C#ll#rHF#fa%,#r am#nm#nt! to > / $ro%&'t a$o%t a! a -ay to corr#ct t'# > #fici#nci#! ro*n hoe i! t'# fir!t ca!# #ci# %n#r t'# n#- >

. ro*n hoes Co v. U, 1$6= a. S%it initiat# $y Go,t for in1%nction to pr#,#nt m#r&#r $#t-##n Finny an 5ro-n S'o#

Company $7c it -o%l ,iolat# > of Clayton. 5ro-n -a! =r lar&#!t !'o# pro%c#r"Finny -a! family ori#nt# !'o# !tor#. 5ot' ma+# an !ol !'o#!* $%t can analyz# t'#

ca!# a! 5ro-n a! pro%c#r an Finny a! !#ll#r $7c t'at i! 'o- t'#y -#r# +no-n. b. T'r## iff#r#nt pro%ct mar+#t! '#r#/ m#n!* -om#n!* an c'ilr#n! !'o#!. O%t#r

$o%nari#! of a pro%ct mar+#t ar# #t#rmin# $y t'# r#a!ona$l# int#rc'an&#a$ility of%!# or t'# cro!!H#la!ticity of #man $#t-##n t'# pro%ct it!#lf an !%$!tit%t#! for it.G#o&rap'ic mar+#t -a! #fin# a! m#tropolitan ar#a! lar&#r t'an ?0*000 p#opl# Cto#!nt !ay t'# #ntir# US of t'# mar+#t $7c t'#n 5ro-n -o%l 'a,# a !mall#r mar+#t!'ar#" al!o* c%!tom#r! -ont tra,#l for to &#t !'o#!.

:arr#n 3for t'# co%rt

17



c. in! t'# m#r&#r to $# in,ali. Aopt! t'# )i!t Ct! finin&! t'at t'# !'o# in%!try i!$#in& !%$1#ct# to a c%m%lati,# !#ri#! of ,#rtical m#r&#r!* -'ic'* if l#ft %nc'#c+#* -ill$# li+#ly to 8!%$!tantially l#!!#n comp#tition.9 6#r&#r may t#n to l#!!#n comp#tition!%$!tantially in t'# r#trial !al# of m#n!* -om#n!* an c'ilr#n! !'o#! in t'#o,#r-'#lmin& ma1ority of t'o!# citi#! an t'# #n,ironm#nt! in -'ic' 5ro-n an Finny!#ll t'ro%&' o-n# or controll# o%tl#t!.

. Co%rt loo+! at -'y Con&r#!! aopt# t'# am#nm#nt! to > -ant# to promot#comp#tition an pr#!#r,# t'# !mall $%!in#!!. Co%rt fin! t'at Con&r#!! r#co&niz#t'at con!oliation +in of cr##p! %p on yo% an t'#r# can $# an on&oin& tr#n i#at'at it -a! appropriat# to int#r,#n# on t'# $a!i! of pro$a$iliti#! an loo+ at t'# cont#tof t'# in%!try ont n## to pro,# any ir#ct or immin#nt impact. if there isnegati2e effects in any line of commerce in any section of the country8 you ha2ea basis for striking the merger

#. If 5ro-n an Finny -ant to &#t $i&&#r* t'# pr#f#rr# m#t'o i! int#rnal &ro-t'. Co%rt-o%l $# -illin& to tol#rat# m#r&#r! of tiny $%!in#!!#! to l#t t'#m &#t to a l#,#l -'#r#t'#y -o%l $# a$l# to comp#t#* $%t not &oin& to l#t mar+#t l#a#r! com$in#. Al!o !#t!fort' t'# failin" co-pany i#a/ if t'# company i! &oin& o%t of $%!in#!!* no 'arm inallo-in& it to m#r&# $7c t'# comp#tition -o%l 'a,# $##n &on# any-ay.

f. #rtical a!p#ct! of t'# m#r&#r/i. Conc#rn t'at 5ro-n -o%l $# t'# only !%ppli#r to Finny an Finny -o%lnt !#ll

t'# ot'#r man%fact%r#r! !'o#!ii. Ar&%m#nt t'at if ot'#r! !## t'at t'i! i! a &oo t'in& t'#n t'#y mi&'t o it a!

-#ll* an #n %p -it' a $%y !y!t#m.

:. United tates v. 4hiladelphia atl an, 1$63a. Propo!# m#r&#r of t-o $an+! in t'# P'ili ar#a t'#!# -#r# t'# 2n an =r lar&#!t

$an+! in t'# ar#a.$. Pro%ct mar+#t i! #fin# a! anyt'in& t'at yo% can &#t a $an+ 3i.#. comm#rcial $an+in&

!#r,ic#!. G#o&rap'ic mar+#t/ t'# 4 co%ntry P'illi ar#a. 6o!t p#opl# ont !'oparo%n for $an+!* $%t t'#r# ar# !om# c%!tom#r! t'at !'op on a national $a!i! an

-o%l &o to N or anot'#r ar#a to &#t a $#tt#r #al on a loan. T'i! -a! important $7t'# P'illi $an+! -ant# to $# comp#tition -it' t'# N $an+! t'#r# -a! a limit on t'#total amo%nt of o%t!tanin& loan! a $an+ can 'a,# an n## a !%$!tantial a!!#t $a!#to ma+# loan! to t'# $i&&#!t compani#!.

c. T'# $an+in& a%t'oriti#! act%ally t'o%&'t t'at t'i! -a! a &oo i#a )O c'all#n&# it#!pit# t'i!.

d. Co%rt #!ta$li!'# an al-ost per se rule – says that a merger whih pr!dues a firm

!"tr!lli"g a" u"due pere"tage share i" the releva"t mar#et$ a"d results i" a sig"ifia"t

i"rease i" the !"e"trati!" !f firms i" that mar#et$ is s! i"here"tly li#ely t! lesse" !mpetiti!"

substa"tially that it must be e"%!i"ed in the absence of evidence clearly showing that the merger

is not likely to have anticompetitive effects.

i. Co%rt loo+! t'at a! a r#!%lt of t'i! m#r&#r t'# top 4 $an+! -o%l control D H

co%rt al!o loo+! at -'at t'# top t-o firm! -o%l 'a,# an -'at t'i! firm -o%l'a,#.

ii. E!!#ntially t'# co%rt i! cr#atin& a r#$%ta$l# pr#!%mption -'#n firm &#t! to =0DJ of t'# mar+#t t'at it i! anticomp#titi,# $%t it t%rn! o%t to $# almo!timpo!!i$l# to r#$%t.

#. )#f#n!#! off#r#/i. T'i! -a! t'# only -ay to r#ac' t'# !%$%r$! co%rt! r#!pon!# it to op#n a

n#- $ranc' 3$%t t'i! -o%l #n %p '%rtin& t'# !mall#r $an+!* an in t'# #n t'#con!%m#r an t'# &o,t #n %p payin&.

18



ii. Incr#a!# l#nin& limit! !o t'at t'#y co%l comp#t# -it' o%t of !tat# lar&# $an+! #!!#ntially -o%l #n %p incr#a!in& comp#tition in on# mar+#t -'il##cr#a!in& it in anot'#r. Co%rt! r#!pon!# i! t'at t'# !tat%t# o#!nt !ay yo%$alanc# if t'#r# i! a !%$!tantial l#!!#nin& of comp#tition t'# m#r&#r fail!.

f. Not# ca!# / US v. on!s Grocery& '!"(s was third largest gr!ery hai" i" )* area a"d

+h!ppi"g ,ag -!!d +t!res was sith$ but t!gether !"ly had 7.5/ !f mar#et. !urt d!es"(t

all!w merger – "!ted that b!th hai"s had r!ughly d!ubled i" sie i" the preedi"g 10 years$a"d auisiti!"s a"d mergers !f gr!eries were preedi"g s! rapidly i" the )* mar#et that theg!v(t !uld e"%!i" this merger !f small but suessful hai"s.

>oint !entures

X. U.. v. 4enn2&lin Che-ical Co-pany, 1$6>a. P#n!alt -a! locat# in Or#&on" Olin -a! in O'io lot! of tr##! in t'# SE an pap#r

pro%ction -a! mo,in& o-n t'#r#* an !oi%m c'lorat# i! a $l#ac'in& a&#nt %!# inpap#r pro%ction. Olin lic#n!# a pat#nt to P#n!alt" P#n!alt -o%l t'#n &i,# Olin t'#!t%ff to Olin to i!tri$%t#. Al!o 'a Am#rican Pota!' an oo+#r -'o -#r# locat# int'# SE. P#n!alt an Olin #ac' t'o%&' a$o%t #nt#rin& t'# in%!try ini,i%ally* $%t

#ci# not to o it* an a&r## to #nt#r to&#t'#r a! P#nnHOlin t'#y #nt#r# in a -ayt'at co%l !#ll for a common pric#.

$. Co%rt loo+! at t'i! a! > i!!%# rat'#r t'an > ? i!!%# !o it can %!# t'# !%$!tantiall#!!#nin& t#!t rat'#r t'an forc# t'#m to %!# p#r !# r%l#. Un#r > ? analy!i!* it i!i,iin& t'# mar+#t" %n#r > * it i! ,i#-# a! not r#%cin& comp#tition $7c t'#r# i! nol#!!#nin& of comp#tition from $#for# t'# ,#nt%r# !tart# an ar# $#tt#r off -it' on# r#alfirm rat'#r t'an t-o pot#ntial!.

c. )i!trict co%rt 'a !ai if P an O 'a #nt#r# t'# mar+#t* t'#r# -o%l $# a 4 firmmar+#t" no- it! r#%c# to = firm! an can !ay it! l#!!#nin& of comp#tition. S%pr#m#Co%rt !ay! t'at no- 'a,# t'r## firm!* an -o%l 'a,# t'# !am# r#!%lt if #it'#r P or O'ant #nt#r# a! in#p#n#nt* $%t if on# 'a #nt#r# rat'#r t'an 1oinin& in a 1oint,#nt%r#* t'# ot'#r -o%l 'a,# r#main# a potential #ntrant an -o%l 'a,# = act%al

an ? pot#ntial. Ar&%m#nt i! t'at 'a,in& pot#ntial comp#tition 'a! comp#titi,#!i&nificanc# to ca%!# t'# #i!tin& firm! to +##p !#r,ic# %p an pric#! lo- to i!co%ra&#pot#ntial in,#!tor from $#comin& an act%al on# t'# r#mo,al of potential i! !%ffici#nt to$# a !%$!tantial l#!!#nin& of comp#tition. R#man! to )i!t Ct to !## if t'#r# r#ally-o%l 'a,# $##n a pot#ntial.

. T#!t/ to !tri+# o-n m#r&#r %n#r pot#ntial comp t'#ory* m%!t $# !'o-in& t'at/i. R#a!ona$l# pro$ t'at ac(%irin& firm* $%t for t'i! m#r&#r* -o%l 'a,# #nt#r#

t'# m+t in t'# n#ar f%t%r#?. r#a! pro$ ; if ) 'a! capacity an inc#nti,# to #nt#r

ii. t'at t'# #ntry t'ro%&' ot'#r m#an! -o%l 'a,# r#!%lt# in a #conc#ntrat#m+t or procomp #ff#ct

iii. t'# m+t %n#r r#,i#- i! conc#ntrat#

. /TC v. 4rocter 8 a-le, 1$67 a. irm! ma# 'o%!#'ol pro%ct! Cloro -a! ma+in& li(%i $l#ac' an 'a ro%&'ly

'alf of t'# mar+#t. PQ G -ant# to ac(%ir# !toc+ of Cloro it -o%l $# anot'#r PQG$ran. PQG ar&%# t'i! -a! a pro%ct #t#n!ion m#r&#r it -a! not a comp#titor int'# $l#ac' in%!try. Notion t'at t'i! -a! a con&lom#rat# m#r&#r. R#l#,ant mar+#t -a!li(%i $l#ac'.

$. Co%rt n#,#r r#ally $o%&'t t'# ar&%m#nt t'at $7c a company i! lar&# an ac(%i!ition $y iti! ill#&al 'a,# to !'o- !%$!tantial l#!!#nin& of comp#tition. To o t'i!* can !'o-

19



i. Eliminat# pot#ntial comp#tition of ac(%irin& firm!ii. S%$!tit%tion of $i& firm in mar+#t for !mall#r" $i& firm can r#%c# comp#tition of

$#ac' in%!try $y rai!in& #ntry $arri#r! an i!!%ain& !mall#r compani#! froma&&r#!!i,#ly comp#tition.

iii. In t'i! ca!#* PQG -a! ,#ry !tron& in a,#rti!in& an $%yin& a! c'#aply an$%l+* an 'ar for ot'#r compani#! to comp#t# -it' it.

c. 6ain t-o ar&%m#nt!/ 3? ominanc# cr#at# t'at -o%l 'a,# ma# n#- #ntry ,irt%allyimpo!!i$l# an 32 t'#r# -o%l 'a,# $##n lo!! of pot#ntial comp#titor

. arlan 3conc%r/i. 6a1ority r#li# too m%c' on a!!%mption! an not on t'# r#a!ona$l# pro$a$ility

of -'at PQG -o%l o.ii. T'i! i! !%c' a comp#titi,# in%!try an !o #a!y to #nt#r t'at t'# pric# i! (%it#

comp#titi,# an profit! ar# r#ally la-* an if t'at i! tr%#* t'#n Cloro i!nt-orryin& a$o%t PQG #nt#rin& if it o#!nt ac(%ir# Cloro* an t'#r#for# no lo!!of pot#ntial comp#tition if t'# m#r&#r 'app#n!.

#. Not# ca!#: U v. /alstaff re*in", 1$73 i. 6ar!'all 3conc%r &i,#! t'r## !it%ation! -'#r# pot#ntial comp#tition i!

important/

?. #mon!trat# #p#ctation to #nt#r an firm #ci#! to m#r&# in!t#a2. p#rc#i,# pot#ntial #ntrant=. ominant #ntrant/

a. firm t'at #nt#r! $y m#r&in& i! !o lar&# t'at ot'#r firm! cant!%r,i,or or -ill follo- t'# l#a#r.

20



The Fourth or Current Period, #ince $%0.

The Transition Period

A. U v. eneral )yna-ics Corp* ?B4

a. T'i! i! t'# fir!t ca!# in -'ic' -# !## a c'an&# in t'# ir#ction of t'# co%rt* $%t t'i! i!not t'# ca!# t'at i! traitionally ,i#-# a! c'an&in& it t'at ca!# i! TE

$. G#n#ral ynamic! 'app#n# to ac(%ir# on# of t'# m#r&in& corp!* 6at#rial S#r,ic#.T'# ot'#r party in,ol,# -a! r##man coal minin&. Go,t claim! t'at t'i! ac(%i!ition,iolat# > of Clayton $7c t'# ta+#o,#r !%$!tantially l#!!#n# comp#tition in t'#pro%ction an !al# of coal in #it'#r or $ot' of t-o &#o&rap'ic mar+#t!. Go,t !ai t'ata! a r#!%lt of t'i! &#o&rap'ic m#r&#r t'#r# -o%l $# a !%$!tantial l#!!#nin& ofcomp#tition $7c t'#y 'a ro%&'ly 20D in Illinoi! an ?0D in t'# r#&ion* an t'#r# -a! a&#n#ral #clin# in t'# n%m$#r of firm! in t'# r#&ion.

St#-art 3for t'# co%rt 3-'o !ai pr#,io%!ly t'at t'# &o,t al-ay! -in!c. In P'ili 5an+* t'# co%rt !ai yo% n## to !## -'#t'#r t'# n%m$#r! alon# ar# #no%&' to

!'ift $%r#n to ) to 1%!tify -'y t'i! i! o+ #,#n t'o%&' t'i! -a! only 20D* co%rt -a!

-illin& to fin t'# $%r#n !'ift#.. Co%rt fin! t'at t'i! -a! NOT a ,iolation of t'# Clayton Act. T'# #clin# in t'# n%m$#r

of coal firm! 'a c'an&#* $%t it -a! a r#!%lt of t'# !'ift in #man for ot'#r !o%rc#! of#n#r&y. Loo+# at t'# a$ility of t'# company to comp#t# $a!# t'# analy!i! on t'#n#- contract! t'# company -o%l $# a$l# to &#t in t'# f%t%r#H co%rt !a- mo!t of t'#coal -a! alr#ay committ# in lon& t#rm contract!. E!!#ntially loo+ at t'# #ff#ct t'att'# firm can 'a,# in t'# f%t%r# t'# an!-#r '#r# -a! ,irt%ally non# at all $7c t'#y ont'a,# coal in r#!#r,#! t'#y 'a,# not contract# to !#ll.

i. )i!!#nt#r! r#!pon t'at t'i! !o%n! li+# a failin& company #f#n!#. 5%t t'#Co%rt !ay! t'i! i!nt a failin& company #f#n!# $7c t'#y ar#nt a!+in& t'#company to !'o- t'#y -o%l $# &oin& $an+r%pt t'i! i! !imilar* $%t not t'#!am#.

)i!!#nt#r!#. Criticiz# t'# failin& company #f#n!#. Al!o ar&%# t'at alt'o%&' Unit# 'a not $##n

a ##p !'aft min#r* co%l 'a,# &on# o%t* $o%&'t !om# ##p !'aft lan* an #nt#r#t'# $%!in#!!.

5. Continental T.'. v. TE ylvania, 9nc, 1$77 a. I!!%# of ,iolation of > ? $y #nt#rin& into an #nforcin& franc'i!# a&r##m#nt! t'at

pro'i$it# t'# !al# of Syl,ania pro%ct! ot'#r t'an from !p#cifi# location!.$. Syl,ania ma+#! t, !#t!* an traitionally 'a !ol t'ro%&' -'ol#!al#!" -'#n t'#y !##

t'#ir mar+#t !'ar# #clinin&* #ci# to franc'i!# c#rtain i!tri$%tor! a! Syl,ania#al#r! an &i,# t'#m an #cl%!i,# ri&'t to i!tri$%t# t,! in t'# ar#a 3$%t -#r# allo-#to !#ll ot'#r $ran! a! -#ll. T'#r# -a! no &%arant## monopoly* $%t &#n#ral

%n#r!tanin& t'at -o%l $# r#-ar# if yo% i -#ll. Syl,ania incr#a!# from 2D to<D nationally* $%t only .<D in San ranci!co. Syl,ania franc'i!# anot'#r #al#r a$o%ta mil# a-ay Contin#ntal &ot %p!#t an -ant# to op#n a !tor# in Sacram#nto* $%tSyl,ania r#f%!# to #al -it' t'#m t'#r#.

c. )i!trict Co%rt/ t'o%&'t t'# ca!# -a! controll# $y ch*inn t'# t, !#t! -#r# !ol toContin#ntal -'o co%l t'#n ta+# t'#m any-'#r# an 1%ry ,#rict for Contin#ntal. Co%rtof app#al! !ai ch*inn -a! a ca!# t'at !'o%l $# limit# to it! fact!" t'i!arran&#m#nt -a! l#!! antiHcomp#titi,# ca!# !#nt $ac+ to )i!t Ct to t'in+ a$o%t aca!# in a lar&#r !#ttin& t'an t'# p#r !# r%l#.

21



Po-#ll 3for t'# co%rt. )o#!nt try to i!tin&%i!' ch*inn* $%t !ay! it i! -ron& an o,#rHr%l#! it.#. P#r !# r%l#! of ill#&ality ar# appropriat# only -'#n t'#y r#lat# to con%ct t'at i!

-anifestly antico-petitive. Co%rt fin! t'at t'i! i! not !%c' a practic#. T'i! i! a ,#rticalnonprice r#!traint an t'#r#for# !'o%l $# analyz# %n#r a r%l# of r#a!on. Loo+! att'# po!iti,# f#at%r#! of int#r$ran an intra$ran comp#tition.

f. /ree rider iss+es: Co%rt fin! t'at if yo% &i,# !om#on# a t#rritory* yo% -ill #nco%ra&#t'#m to r#ally #,#lop t'# t#rritory $y a,#rti!in& an in,#!tin& capital into t'# mar+#t$7c ont 'a,# to -orry a$o%t !om#on# fr## riin& off of yo%r -or+. If t'#r# ar# m%ltipl#i!tri$%tor!* t#n#ncy to fr## ri# $y -aitin& for t'# ot'#r p#r!on to a,#rti!# an t'#ncom# in an ta+# t'# c%!tom#r!. T'i! typ# of !y!t#m prot#ct! i!tri$%tor! a&ain!t t'i!typ# of fr## riin& an #ploitation. )o#!nt !ay t'at t'#r# cant $# in(%iry into 'o-m%c' int#r$ran an intra$ran comp#tition i! lo!t* $%t -ill $# iff#r#nt ar#a!#p#nin& on t'# pro%ct an !'o%l $# for man%fact%r#r! to #ci# !%$1#ct only tot'# #amination -'#t'#r t'#r# i! no 1%!tification for -'at t'#y ar# oin&.

&. This case o2er"rules the er se rule and is seen as a triumh of the rule ofreason once again8 and seen as really starting the current eriod1 "chwinn o2er"ruled8 and 2ertical territory allocation is sub<ect to Rule of Reason analysis1

'. :'at i t'i! o to Topcoi. Topco -a! !##n a! 'orizontal i,i!ion rat'#r t'an ,#rtical a! '#r#* an lat#r

ca!#! ma+# it cl#ar t'at Topco -a!nt o,#rHr%l#.:'it# 3conc%rrin&i. A&r##! t'at t'i! i! not a p#r !# ,iolation of t'# S'#rman Act an !'o%l $# 1%&#

%n#r r%l# of r#a!on* $%t o#!nt t'in+ t'at ch*inn !'o%l $# o,#rHr%l#.

C. r+ns*ic Corp v. 4+elo o*l2&2Mat, 1$77 a. All#&ation of ,iolation of > . 5r%n!-ic+ ma# $o-lin& #(%ipm#nt an -o%l ac(%ir#

$o-lin& all#y! from $an+r%ptcy !al#! to !al,a&# -'at t'#y co%l. P%#$lo !ai t'at it-o%l 'a,# on# $#tt#r if t'# $o-lin& all#y! -#nt o%t of $%!in#!! or -#r# ac(%ir# $y!om#on# ot'#r t'an 5r%n!-ic+* -'o 'a t'# capacity to l#!!#n comp#tition in t'#

mar+#t! in #nt#r# $y ri,in& !mall#r comp#titor! o%t of $%!in#!!.$. In or#r for t'i! ca!# to ma+# !#n!#* n## to a!!%m# t'# &o,t -o%l 'a,# -on a&ain!t

5r%n!-ic+* an to o t'at -o%l 'a,# 'a to ar&%# PQG* -'o i! a &iant in t'# in%!tryt'at $%y! %p t'in&! an -ill ominat# aft#r. In r#ality* if t'# &o,#rnm#nt -o%l 'a,#$##n %p a&ain!t t'# failin& company octrin# pl%! t'# fact t'at t'# m#r&#r la- -a!c'an&in&.

c. P%#$lo 'a! !tanin& $y t'# fact t'at t'#y -#r# '%rt $y t'# fact t'at 5r%n!-ic+ -o%l $#op#ratin& $o-lin& all#y!. Co%rt a&r## t'at t'#y !%ff#r# a 'arm* $%t fo%n it -a! notan antitr%!t in1%ry. or a pri,at# firm to fil# an antitr%!t action in t'# c%rr#nt p#rio* 'a!to $# an in1%ry t'# antitr%!t la-! -#r# #!i&n# to prot#ct. Antitr%!t la-! -ant toimpo!# t'i! in1%ry $7c it i! ca%!in& comp#tition.

. For ri2ate actions to succeed no)8 ha2e to be based on the interests of the

consumer8 not the interest of the cometitor1#. Not# ca!#: Ianover hoe v. United hoe Machinery: Only t'# fir!t p#r!on to o,#rH-ay

can !%#" t'o!# -'o t'# incr#a!# pric#! ar# pa!!# onto can not !%r#

22





c. On# ar&%m#nt ma# in t'i! ca!# i! t'at t'# co!t! of #alin& ar# &r#atly r#%c# ant'# a$ility to #al i! ma# mor# #ffici#nt +no-n a! -aret creation defense. T'#co%rt !a- t'i! r#!traint a! ain& a pro%ct rat'#r t'an #liminatin& on#. No on# i!forc# to #al -it' a $lan+#t lic#n!# t'#y ar# 1%!t an option. T'# #t#nt of t'i!r#!traint i! !imply ain& !om#t'in& to t'# -orl t'at int #i!t $#for# $7c can !till $%yini,i%al !on&! or #al ir#ctly -it' t'# arti!t.

. I! it r#a!ona$l# T'# #ffici#ncy analy!i! loo+! at = t'in&!/i. -'#t'#r c'all#n&# con%ct i! r#a!ona$ly n#c#!!ary to ac'i#,# t'# co!tH

r#%cin& #ffici#nci#!ii. -'#t'#r t'# r#!traint t'at follo-! i! act%ally n#c#!!ary to t'# mar+#t int#&rationiii. -'#t'#r t'# #ffici#ncy ac'i#,# $y int#&ration o%t-#i&'! t'# a,#r!# #ff#ct of

t'# r#!traint#. So i t'i! #liminat# t'# p#r !# r%l# in pric# fiin& ca!#!

i. No Catalan v. Tar"et ales/ an a&r##m#nt not to &rant a i!co%nt #(%al to t'#,al%# of mon#y for t'# =0 ay! -a! t'# f%nctional #(%i,al#nt of pric# fiin& anp#r !# ill#&al.

R#a!on! to !a,# a practic#/

H t#n! to cr#at# a mar+#t M9 H -'#n#,#r t'# #ffici#nci#! pro%c# ar# cr#at# #no%&'

G. AriJona v. Maricopa Co+nty, 1$#= ;not read for class<a. Importanc# of ca!# i! -'at i! !ay! a$o%t octor!. )octor! in P'o#ni -'o -#r# not

m#m$#r! of 6O! tri# to cr#at# a !y!t#m !o t'#y co%l $# comp#titi,# -it' 6O!an -o%l a&r## -it' in!%ranc# compani#! a! to octor! f##!* an pati#nt! -o%l $#c'ar&# a f## -'at -o%l co,#r all t'#ir m#ical car# a! an 6O -o%l. )octor! tri#to ar&%# t'at t'i! i! a 56I typ# arran&#m#nt in -'ic' a n#- pro%ct -a! off#r#"

Arizona c'all#n&# it a! pric# fiin& a&r##m#nt. S%pr#m# Co%rt fo%n t'at it -a! ill#&alp#r !# for t'# octor! to #!ta$li!' #,#n t'# ma c'ar&#.

. CAA v. University of &laho-a, 1$#>a. NCAA r#&%lat#! c#rtain t'in&! r#latin& to coll#&# !port! pro&ram! '#r# it -a!

r#&%latin& t'# !'o-in& of t#l#,i!# coll#&# foot$all &am#!. Som# of t'# r#!triction!incl%# r#(%irin& 2 iff#r#nt !c'ool! 'a to $# on t, -7in a 2 y#ar p#rio an no!c'ool co%l app#ar on t, mor# t'an K tim#! an 4 tim#! nationally. Try to form t'#CA* $%t NCAA !ai it -o%l !%!p#n all t'# !port! of t'# !c'ool! t'at participat# int'# CA

$. )i!t Ct/ appli#! t'# r%l# of r#a!on an fo%n comp#tition -a! r#!train#. Ct of App#al!!ay! it! p#r !# pric# fiin&.

c. S%p Ct/ NCAA tri# to ar&%# t'at it lac+# mar+#t po-#r an co%lnt r#ally controlpric# $7c t'#r# ar# many ot'#r t'in&! to -atc' on t,. Al!o ar&%# t'at it -ant! tomaintain comp#titi,# $alanc# an in or#r for p#opl# to -atc' t'#r# 'a! to $#

!%!p#n!# no on# -ill -atc' if t'#r# ar# a f#- ominant t#am!.. Co%rt %!#! a r%l# of r#a!on an !tri+#! t'i! o-n. Co%rt %!#! a +ic loo r+le n##

to loo+ at t'# ar&%m#nt!* $%t not in #c#!!i,# #tail $7c %!in& RR o#!nt m#an t'atyo% 'a,# to loo+ at #,#ry !in&l# #tail.

i. Co%rt fin! t'#r# -a! mar+#t po-#r t'i! plan r#%c# o%tp%t. Coll#&# foot$alli! a %ni(%# pro%ct -it' it! o-n mar+#t an 'a! a !p#cial #mo&rap'ic ofp#opl#. Al!o* t'# pric# -a! t'# !am# no matt#r -'ic' t#am -a! $#in& !'o-nan t'# pric# -a! fi#. Unli+# 56I* t'# !c'ool! -#r# not a$l# to lic#n!# t'#iro-n &am#!.

24



ii. Prot#ction of &at# r#c#ipt! i! not a ,ali 1%!tification* an n#it'#r o#!prot#ctin& t'# comp#titi,# $alanc#.

#. )i!!#nt/ -orri# t'at coll#&# i! mor# t'an foot$all* an ont -ant !c'ool! to t%rn intofoot$all factori#!.

f. Not# t'i! i! a fir!t ca!# in t'# mo#rn p#rio #plicitly to apply a r%l# of r#a!onanaly!i!* y#t fin t'# practic# ,iolat# > ?.

g. Not# ca!#/ U.S. v. "rown University# $%%&'i. I,y o,#rlap &ro%p 'a a&r## a! to 'o- m%c' !c'olar!'ip ai t'#y -o%l &i,# a

c#rtain !t%#nt. )i!t Ct !ai pric# fiin& an antitr%!t ,iolation" Co%rt of App#al!!ai it! not $7c coll#&#! not in tra# or comm#rc#. T'i! ca!# n#,#r -#nt to t'#S%p Ct $7c t'# Clinton amini!tration t'o%&'t t'i! -a! p#rmi!!i$l# an intapp#al.

MM in t'# mo#rn p#rio* n## to loo+ at all t'# fact! an try to r#a!on car#f%lly a! to -'at it i! t'at i!antiHcomp#titi,# an to -'at #t#nt yo% ar# a$l# to ar&%# it! anticomp#titi,#

?rou Boycotts by Cometitors

I. orth*est @holesale tationers v. 4acific tationary 8 4rintin", 1$#%

a. Nort'-#!t -a! a &ro%p t'at act# a! a p%rc'a!in& coop#rati,# 3li+# Topco it -o%l$%y in $%l+ an !#ll to anyon#* $%t m#m$#r! -o%l &#t a r#$at# at t'# #n of t'# y#ar.Nort'-#!t ma# a #ci!ion not to allo- t'o!# -'o -#r# $ot' r#tail#r! an -'ol#!al#r!*-'ic' Pacific -a!* $%t 'a &ranfat'#r cla%!#. Pacific c'an&# o-n#r! -7o t#llin&Nort'-#!t* -'ic' ,iolat# a $yla- of Nort'-#!t an N: +ic+# t'#m o%t for not t#llin&t'#m. Pacific $ro%&'t a claim t'at t'i! -a! a ,iolation of > ? an -a! p#r !# ,iolation$7c it i! a &ro%p $oycott.

$. )i!t Ct %!# r%l# of r#a!on an &rant# S for N:" Bt' Cir r#,* !ayin& p#r !# lia$ility$7c no proc#%ral !af#&%ar!.

c. Co%rt/ #ci!ion to #p#l -a! in r#!traint of tra#* $%t n## to !## if it -a!%nr#a!ona$l#. :'ol#!al# p%rc'a!in& coop#rati,#! !%c' a! N: ar# not a form ofconc#rt# acti,ity c'aract#ri!tically li+#ly to r#!%lt in pr#ominantly anticomp#titi,#

#ff#ct!. Unl#!! t'# coop#rati,# po!!#!!#! mar+#t po-#r or #cl%!i,# acc#!! to an#!!#ntial #l#m#nt #!!#ntial to #ff#cti,# comp#tition* t'# concl%!ion t'at #p%l!ion i!,irt%ally al-ay! li+#ly to 'a,# an anticomp#titi,# #ff#ct i! not -arrant#. T'# r#$at# att'# #n of t'# y#ar i! not !%c' an #!!#ntial #l#m#nt of a$ility to o $%!in#!! t'at it!'o%l $# pr# !# ill#&al.

. Rothery v. Atlas 'an (ines, 1$#6 ? this is &(K a co+rt of appeals casea. Claim of &ro%p $oycott in ,iolation of > ?. Alta! op#rat#! a 'o%!#'ol mo,in& &oo!

$%!in#!! $i&&#!t a!!#t -a! t'#ir tra#mar+* p'on# n%m$#r* an ICC lic#n!# allo-in&t'#m to #n&a&# in int#r!tat# tran!port. Ca!# aro!# aft#r #Hr#&%lation of tr%c+in& ant'# Atla! lic#n!#! not lon&#r n#c#!!ary. :'#n yo% call# a local company* t'#y -o%lmo,# %n#r t'#ir nam# an t'#ir lic#n!# rat'#r t'an t'ro%&' Atla! an $# a$l# to

%n#rc%t t'# pric#. :'#n Atla! fo%n t'i! o%t* !ai t'at t'#y -o%l only #al -it'compani#! t'at #alt only -it' t'#m* an if t'#y -ant# to o it on t'#ir o-n t'#y'a,# to %!# t'#ir o-n nam#.

$. Co%rt/ o#!nt #ny t'at t'i! i! a &ro%p $oycott* $%t fin! t'at any r#!traint on tra# i!ancillary an t'# p#r !# r%l# o#!nt apply. 5oycott! n#,#r p#r !# ill#&al %!# RR.

c. Un#r RR/i. T'#r# -ont $# any !i&nificant antiHcomp#titi,# #ff#ct $7c Atla! -ont $# a$l# to

rai!# pric#! an r#%c# o%tp%tii. ProHcomp#titi,# in t'at it a,oi! t'# fr## ri#r pro$l#m

25







c'ar&#! lo- pric#! i! not a nonpric# r#!traint. No !i&nificant !'o-in& of -'at po!iti,#int#r$ran #ff#ct! t'#r# ar# '#r#.

. Not# ca!#: Atlantic Richfield v. UA 4etrole+-/ USA P#trol#%m -a! a c%!tom#r of ARCO t'at !ol it! &a! at i!co%nt pric#!" ARCO impo!# cap on #al#r! pric#!*-'ic' -#r# !till $#lo- co!t* $%t USAP !ai t'# #ff#ct of t'# plan -a! to r#%c# it! profit

mar&in an ama&# it! a$ility to r#main in t'# mar+#t. S%pr#m# Co%rt t'r#- t'# ca!#o%t for lac+ of in1%ry. USAP -a! not t'# appropriat# P $7c it 'ant $##n !%$1#ct toantitr%!t in1%ryH t'#ir in1%ry -a! a r#!%lt of comp#tition. Co%rt i! %!in& a lac of inL+ryanaly!i!.

P. tate &il Co v. !han, 1$$7 a. O,#rHr%l#! Alrecht . F'an o-n# a !#r,ic# !tation t'at p%rc'a!# oil from Stat# Stat#

!ol -it' a !%&&#!t# r#tail pric#* an t'#r# -a! !om# l##-ay on t'# pric# t'at co%l$# c'ar&# #p#nin& on profit mar&in* $%t if !ol a$o,# a c#rtain pric# 'a to &i,#!om# to !tat#. F'an claim! t'at Stat# #n&a&# in pric# fiin& in ,iolation of > ?. F'an%ltimat#ly &o#! $an+r%pt claim# t'at if '# -a! a$l# to* co%l 'a,# c'ar&# mor# forpr#mi%m &a! an a,oi# $an+r%ptcy an !ai '# -a! p#r!onally ama&# $y not

$#in& a$l# to !#ll at t'# pric#! '# -ant# to.$. Un#r Alrecht * t'# rational# i! t'at maim%m pric#! ar# r#ally mon#y* an F'an

-o%l 'a,# a lo&ical pro$l#m -it' 'i! ar&%m#nt an not 'a,# 'a antitr%!t in1%ry.c. Co%rt/ no on# to &#t aro%n Alrecht ? !imply 'a,# to o,#rHr%l# it li+# ch*inn -a!

o,#rHr%l# in ylvania. No- it i! only minim%m conc#rt# pric#! t'at ar# p#r !# ill#&al.If it t%rn! o%t t'at yo% ar# #alin& -it' a !it%ation -'#r# !om#t'in& t'at p%rport! to $# ama i! r#ally a min* t'#n pro,# it in RR ca!#.

Pulling the 6 $ Cases Together

. = Effort! to R#concil# t'# 86o#rn9 Ca!#!a. Commi!!ion#r Cal,ani 3in Massach+setts oard of Re"istration in &pto-etry

i. Po!#! t'r## (%#!tion!/?. -'#t'#r t'# r#!traint i! in'#r#ntly !%!p#ct" t'at i!* it i! li+#ly to r#!trict

comp#tition an #cr#a!# o%tp%t If it i! not in'#r#ntly !%!p#ct* %!#r%l# of r#a!on.

2. If in'#r#ntly !%!p#ct* a!+ if t'#r# i! an #ffici#ncy 1%!tification for t'#practic# 3i.#. it ma+#! a mar+#t" impro,#! op#ration of a mar+#t. 5%t '#o#!nt limit it if it i! proH#ffici#ncy it i! !%ffici#nt for 'im 3i.#. 56I. T'i!i! a m%c' $roa#r analy!i!. Not proH#ffici#ncy* con#mn r#!triction.

=. If t'# #ffici#ncy 1%!tification i! pla%!i$l#* la!t !## if t'# 1%!tification i!,ali.

$. %&# Ea!t#r$roo+i. Propo!#! filt#r !y!t#m -ant to car# a$o%t #conomic r#ality -7o lo!in& t'#

clarity an #ffici#ncy of t'# p#r !# p#rioii. ir!t/ P !'o%l 'a,# to pro,i# a lo&ical #mon!tration t'at ) 'a! -aret

po*er " ot'#r-i!# anticomp#titi,# #ff#ct -ont !%cc##. If no mar+#t po-#r* &#tri of t'# ca!#.

iii. S#con/ P !'o%l 'a,# to !'o- t'at t'# ) 'a! an inc#nti,# to $#'a,# in ananticomp#titi,# -ay an t'at t'# antitr%!t !anction! ar# n#c#!!ary to corr#ct t'#)! inc#nti,#!. T'i! #liminat#! ca!#! all#&in& con%ct t'at -o%l $#%nprofita$l# to t'# all#&# off#n#r.

28





t'i! a,#rti!in& -7o r#&ar to -'#t'#r it -a! tr%#* an it -a! r#!triction of informationt'at con!%m#r! -o%l fin %!#f%l. E,i#nc# a$o%t -'#t'#r p#opl# n### t'i!information &o#! to proHcomp#titi,# #ff#ct!* an t'# pro$l#m of t'# ina#(%at# r#cori! t'at of t'# )!* an TC !'o%lnt $#ar t'# con!#(%#nc# of t'at. Al!o !%ffici#ntmar+#t po-#r C)A 'a <DHB0D of t'# mar+#t an it! 'ar to #nt#r.

S. 9n the Matter of 4oly"ra- Ioldin", =003, /TC &piniona. = T#nor! ma# T?* T2* an #ci# to ma+# T=. Poly&ram an :arn#r #ac' o-n#

ri&'t! of on#* an #ci# to -or+ to&#t'#r on =r. orm# 1oint ,#nt%r# to pro%c# T=an 'a a moratori%m a&r##m#nt t'at t'#y -ont a,#rti!# or !#ll t'# fir!t t-o ati!co%nt# pric#!.

$. TC !tri+#! t'i! o-n.i. ir!t* !## if mar+#t po-#r to !## if it can '%rt con!%m#r!.ii. N#t* loo+ at anticomp#titi,# #ff#ct!.iii. If anticomp#titi,# #ff#ct!* ) 'a! $%r#n to !'o- 8facially pla%!i$l# ca!#9 an

t'at 1%!tification 'a! to $# l#&ally co&niza$l# 3incr#a!# #ffici#ncy*procomp#titi,#.

i,. P t'#n &#t! to &o a&ain an ma+# mor# #tail# proof* an t'#n P can &o $ac+

an &i,# mor# #tail.c. #r# a&r##m#nt not to i!co%nt i! -'at S%p Ct !ai i! p#r !# ill#&al an facially

anticomp#titi,# $7c t'i! i! a c* not !om#t'in& li+# prof#!!ional a,#rti!in&. ProHcomp#titi,# 1%!tification t'at #arli#r r#corin&! -o%l $# fr##Hriin& i! !illy.

T'# Contin%in& Conc#rn a$o%t Ecl%!ionary Con%ct

Monoolization

T. Aspen iin" Co v. Aspen Ii"hlands, 1$#% a. Ori&inally t'r## in#p#n#nt compani#! r%nnin& = mo%ntain!" off#r# a K ay tic+#t

t'at co%l $# %!# at any of t'# t'r##. S+iCo $%y! t-o of t'# mo%ntain!* an t'#

int#rc'an&#a$l# tic+#t contin%#!. In ?BK* S+iCo op#n! a t'ir an m%c' lar&#rmo%ntain t'at i! !#t apart from t'# ot'#r t-o. T'#y i a 4 mo%ntain tic+#t $a!# on%!a&#* $%t t'# n#- mo%ntain -a! fart'#r a-ay an 'a l#!! p#opl#* !o l#!! r#,#n%#!.S+iCo tri#! to cap t'# amo%nt t'at i&'lan! co%l &#t an t'#n !tart! to a,#rti!# foronly t'#ir mo%ntain!* ma+in& it !##m li+# i&'lan! int #i!t. i&'lan! tri#! to off#ra $%nc' of t'in&! $%t S+iCo r#1#ct! t'#m all* an i&'lan! i! '%rt. S+iCo #f#n! $y!ayin& no %ty to coop#rat# -it' it! comp#titor!. Al!o ar&%# t'at i&'lan! -a!ntoff#rin& !am# (%ality an int -ant to $# a!!ociat# -it' t'#m.

i. If t'#y all i coop#rat#* it i! ar&%a$ly a con!piracy an pric# fiin&. Co%l try toar&%# t'at li+# 56I it i! a n#- pro%ct* $%t t'#!# fact! too plac# $#for# 56I.

$. Ca!# tri# on > 2 t'#ory. )i!t Ct fo%n 3an S%p Ct aopt#/i. N## to !'o- t'at ) -illf%lly ac(%ir# an maintain# monopoly po-#r $y

anticomp#titi,# or #cl%!i,# m#an! or for anticomp#titi,# or #cl%!ionaryp%rpo!#!. Not #no%&' to !'o- !om#on# 'a! !%$!tantial mar+#t !'ar# to#t#rmin# if t'#r# -a! -illf%l %!# of monopoly po-#r* 1%ry 'a! to i!tin&%i!'monopoli#! &ott#n a! a r#!%lt of !%p#rior $%!in#!! or 1%!t l%c+ fromanticomp#titi,# con%ct.

ii. No %ty to coop#rat# %n#r > 2" r#f%!al to coop#rat# may $# 1%!tifi# if t'#r# i!a l#&it $%!in#!! p%rpo!#.

iii. %ry fo%n t'at t'# pro%ct mar+#t i! o-n'ill !+iin& at #!tination !+i r#!ort!.Co%rt #fin#! &#o&rap'ic mar+#t a! !+iin& in t'# #ntir# co%ntry. I#a '#r# i!

30



t'at A!p#n i! a !%$mar+#t $7c -'#n #ciin& -'#r# to &o !+iin&* t'in+ mor#a$o%t t'# ar#a an l#!! a$o%t t'# partic%lar mo%ntain.

c. Ct of App#al!/i. U!#! #!!#ntial faciliti#! octrin# an !ai it i! n#c#!!ary to 'a,# acc#!! to

m%ltiHmo%ntain tic+#t to !%r,i,# in A!p#n mar+#t.. S%p Ct

i. T'i! ca!# i! not a$o%t a &#n#ral %ty to coop#rat# -it' ri,al!" ca!#! li+# 56Iar# #c#ption!. T'#r# may $# circ%m!tanc#! -'#r# a %nilat#ral #ci!ion not tocoop#rat# ,iolat#! > 2* $%t &#n#rally t'at i! a > ? i!!%#.

ii. Sinc# p#opl# li+# t'# 4 mo%ntain tic+#t an it -a! a !%cc#!!f%l -ay of oin&$%!in#!!* fail%r# to off#r it cant $# 1%!tifi# a! a $#tt#r -ay of mar+#tin& A!p#nor -7in A!p#n. If yo% mo,# from a !%cc#!!f%l $%!in#!! mo#l to on# t'atcon!%m#r! li+# l#!! an '%rt! yo%r comp#titor!* it i! predatory cond+ct .

iii. E,i#nc# !%pport! inf#r#nc# t'at S+i Co -a! not moti,at# $y #ffici#ncyconc#rn! an it -a! -illin& to !acrific# !'ort r%n $#n#fit! an con!%m#r&oo-ill in #c'an&# for a p#rc#i,# lon&Hr%n impact on it! !mall#r ri,al 3i.#.pr#atory con%ct.

U. 'eriJon v. Trino, =00>a. #rizon 'a monopoly po-#r o,#r t'# local p'on# lin#! prior to t'# ?BBK act" aft#r t'#

act* t'#r# -a! at l#a!t pot#ntial for comp#tition. P -a! an ATT c%!tom#r an %n'appy-it' 'i! !#r,ic#. Un#r t'# Act* #rizon 'a to !'ar# it! faciliti#! -it' ATT an -o%lfi any pro$l#m! -it' t'# !y!t#m. All#&ation '#r# -a! #rizon -a! fiin& it! o-nc%!tom#r! pro$l#m! fir!t.

$. = of t'# i!!#ntin& 1%!tic#! t'o%&'t t'at t'#r# -a! no !tanin&.Scalia 3for t'# Co%rtc. ir!t i!!%# i! -'#t'#r t'# act -a! int#n# to $# imm%n# to t'# antitr%!t la- co%rt

!ai no* t'#r# -a! a !a,in&! cla%!# t'at #plicitly pr#,#nt# t'at.. I!!%# -a! if a r#&%latory !tat%t# r#(%ir#! yo% to o !om#t'in& an r#(%ir#! it $7c t'#

!y!t#m i! #!i&n# to !tim%lat# comp#tition* !'o%l yo% $# a$l# to !ay t'at a ,iolation

of t'# r#&%latory r#(t i! al!o a ,iolation of t'# antitr%!t la-i. Ar&%m#nt t'at it !'o%l/ Stanar Oil -a! all a$o%t t'# pot#ntiality of

comp#tition t'# monopoli!t cant !%!tain 'i&'#r pric#! $7c of t'# po!!i$ility ofn#- #ntrant!* an any action to pr#,#nt t'at from 'app#nin& -o%l ,iolat# > 2.T'i! con%ct loo+! li+# it fit! -7in > 2 $7c it i! a -illf%l maint#nanc# of amonopoly po-#r $y !om#t'in& t'at fa,or! it! o-n c%!tom#r!.

#. T'i! ar&%m#nt fail# t'# !tat%t# !p#cifically !ai it -a!nt #!i&n# to ta+# antitr%!tr#m#i#! off t'# ta$l#. T'# fact t'at antitr%!t la-! ar#nt pr#cl%# o#!nt m#an t'att'#r# i! a ,iolation of t'#m. If #rizon -a!nt a r#&%lat# firm* t'#r# -o%l $# no %tyto coop#rat# li+# in A!p#n* -'ic' t'# Co%rt fo%n to $# an %n%!%al ca!# on t'# o%t#r$o%nari#!. No %ty of an #i!tin& firm to coop#rat# -it' a firm t'at -ant! to #nt#r t'#mar+#t.

f. Co%rt r#1#ct! t'# #!!#ntial faciliti#! octrin# it i! r#lati,#ly %n#fin# an t'#y ar#nt&oin& to apply it '#r#.

&. T#n! to !'o- a ,iolation of a r#&%lation i!nt in an of it!#lf #no%&' to !'o- antitr%!tin1%ry7p%rpo!#7#ff#ct

h. 6or&an i!nt !o !%r# a$o%t t'i! ca!# ca!# !'o-! all#&# anticomp#titi,# action! not#no%&'

31



Predatory Conduct

. Mats+shita Electric 9nd+strial Co v. enith Radio Corpa. )! -#r# 2? apan#!# compani#! t'at -#r# pro%c#r! of t,! an t, part!" all#&ation

t'at t'#y -#r# c'ar&in& pr#atory pric#! to ri,# P! o%t of t'# mar+#t. G#n#rally* t'#y-#r# c'ar&in& artificially 'i&' pric#! in apan* an 'a lar&# man%fact%rin& plant! an

co%lnt !#ll all t'# t,! t'#y ma# in apan* !o !ol t'#m in US. Ar&%m#nt al!o t'atapan#!# 6ini!try of Tra# -#nt alon& -it' t'i!" )! %!# t'i! to !ay t'at t'#y -#r#comp#ll# $y a !o,#r#i&n an anyt'in& t'at 'app#n# -a! a r#!%lt of apan#!#r#&%lation 3S%p Ct o#!nt to%c' t'i! i!!%#. )! !ay al!o t'at c'ar&in& 'i&' pric#! inapan o#!nt ,iolat# US antitr%!t la-!* an P! ar&%m#nt o#!nt ma+# anyco'#r#nt7#conomic !#n!#.

Po-#ll 3for t'# Co%rt$. To !%r,i,# motion for S/

i. I! t'#r# an antitr%!t in1%ry?. A! to t'# i!!%# t'at t'# apan#!# in%!try of tra# manat# minim%m

pric#!/ t'i! i! &oo for comp#titor! $7c can %n#rc%t t'#m. Not a $a!i!for antitr%!t claim.

2. :it' pri,at# antitr%!t claim!* fir!t n## to !## -'#t'#r t'# P 'a!a!!#rt# !om#t'in& t'at can $# antitr%!t in1%ry '#r# t'at int'app#n.

ii. G#n%in# i!!%# of fact?. If t'# ar&%m#nt o#!nt ma+# #conomic !#n!#* no &#n%in# i!!%# of

mat#rial fact* an S appropriat#.2. #r# t'#r# i! no i!!%# of mat#rial fact t'# pr#atory pricin& !c'#m#

ma# no !#n!#.c. Ar&%m#nt t'at c%ttin& it off $#for# it &o#! to t'# 1%ry i! &oo for t'# ) for P in an

antitr%!t ca!#* t'#r# -ill $# 'i&' #p#n!# an P! -ont $rin& a ca!# if t'#y ont t'in+t'#y -ill $# a$l# to r#co,#r $7c ) -ill ra& o%t i!co,#ry.

. Pr#atory pricin& i! rar#/ t'# pr#mi!# i! t'at yo% n## to %n#rc%t lon& #no%&' an

inc%r r#al co!t! !#llin& $#lo- t'# 6C* an n## to 'a,# t'# pro!p#ct of r#co%pin& t'#mon#y in t'# f%t%r# $y &#ttin& monopoly profit an 'op# t'at no on# #nt#r! t'# mar+#t.#r# t'# )! 'a $##n 8oin&9 t'i! for 20 y#ar! an P! !till 'a t'# ma1ority of t'#mar+#t !'ar#.

#. I! t'i! ca!# corr#cti. P%t! mor# pr#!!%r# on P to !'o- con!piracy* -'ic' i! con!i!t#nt -it'

Monsanto.ii. T'i! -a! a $a ca!# to $#&in -it'* an t'i! c%t! o-n on t'# n%m$#r of $a P

ca!#!* -'ic' i! &oo $7c > 2 ca!#! ar# #p#n!i,# to try an #f#n

f. Not# ca!#/ A.A. 4o+ltry /ar-s v. Rose Acre /ar-s, 7 th Cir, 1$#$i. Rai!# t'# i!!%# of -'at it m#an! to apply t'# initial !cr##nin& to > 2 pr#atory

pricin& ca!#!ii. Ro!# Acr# i! a ,#rtically int#&rat# #&& pro%c#r an proc#!!or. Pro$l#m in

t'at '#n! ont lay #&&! in t'# proportion of lar&#7!mall of t'# #&&! or#r#*an i!!%# of -'at to o -it' t'# #tra #&&!.

iii. On# option i! to !#ll t'# #&&! to $r#a+#r!* -'o %!# t'#m in ca+# mi an!imilar pro%ct!. 5%t Ro!# Acr# !ol t'# !%rpl%! at a i!co%nt to it! r#&%larc%!tom#r!. Comp#titor! claim# pr#atory pricin& $7c t'#y -#r# !#llin& at l#!!t'an total a,#ra&# co!t.

%&# Ea!t#r$roo+ 3for t'# Ct

32





St#,#n! 3for t'# Co%rtc. T-o part t#!t/

i. I! t'i! t-o !#parat# pro%ct!ii. U!# mar+#t po-#r to forc# c%!tom#r! to acc#pt ti# pro%ct

. If !#llin& only a !in&l# pro%ct* fact t'at t'#r# ar# t-o part! to it o#!nt ma+# it a tyin&arran&#m#nt 3i.#. a car -it' oor! i! on# pro%ct. o!pital i! tryin& to ar&%# t'at no

on# 'a! !%r&#ry -7o an#!t'#!ia. Co%rt fin! t'at t'#r# ar# t-o pro%ct! #man foran#!t'#!ia i! ,i#-# $y !om# pati#nt! a! a !#parat# #man 3pro$a$ly !om#on# -'oi! 'a,in& an #l#cti,# !%r&#ry or a -oman -'o i! &oin& to &i,# $irt'. Loo+ to #t#rmin#-'#t'#r t'#r# i! a iff#r#nt l#,#l of #man an -'#t'#r p#opl# -o%l -ant to ma+# ac'oic#.

#. I!nt only t'# fact t'at t-o pro%ct! ar# pac+a&# to&#t'#r" n## to 'a,# mar+#t po-#rto !ay t'#r# i! an ill#&al ti# 3t'i! 'a! al-ay! $##n part of t'# r%l#* $%t in t'# =r p#riot'i! -a!nt 'ar to !'o-. :'#n loo+ at t'# p#opl# -'o li,# in t'# ar#a of t'# 'o!pital*fin t'at 0D of t'# p#opl# ont %!# t'i! 'o!pital !o no mar+#t po-#r. :'#n only'a,# =0D* not #no%&' to $# !ai to $# mar+#t po-#r for p%rpo!#! of p#r !# analy!i!3t'o%&' =0D mi&'t $# mar+#t po-#r in ot'#r !it%ation!

f. Tyin& r#main! !%$1#ct to a p#r !# r%l#.

OConnor 3conc%rrin&&. :ant! to &#t ri of p#r !# r%l# for tyin& cr#at#! all t'# co!t! of r%l# of r#a!on $7c yo%

'a,# to fin c#rtain crit#ria an $y t'# tim# yo% &o t'ro%&' t'# proof of all t'o!##l#m#nt!* mi&'t a! -#ll &o t'ro%&' RR analy!i!. r%itl#!! to 'an& onto form of p#r !#r%l# -'#n yo% 'a,# #!ta$li!'# a r%l# -it' all t'# i!!%#! of a RR -7o any of t'#$#n#fit! of $#in& a$l# to !'o- t'# cont#t an $#n#fit!. :illin& to loo+ at $#n#fit! of!#llin& a! a pac+a&# 3i.#. &ro%p a,aila$l#" #n!%r# &oo octor!.

'. To !## if ill#&al ti# pr#!#nt/i. S#ll#r m%!t 'a,# mar+#t po-#r in tyin&Hpro%ct mar+#tii. S%$!tantial t'r#at t'at t'# tyin& !#ll#r -ill ac(%ir# mar+#t po-#r in ti#Hpro%ct

mar+#t.?. %!# to only loo+ at ollar ,al%#

iii. m%!t $# co'#r#nt #conomic $a!i! for tr#atin& t'# tyin& an ti# pro%ct! a!i!tinct

?. c%!tom#r! -o%l -ant to 'a,# on# -7o t'# ot'#r 2. '#r#* -ont -ant !%r&#ry -7o an#!t'#!ia* or an#!t'#!ia -7o !%r&#ry.

T'#r#for# m#anin&l#!! to tal+ a$o%t in#p#n#nt #man for t-o it#m!.o!pital al!o cant &#t mor# mon#y $y !#llin& t'# t-o to&#t'#r can &#tmonopoly profit $y rai!in& pric# of op#ratin& room

i. Ti#Hin !'o%l $# con#mn# only -'#n it! anticomp#titi,# impact o%t-#i&'! it!contri$%tion to #ffici#ncy.

1. Ecl%!i,# #alin&/ i! pro,i#r $#in& for#clo!# from practicin&7!#llin& t'#ir pro%ct5a!# on pro,i#r! alt#rnati,#! only =0D pati#nt! #cl%# an no !%$!tantial #ff#cton comm#rc#.

. East-an !oda v. Technical ervices, 1$$= a. S##n a! pot#ntially c'an&in& ir#ction of antitr%!t la- !##n a! raical. 5%t lat#r ca!#!

r#ally !'o- t'i! i! !tan alon#.$. All#&# ,iolation of > ? an > 2. Foa+ ma# r#lati,#ly %n%!%al pro%ct! an 'a to

$# !#r,ic# to pr#ci!# tol#ranc#!. P! -#r# in#p#n#nt !#r,ic# or&anization! t'at-o%l !#r,ic# Foa+ mac'in#! Foa+ t'#n aopt# polici#! to limit a,aila$ility ofpart! to t'#!# !#r,ic# pro,i#r!. If yo% -#r# a c%!tom#r an -ant# to &#t Foa+

34



part!* &o to Foa+ for !#r,ic# or 'a,# yo%r o-n #mploy##! o !#r,ic# 3$%t no =r parti#!.

c. )i!t Ct/ P i! r#ally !ayin& -'#n yo% $%y Foa+ mac'in#* al!o ar# r#(%ir# to $%yFoa+ !#r,ic# 3#(%ipm#nt an !#r,ic# ti# not part! an !#r,ic#! li+# P claim#.Foa+ 'a! no mar+#t po-#r o,#r t'# #(%ipm#nt.

5lac+m%n 3for t'# co%rt

. Foa+ 'a mar+#t po-#r o,#r t'#ir o-n part! !om# ma# $y Foa+* !om# $y ot'#rman%fact%r#r!. 5%t t'at -a! t'# only t'in& Foa+ 'a po-#r o,#r. In or#r to &#t part!yo% -ant* 'a,# to $%y !#r,ic#.

#. Foa+ tri#! to !ay not !#parat# pro%ct!/i. On# int#&rat# pro%ct ont -ant a part -7o !#r,ic# t'# part i! int#&rally

part of t'# !#r,ic# $#in& on#. Can !om#tim#! o !#r,ic# -7o part! 3i.#. t%n#%p an !om#tim#! -o%l -ant part -7o !#r,ic#.

ii. Co%rt fin! t'at it r#ally t-o pro%ct!/ !om# c%!tom#r! -ant to p%rc'a!#!#r,ic# an part! !#parat#ly.

f. Foa+ tri#! to !ay no mar+#t po-#r o,#r it! part!/i. No mar+#t po-#r o,#r #(%ipm#nt !o cant 'a,# mar+#t po-#r o,#r t'# part! for

t'# #(%ipm#nt* $7c t'# p#opl# -'o $%y t'# #(%ipm#nt in t'# fir!t plac# -ill

a!!#!! part a,aila$ility i!!%# -'#n #ciin& -'at mac'in# to $%y. If !##+in&monopoly pric#! o,#r pric#* -ill ri,# a-ay p#opl# from $%yin& t'# mac'in#.Co%rt !ay! not an on7off !-itc' -'#r# !om# 'a,# mar+#t po-#r 'a,# to l#t Ptry to #mon!trat# t'at t'#r# i! !%ffici#nt mar+#t po-#r an can c'ar&# 'i&'#rpric#! $7c of #&r## of po-#r t'#y o 'a,#. Al!o* -o%l ma+# it c'#ap to r#pairmac'in# $%t c'ar&# a lot for part!.

ii. Lif# cycl# ,al%ation i! too iffic%lt.&. P#opl# -'o alr#ay 'a a Foa+ mac'in# -#r# t'# on#! r#ally in tro%$l# Foa+

'ant aopt# t'i! policy %ntil p#opl# alr#ay $o%&'t t'# mac'in#!.'. a! 'a a la!tin& impact on t'# c'an&# of t'# !tanar for S appar#nt $ia! in fa,or

of ) !##m! to 'a,# $##n a$anon# $y t'# CtScalia 3i!!#ntin&

i. Ta+#! o$1#ction to t'# fact t'at t'# ma1ority i! tyin& part! to !#r,ic# a! oppo!# to#(%ipm#nt to !#r,ic# -ill al-ay! fin monopoly po-#r -7yo%r o-n part!.

1. Cant $# p#r !# ill#&al if yo% ont 'a,# po-#r o,#r t'# pro%ct -'ic' yo% ar# &i,in& a-arranty for if yo% co%l 'a,# !ol pro%ct! -it' -arranty* t'i! !'o%l $# t'# !am#t'in&.

+. P#opl# -'o ar# $%yin& t'#!# mac'in#! ar# !mart an -ill fi&%r# o%t lif# cycl# co!t #no%&' p#opl# -ill o t'i! !o t'at Foa+ 'a! to pric# comp#titi,#ly.

Titanic #truggle o2er *lleged E:clusionary Beha2ior " the Microsoft Cases

W. U v. Microsoft, )C Ct of Appeals, 1$$#a. I56 &a,# 6icro!oft t'# opport%nity to $# t'# OS on it! comp%t#r!* -'ic' i! 'o-

6icro!oft &ot it! !tart. Onc# 6icro!oft 'a it! pro%ct* ,#ry lo- 6C to i!tri$%t# it.Simpl# c'aract#ri!tic of $#in& t'# firm t'at &ot to t'# top $y &oo l%c+ in ot'#r t'an an

Alcoa typ# -orl m#an! -# ont -ant to ma+# it ill#&al.$. )O -a! -orri# t'at 6icro!oft -o%l %!# monopoly po!ition in OS mar+#t to r#(%ir#

p#opl# to $%y t'in&! t'at co%l 'a,# $##n !ol comp#titi,#ly $%t -o%l $#com# part of6icro!oft monopoly.

c. Con!#nt #cr##/i. Allo-# 6icro!oft to #,#lop 8int#&rat# pro%ct!9

35



ii. NOT allo- 6icro!oft to #nt#r into lic#n!# a&r##m#nt! -'#r# t#rm! ofa&r##m#nt conition# on lic#n!in& of any ot'#r co,#r# pro%ct* OS* !oft-ar#

. In t'i! ca!#* 6icro!oft incl%# IE a! part of :ino-! 3pr#,io%!ly -a! an aHon"ar&%m#nt t'at t'i! ,iolat# con!#nt #cr##. 6icro!oft !ai it! an impro,#m#nt of t'#mac'in# it!#lf to mo,# from -or proc#!!in& to t'# int#rn#t.

#. Co%rt !ai t'i! -a! NOT tyin& ca!#* $%t 1%!t a$o%t tryin& to #nforc# t'# con!#nt

#cr##. Go,t ar&%#! t'at t'# OS for a p#r!onal comp%t#r i! -'at t%rn! it on" t'#$ro-!#r i! -'at allo-! yo% to play on t'# int#rn#t. %!t a! &am#! can $# !olcomp#titi,#ly* !o to i! acc#!! to t'# int#rn#t.

f. Co%rt fin! t'at t'i! i! an int#&rat# pro%ct i. a monopoli!t co%l not incr#a!# it! profit for -ino-! $y int#&ratin& t'#!#

pro%ct! 3not -'at yo% #p#ct a firm #n&a&in& in #ploitation to o.ii. Int#&ration con!i!t! of ta+in& t-o pro%ct! an ma+in& $#tt#r pro%ct t'an if t'#

t-o -#r# p%t to&#t'#r $y ini,i%al!iii. %!t n## to !'o- t'at impro,#m#nt in pro%ct! ar# act%ally impro,#m#nt!*

an if t'at i! !o t'#n Co%rt -ill allo- it&. :al 3conc%rrin&7i!!#ntin&/ conc#rn# too #f#r#ntial approac' an o%&'t to $#

!%$!tantial r#(%ir#m#nt of 6icro!oft !'o-in& r#al !yn#r&i#! !'o-in& t'at t'i! $#n#fit!

con!%m#r i. 2 factor! to $alanc#/

?. #,i#nc# of !yn#r&i#! r#al $#n#fit! to c%!tom#r! -7int#&ration2. in#p#n#nt #,i#nc# t'at a &#n%in# mar+#t #i!t! for t'# 2 pro%ct!

pro,i# !#parat#lyii. $alancin& t#!t/ t'# &r#at#r t'# #,i#nc# of i!tinct mar+#t!* t'# mor# of a

!'o-in& of !yn#r&y 6icro!oft m%!t ma+# in or#r to 1%!tify incorporatin& -'at-o%l ot'#r-i!# $# an 8ot'#r9 pro%ct into an 8int#&rat#9 -'ol#. If #,i#nc# i!-#a+* 6icro!oft 'a! to !'o- l#!!.

iii. @hile this test hasnt een *idely adopted, can s+""est it on e5a-

AA. U.. v. Microsoft, )C Cir Ct of Appeals, =001

a. Go,t fil# t'i! ca!# -it' c'ar&# of monopolization an maint#nanc# of monopolypo-#r in OS mar+#t* att#mpt to monopoliz# $ro-!#r mar+#t* #cl%!i,# #alin&* antyin&.

$. 6onopolization claim /i. Maret definition/ int#lHcompati$l# PC op#ratin& !y!t#m! -orl-i# 3Co%rt

#cl%#! 6ac! #,#n if PC! -#nt %p in pric#* mo!t p#opl# -o%lnt !-itc'Ht'#y ar# %!# to %!in& PC! an 'a,# all t'# application!.

?. 6icro!oft tri# to incl%# nonHInt#l compati$l# OS! 3li+# Appl#!76ac! ?Ct of App#al! !ai 6icro!oft %!#r! ar# loc+# into 6icro!oft" 'i&'!-itc'in& co!t!

2. Al!o tri#! to ar&%# palm pilot! an t'# li+# !'o%l $# incl%# Ct ofapp#al! r#1#ct! t'i!.

=. 6icro!oft tri#! to incl%# mil#-ar# Ct of App !ai 6il#-ar# !ait'at it i! not t'# !am# no- a! an OSZ

ii. 4roof of -onopoliJation in violation of N = / 6icro!oft -a! tryin& to !tamp o%tmil#-ar# it -o%l pro,i# a platform for t'# op#ration of !oft-ar# %!in&ot'#r op#ratin& !y!t#m!. 6il#-ar# -o%l cr#at# a $a!i! for applicationpro&ram! to r%n on !om#t'in& ot'#r t'an :ino-!.

iii. )i!t Ct !ai t'at 6icro!oft int#&rat# IE* an t'at can only $# !ai a! a -ay to+ill #,#lopm#nt of N#t!cap#.

36



i,. Ct of *eals said for 6 7 2iolation/?. to $# con#mn# a! #cl%!ionary* a monopoli!t! act m%!t 'a,# an

anticomp#titi,# #ff#ct2. P m%!t #mon!trat# t'at t'# monopoli!t! con%ct in## 'a! t'#

r#(%i!it# anticomp#titi,# #ff#cta. i.#. antitr%!t in1%ry

=. If P !%cc#!!f%lly #!ta$li!'# prima faci# ca!# %n#r > = $y#mon!tratin& anticomp#titi,# #ff#ct* t'#n monopoli!t can proff#r a proHcomp#titi,# 1%!tification for it! con%ct

4. if monopoli!t! proHcomp#titi,# 1%!tification !tan! %nr#$%tt#* t'#n t'# Pm%!t #mon!trat# t'at t'# anticomp#titi,# 'arm of t'# con%cto%t-#i&'! t'# proHcomp#titi,# $#n#fit

<. La!t* loo+ at EECT of con%ct* NOT INTENT,. Ct of App#al! !ai no pro$l#m in &i,in& a-ay IE for fr## #,#n t'o%&' )i!t Ct

!ai it -a! pr#atory pricin&. Unl#!! yo% can !'o- a co!t to 6icro!oft* notpr#atory.

,i. Pro$l#m i! $y t'# lic#n!in& a&r##m#nt -it' t'# OE6S #cl%!i,# #alin& if-'at yo% ar# oin& ma+#! it iffic%lt for p#opl# to ta+# a-ay yo%r monopoly

vii. Ct of App#al! fin! > 2 ,iolation a n%m$#r of t'# c'ar&#! -#r# ofanticomp#titi,# #ff#ct! 3i.#. a&r##m#nt! -it' OE6! an ISP!

c. Att#mpt to monopoliz# $ro-!#r mar+#ti. Go,t lo!t on t'i! i!!%# n#,#r p%t on i!!%# of -'at t'# $ro-!#r mar+#t i! 3i.#.

!iz#. N## t'#ory on -'at t'# mar+#t i!* an -'at t'# mar+#t !'ar# i!. Not'#ory* no ca!#.

. Ecl%!i,# #alin& i!!%#/i. )i!t Ct fo%n no #cl%!i,# #alin&

#. Tyin&/i. )i!t Ct !ai t-o pro%ct!* not on#. Cit# Foa+ an #ff#r!on Pari!'. :illin& to

fin p#r !# tyin&ii. Ct of App#al!/

?. acc#pt# )i!t Ct finin&! t'at t'#r# -#r# t-o pro%ct!" int#rn#t acc#!!i! iff#r#nt pro%ct from OS !y!t#m.

2. !om# in%!tri#! in -'ic' it i! inappropriat# to apply p#r !# ill#&ality to

t'# $%nlin& of -'at ar# conc##ly t-o pro%ct! tim#! -'#n it i!i!'onora$l# to con!%m#r! an inappropriat# to o !o 3i.#. !p#ll c'#c+-it' a -or proc#!!in& pro&ram.

=. N## to apply r%l# of r#a!on in !oft-ar# in%!try.a. )i -'at OConn#r call# for in #ff#r!on Pari!'.$. A!+ t'# (%#!tion/ -o%l a firm -7o mar+#t po-#r $%nl# in t'i!

mar+#t )o#! it $rin& !om#t'in& to con!%m#r! R#man t'i! fort'# )i!t Ct to #al -it'.

4. . elements to er se tying 2iolation,

a. tyin& an ti# &oo! ar# t-o !#parat# pro%ct!$. ) 'a! mar+#t po-#r in tyin& pro%ct mar+#tc. ) affor! con!%m#r! no c'oic# $%t to p%rc'a!# t'# ti# pro%ct

from it. Tyin& arran&#m#nt for#clo!#! a !%$!tantial ,ol%m# of

comm#rc#.f. :o%l $r#a+in& %p 6icro!oft $# a Unit# S'o# 6ac'in# :o%l it #!troy t'#

company )O o#!nt $r#a+ it %p !#t! %p r#(%ir#m#nt! of -'at t'#y cant o.&. Un#r t'i! ca!#* t'# proof ta+#! t'# form t'at/

37



i. P! con%ct 'a anticomp#titi,# p%rpo!#7#ff#ctii. ) can t'#n !'o- #ff#ct! -#r# proHcomp#titi,# an !%ffici#nt to o,#rHcom#

anticomp#titi,# aff#ct !'o-niii. P can t'an r#$%t

'. Un#r t'i! ca!# t'#n* A!p#n -o%l $# t'at t'#r# -a! no proHcomp#titi,# #ff#ct.

OO -ae s+re to *ei"h and analyJe the facts for each caseOO define -aret, -aret po*er, *illf+l-aintenance, any defense for cond+ctG

55. Clayton >T'# artHScottHRoino Acta. if t'# !iz# t'r#!'ol! ar# m#t 3200 million a!!#t! -it' ot'#r firm! a!!#t! of <0 million

alon#* t'#n pr#Hm#r&#r notic# 'a! to $# fil# =0 ay! prior to t'# m#r&#r $#in& clo!#$. m#r&#r may $# p%t on 'ol* $%t t'# m#r&#r may i# %rin& t'# tim# It i! on 'ol.. Inc#nti,# for parti#! to &#t a&#nci#! 'appy a! !oon a! po!!i$l# a&#nci#! #n %p

i#ntifyin& c#rtain pro%ct or &#o&rap'ic mar+#t! -'#r# t'#r# i! a partic%lar pro$l#m*an t'# parti#! -or+ on #liminatin& t'at part of t'# m#r&#r.

Merger Re2ie)

CC. 6#r&#r G%i#lin#! 3p. 4a. )#fin# a f%nam#ntal #,il for -'#n m#r&#r cr#at# antitr%!t ri!+ -aret po*er

i. 6ar+#t po-#r/ :'#t'#r or not yo% can maintain pric#! a$o,# comp#titi,# l#,#lfor a !i&nificant p#rio of tim#

ii. Pr#mi!# of t'i! #finition i! t'at if yo% 'a,# a firm t'at yo% !'o- i! con!i!t#ntlya$l# to !#ll pro%ct #,#n t'o%&' it! pric#! ar# a$o,# a comp#titi,# l#,#l* can!ay t'at t'# firm i! not !%$1#ct to t'# %!%al con!traint! of comp#tition an 'a!mar+#t po-#r $%t t'at o#!nt m#an it! a monopoli!t $%t it co%l $#capa$l# of %!in& t'# po-#r to #n&a&# in tyin&.

$. & issues in the analysis of a merger i. o#! t'# mar+#t &#t !i&nificantly mor# conc#ntrat#

?. if no !i&nificant incr#a!# in conc#ntration* orinarily no f%rt'#r analy!i!2. mar+#t #finition/

a. co%l t'i! p#r!on rai!# pric#! an maintain it for a y#ar T'#oryi! t'at if yo% ima&in# t'at t'#r# i! a !in&l# firm !#llin& t'i!pro%ct* -ill p%rc'a!#r! $# a$l# to !'ift to !%$!tit%t# If y#!*'a,# to incl%# t'o!# !%$!tit%t#! in t'# mar+#t. :ant !mall#!tpro%ct7&#o&rap'ic #finition

=. mar+#t !'ar#/ if t'#r# ar# p#opl# capa$l# of r#cyclin& formally %!#pro%ct an $rin&in& it $ac+ for !al#* t'#n it !'o%l $# con!i#r# part oft'# mar+#t 3a! in ALCOA

4. I in# / !%m t'# !(%ar#! of t'# ini,i%al mar+#t !'ar#! of allparticipant!

a. Po!tHm#r&#r I 5#lo- ?000/ %nconc#ntrat#$. Po!tHm#r&#r I $#t-##n ?000H?00/ mo#rat#ly conc#ntrat#c. Po!tHm#r&#r I a$o,# ?00/ 'i&'ly conc#ntrat#

ii. :'#t'#r t'# m#r&#r in li&'t of mar+#t conc#ntration an ot'#r factor! t'atc'aract#riz# t'# mar+#t rai!#! conc#rn a$o%t pot#ntial a,#r!# comp#titi,##ff#ct!

?. tal+ a$o%t a$ility of firm! to #n&a&# in coll%!i,# pricin&a. #a!y to coll%#

38



$. Ea!y to #t#ct c'#atin&2. Loo+ at Po!n#r analy!i! aft#r Am#rican Col%mn

iii. Ea!# of #ntry?. = !t#p analy!i!

a. can #ntry ac'i#,# !i&nificant mar+#t impact -7in a tim#ly p#rio$. #ntry -o%l $# profita$l#

c. tim#ly an li+#ly #ntry -o%l $# !%ffici#nt to r#t%rn mar+#t pric#!to pr#Hm#r&#r l#,#l

i,. A!!#!!m#nt of any #ffici#ncy &ain! t'at r#a!ona$ly cant $# ac'i#,# $y t'#parti#! t'ro%&' ot'#r m#an! 3ar# t'#r# m#r&#rH!p#cific #ffici#nci#!.

,. ailin& firm If t'# m#r&#r int &o t'ro%&'* -o%l on# party #it t'# mar+#t

)). /TC v. taples and &ffice )epot, )ist Ct for )ist of Col+-ia, 1$$7

a. Stapl#! an Offic# )#pot -ant# to m#r&# 3[? Q [2 offic# !%p#r!tor#! tri# an%m$#r of t'in&!* an TC !##+! pr#lim in1%nction* an -'#n t'#y &ot in t'# parti#!#n# %p -al+in&

$. G#o&rap'ic mar+#t/ m#tropolitan ar#a! i. Co%rt -a! -orri# a$o%t !mall $%!in#!!#!

ii. :'y -#r#nt int#rn#t !al#! incl%# into &#o&rap'ic mar+#t If &o,t -#r# &oin&to incl%# it* it -o%l incl%# a m%c' $i&&#r mar+#t -it' Stapl#! an O) 'a,in&a ,#ry !mall !'ar#.

c. Pro%ct mar+#t/i. )#f#nant!/ !al# of offic# pro%ct! in nort' Am#rica 3only <D of t'i! mar+#tii. Go,t/ !al# of offic# pro%ct! t'ro%&' offic# !%p#r!tor#!iii. Co%rt !ay! loo+ f%nctional int#rc'an&#a$ility concl%#! t'at l#&al pa i! t'#

!am# a! yo% &#t any-'#r#.i,. T'#n &o#! to cro!!H#la!ticity of #man loo+ at if t'i! i! !%$mar+#t 3i! t'#r#

!%ffici#nt !%$!tit%t# !o t'at t'#y -ont acc#pt an incr#a!# of <D in pric# o,#r ay#ar '#r# co%rt !ay! t'at t'i! i! it! o-n mar+#t an p#opl# -o%l contin%#comin& #,#n in pric# incr#a!#.

,. Co%rt loo+! at ata of t'# firm! t'#m!#l,#! to !## -'o! pric#! t'#y 'a to+##p trac+ of to !tay comp#titi,# t'# offic# !%p#r!tor#! loo+# to #ac' ot'#rmor# t'an to :alHmart or &roc#ry !tor#!. Al!o loo+# at -'o t'# c%!tom#r!-#r#.

,i. Part of t'# pro$l#m i! t'at t'#!# compani#! co%l c'ar&# t'# <D incr#a!# $7ct'#y ar# alr#ay !#llin& for a lot l#!! t'an nonHoffic# !%p#r!tor#! !o incr#a!#in pric# -ont ca%!# p#opl# to t%rn a-ay.

. Co%rt tal+! a$o%t t'#!# firm! rai!in& pric#! a$o,# comp#titi,# l#,#l! if t'#y m#r&#*$%t t'at -o%l !till $# l#!! t'an -'at t'#ir comp#titor! -#r# !#llin& for.

EE. /TC v. I IeinJ

a. t'r## ma1or play#r! in $a$y foo mar+#t" G#r$#r 3K<D* #inz 3?D* 5##c'HN%t 3?<D #inz an 5##c'HN%t -ant to m#r&# !o t'at &o from = firm to 2 firm mar+#t* $%t t'#m#r&#r -o%l only &i,# t'#m 'alf t'# mar+#t of -'at G#r$#r 'a!. #inz an 5##c'Hn%t#ac' &#t 'alf t'# !tor#! mo!t !tor#! only carry G#r$#r an on# ot'#r.

$. Compani#! try to ar&%# t'at t'# c%!tom#r! -ont !## anyt'in& iff#r#nt t'an t'#y ono-. Go,t !ay! t'#r# -ont $# #ntry to !ol,# any pro$l#m! t'at ari!# an t'#ory a!to -'y t'# m#r&#r cr#at#! a pro$l#m i! t'at t'#r# i! c%rr#ntly comp#tition to $# t'#!#con company on t'# !'#lf.

39



c. Co%rt !ay! t'# comp#tition to $# t'# !#con p#r!on on t'# !'#lf -ill $#n#fit t'#con!%m#r!.

. I! t'#r# pro$l#m for coll%!ioni. Pric#! r#aily a,aila$l#" pro%ct! r#lati,#ly 'omo&#no%!ii. C'#atin& -o%l $# r#lati,#ly iffic%lt

#. Effici#nci#! ar&%m#nt/

i. irm! !ai t'at #inz co%l 'a,# pro%c# 5##c'Hn%t pro%ct! at it! plant -o%l $# a$l# to $#tt#r comp#t# a&ain!t G#r$#r $7c #inz 'a $#!t facility an5##c'Hn%t 'a $#!t r#cip#!.

f. Co%rt/i. Not #ciin& m#rit!* $%t only if &o,t can try t'# ca!# an &rant! pr#lim

in1%nction $%t at t'at point t'# m#r&#r f#ll t'ro%&'

(nterlay bet)een (P and *ntitrust

. G#n#ral Point! from t'# G%i#lin#!a. for antitr%!t p%rpo!#!* int#ll#ct%al prop#rty i! li+# any ot'#r prop#rty$. pat#nt! ont carry a pr#!%mption of mar+#t po-#r

c. lic#n!in& of IP can $# a proHcomp#titi,# -ay to com$in# complim#ntary fac#t! ofpro%ction.

. T-o typ#! of mar+#t!/i. T#c'nolo&y mar+#t!ii. R#!#arc'7inno,ation mar+#t!

GG. 9nter"raph v. 9ntel, Ct of Appeals, /ed Cir, 1$$$a. Int#l man%fact%r#! comp%t#r proc#!!or!" Int#r&rap' i! an OE6. Int#r&rap' 'a %!#

8clipp#r9 t#c'ni(%# to ma+# it! o-n proc#!!or!* $%t &a,# %p an !tart# %!in& Int#l!.:'#n Int#r&rap' !tart# $%yin& Int#l c'ip!* Int#l ma# it a partn#r an &a,# itpropri#tary information* an -'#n Int#l cam# o%t -it' a n#- c'ip* Int#r&rap' co%l !ayt'#y 'a,# it in t'#ir mac'in#!. Int#r&rap' c'ar&#! Int#l -it' pat#nt infrin&#m#nt of it!

clipp#r t#c'nolo&y in ma+in& t'#ir o-n c'ip!. A! a r#!%lt* Int#l !topp# pro,iin&!p#cial $#n#fit!* t'o%&' t'#y !till pro,i# t'# c'ip!. Int#r&rap' r#!pon! t'at Int#l i! amonopoli!t an ,iolatin& > 2 $y !##+in& to c%t off Int#r&rap' into not p%r!%in& pat#ntri&'t!.

$. Int#r&rap'! t'#ory a! to -'y #ntitl# to in1%nction &rantin& it all it 'a $#for#/ if pat#ntri&'t! ar# to m#an anyt'in& 'a! to incl%# a$ility to #nforc# t'#!# ri&'t!* an if $i&company can intimiat# !mall on# into not #nforcin& ri&'t!* -ill ri,# !mall compani#!o%t of $%!in#!! an mi!%!in& po-#r.

c. 6onopolization claim/i. Only r#l#,ant tar&#t of monopolization i! comp#titor of monopoli!t* an '#r#

t'#y -#r#nt comp#titor! 3t'i! i! Int#l! ar&%m#nt.ii. Cit#! to A!p#n S+iin& 'a,in& ominant po!ition o#!nt m#an yo% ar# a

monopoli!t.iii. Po!!i$l# ar&%m#nt i! t'at Int#r&rap' co%l $#com# a comp#titor lat#r on i#a

t'at yo% -ill l#t monopoli!t cr#at# '%rl#! for pot#ntial comp#titor! i! a! m%c'an int#rf#r#nc# -it' pot#ntiality of comp#tition a! anyt'in& #l!#.

i,. T#mptin& '#r# to !ay t'at Int#r&rap' $ro%&'t t'i! pro$l#m on it!#lf t'# Co%rt'#r# 'a! a!!#rt# a! a matt#r of antitr%!t la- t'at > 2 o#!nt apply to t'o!#-'o ar# not comp#titor! of t'# monopoli!t!

?. 6or&an !ay! t'at t'i! propo!ition i! not in#,ita$l#.

40



d. E!!#ntial faciliti#! ar&%m#ntr#1#ct#i. I#a t'at to pro%c# in t'i! mar+#t* t'#!# typ#! of c'ip! ar# #!!#ntial an n##

#no%&' a,anc# info !o yo%r r#ay -'#n t'# pro%ct com#! o%t.ii. Ar&%m#nt t'at in t'# pat#nt fi#l i! t'at anyon# -'o 'a! a ,al%a$l# pat#nt

-o%l $# forc# to lic#n!# it. Ar&%m#nt in r#!pon!# i! t'at yo% -ill &#t t'# profitfor lic#n!in& it

iii. On&oin& i!!%# $#t-##n #!ir# to r#tain IP a! prop#rty or oppo!# to acoll#ction of contract ri&'t!.

e. L#,#ra&in& Ar&%m#nt r#1#ct#i. Int#r&rap' ar&%# t'at Int#l! r#f%!al to #al -o%l cr#at# comp#titi,#

a,anta&# in 2n mar+#t 3&rap'ic! !ayin& Int#l -a! tryin& to &#t intoInt#r&rap'! mar+#t an 'a $o%&'t a comp#titor of Int#r&rap'!

ii. Co%rt r#!pon! t'at t'#r# -a! no proof in att#mpt to monopolization ca!#!*n## to !'o- t'at t'#r# i! a 8an&#ro%! pro$a$ility of !%cc#!!.9 Int#l !o farfrom an&#ro%! pro$a$ility of !%cc#!! t'at t'#r# can $# no att#mpt tomonopoliz#

f. Co#rci,# r#ciprocity ar&%m#nt r#1#ct#i. I#a of ar&%m#nt i! 8I -ill $%y !om#t'in& from yo% if yo% $%y !om#t'in& from

m#9 att#mpt to %!# yo%r mar+#t po-#r to &#t !om#on# to patroniz# yo%.Int#r&rap' !ai Int#l r#f%!# to !#ll it! t#c'nical ata %nl#!! Int#r&rap' -o%l!#ll Int#l pat#nt ri&'t!

ii. Co%rt r#1#ct! t'i!/ Int#l i! not tryin& to forc# Int#r&rap' to $%y anyt'in&.&. U!# of IP to r#!train tra#/

i. Co%rt !ai t'at pat#nt 'ol#r can impo!# -'at#,#r r#(%ir#m#nt! it -i!'#! ont'# lic#n!## of it! IP

?. $%t t'i! i!nt tr%# 9nternational alt

. Andre5 4har-ace+ticals v. iovail Corp, Ct of Appeals, )C Circ+it, =001a. P -a! 5io,al" $ot' 5 an A 'a appli# to ma+# &#n#ric ,#r!ion of r%&. I!!%# 'a to

o -it' complyin& -it' fairly complicat# r#(%ir#m#nt! #!i&n# to !p## %p t'#proc#!! of &#ttin& &#n#ric alt#rnati,#! to t'# mar+#t. 5 -ant! to ma+# on# of t'#!#r%&!" in it! -ay i! A. R#(%ir#m#nt! for &#n#ric r%& 3? ma+# application 32 c#rtify nopat#nt* #pir#* in,ali* or -o%lnt $# infrin&# on. 6RI 'a t'# ori&inal pat#nt" Aclaim! not infrin&in& %n#rlyin& pat#nt. 6RI t'#n 'a! a c#rtain amo%nt of tim# to fil#!%it a&ain!t A" t'#n =0 mont' p#rio in -'ic' no on# #l!# can apply. A #nt#r# into#al -it' 6RI not to ma+# &#n#ric r%& an $7c t'#y -#r# not ma+in& it* t'# =0mont' p#rio -o%l n#,#r $#&in an 5 -o%l $# pr#,#nt# from ma+in& t'# r%&.

$. I!!%#/ -a! t'# #al $#t-##n 6RI an A -'#r#$y A -o%l not ma+# t'# r%& it -a!no- lic#n!# to ma+# an antitr%!t ,iolation or !imply a pat#nt #al

c. )i!t Co%rt/i. 5 co%lnt !'o- it -o%l 'a,# #nt#r# t'# mar+#t at all $7c no appro,al for t'#

r%& %# to !tat%tory proc#%r# an no in1%ry in fact. Ct. of App#al!

i. 5 -a! !till pot#ntial comp#titor an 'a pl# r#ay* -illin&* an a$l# to #nt#r t'#mar+#t

ii. S#n it $ac+ for 5 to r#Hpl#a an !'o- t'#y ar# -illin& an a$l# to #nt#rmar+#t. If t'#y o t'#y* fact t'at t'#y cant &#t lic#n!# i! -'at t'#y ar#complainin& a$o%t.

41



iii. A claim# it! con%ct 'ant ca%!# 5! lo!! !ai t'at t'# !tat%t# cr#at# 5!pro$l#m* not t'#ir con%ct. A 'a n#,#r $##n r#(%ir# to $rin& pro%ct tomar+#t" only to fil# fir!t. Co%rt !ay! on# t'in& for A to #ci# alon# not to &oa'#a" $%t compl#t#ly iff#r#nt to con!pir# to a&r## -it' 6RI to pr#!#r,#monopoly !tat%t# -a! #!i&n# to o,#rcom#.

#. R#main! a t'r#at from t'# point of ,i#- of IP p#opl# t'at con%ct t'at !##m!

p#rmi!!i$l# to t'# participant! may ,iolat# antitr%!t la-! to t'# #t#nt it! not p#rc#i,#a! !imply #nforcin& pat#nt ri&'t $%t in,ol,#! con!piracy not to allo- comp#tition toocc%r.

(nterlay bet)een Regulation and *ntitrust +a)s

II. ##ral R#&%lationa. #rizon ,. Trin+o /

i. form of t'# f##ral r#&%lation i!!%#ii. ,iolation of a r#&%latory r#(t* #,#n on# r#(%irin& comp#tition* i! not an antitr%!t

,iolation. Stat# R#&%lation

a. All from Par+#r ,. 5ro-n/i. antitr%!t la-! -#r# #!i&n# to #al -it' pri,at# action! $y pri,at# firm!* not

t'# action! of !o,#r#i&n !tat#!.ii. CA rai!in pro%c#r! 'a &ott#n to&#t'#r an lo$$i# to limit t'# n%m$#r of

rai!in! t'at co%l $# !ol in any &i,#n y#ar.iii. I!!%#/ i f# antitr%!t la-! not r#ac' t'# coll#cti,# action

$. No#rri. Effort to &#t !%c' a la- a! in Par+#r or m##tin& to&#t'#r to i!c%!! typ# of la-

-o%l li+# ar# NOT antitr%!t ,iolation! if $onafi# #ffort to &#t r#&%latory r#li#f ii. T'# 8No#rrHP#nnin&ton )octrin#9iii. NOT con!piracy %n#r antitr%!t act

c. Golfar$

i. Cam# %p -it' minim%m f## !c'#%l#" Co%rt fo%n t'i! iff#r#nt $7c not r#(%ir#$y t'# Co%rt no comp%l!ion

ii. To $# #ntitl# to Par+#rH5ro-n prot#ction* 6UST $# REUIRE) $y !tat# la- too act

. Cantori. Stat# r#&%lation may not ##mpt action from t'# f##ral antitr%!t la-! %nl#!!

t'# anticomp#titi,# con%ct i! n#c#!!ary in or#r to ma+# t'# r#&%latory act-or+

#. California R#tain Li(%or )#al#r! A!!n ,* 6ical Al%min%mi. 6anatory r#tail pricin& contraict# )r. 6il#!* S.C. !ai #,#n r#!al# pric#

maint#nanc# can $# or#r# $y !tat# I/?. Cl#arly artic%lat# an affirmati,#ly #pr#!!# a! !tat# policy

2. Acti,#ly !%p#r,i!# $y !tat#FF.. o+thern Motor Carriers Rate Conference v. U ;1$#%<

a. intra!tat# tr%c+ lin#! -a! r#&%lat# $y !tat# a&#ncy !tanar -ay of oin&rat#ma+in& i! t'at company !%$mit! propo!# rat# an !tat# a&#ncy appro,#! oram#n! it. T'#r# -a! coll#cti,# rat# ma+in& a%t'oriz#" !%$mit a 1oint propo!al an$%r#a% #ci#! -'#t'#r to appro,# t'# rat#!.

$. T'i! !##m! to $# 1%!t li+# Tran!H6i!!o%ri" #f#n!# -a! t'# !am# t'# commi!!ion-o%l 'a,# to #t#rmin# rat#.

c. Co%rt an parti#! a&r## 6ical -a! controllin&.

42



. Non# of t'# !tat# a&#nci#! !ai t'at it -o%lnt acc#pt ini,i%al !tat# propo!al!.%!tic# )#pt !ai no prot#ction a! %n#r 6ical %nl#!! !tat# 'a! !ai t'at t'#y -antcoll#cti,# rat# ma+in&. Co%rt o#!nt a&r## -it' t'i! ar&%m#nt !ai t'i! i! ap#rmi!!i,# !tat# policy !tat# +no-! -'at -a! &oin& on o#!nt r#(%ir# it* $%t 'a!ntpro'i$it# it.

#. 4er-issive $#cam# $a!i! for cl#ar artic%lation of !tat# policy

f. -a! t'#r# acti,# !%p#r,i!ion Co%rt concl%#! t'# !tat# i con%ct rat# '#arin&! anr#(%ir# proof o,#r r#a!ona$l#n#!! of t'# rat#!.

&. Coll#cti,# rat# ma+in& acti,iti#!* alt'o%&' not comp#ll# $y t'# Stat#!* ar# imm%n#from antitr%!t lia$ility %n#r Par+#r.

St#,#n! an :'it# 3i!!#nt'. ma+# t'# point t'at t'i! i! a #part%r# from t'# #arli#r ca!#! t'at r#(%ir# comp%l!ion.

Comp%l!ion #mon!trat#! cl#arly artic%lat# !tat# policy.i. Conc#rn t'at p#opl# -ill $#&in to $%y prot#ction from f##ral antitr%!t la-! $y

!%pportin& c#rtain politician!. 1. Par+#r -a! an %n%!%al #ci!ion an at a tim# -'#n t'#r# -a! a #pr#!!ion

+ocal Regulation

LL. City of (afayette v. (o+isiana 4o*er 8 (i"ht ;note case<a. m%nicipal #l#ctric co -a! all#&# to 'a,# #n&a&# in !'am liti&ation a&ain!t a pri,at#

%tility an to 'a,# r#(%ir# p%rc'a!#r! of city -at#r !#r,ic#! to $%y city po-#r. City!ai it -a! not a p#r!on t'at co%l ,iolat# t'# S'#rman Act. Co%rt i!a&r##* an !ait'at a city can $# an antitr%!t plaintiff !o it co%l $# a #f#nant.

66. Co--+nity Co--+nications Co v. City of o+lder ;note case<a. Not op#nin& %p ca$l# to c#rtain p#opl# a! pro,i#r! ,iolat# S'#rman Act

NN. /isher v. City of ereley 3not# ca!#a. R#nt controll# orinanc# #nact# $y $allot initiati,#. Co%rt !ai t'i! typ# of r#&%lation

-a! %nilat#rally impo!# $y t'# city an not a con!piracy amon& t'# r#!i#nt!t'#m!#l,#!* or t'# r#!i#nc#!

OO. Col+-ia v. &-ni &+tdoor Advertisin" ;1$$1<a. Ca!#/ COA 'a B<D of t'# mar+#t an -a! a local $%!in#!!" &a,# !#r,ic#! to c#rtain

politician!. Omni !%#* !ai Col%m$ia 3t'# city an COA ,iolat# >>?* 2 -it'anticomp $ill$oar con!piracy $7- Omni an city official! -'#n t'# city intro%c# anorinanc# r#!trictin& !iz#* location an !pacin& of $ill$oar! 3$a!ically pro'i$itin& anyn#- $ill$oar!. T'i! fa,or# COA* $7c COA alr#ay 'a mo!t of t'# $ill$oar!. Sai/T'i! -'at i!'#r m#ant -'#n 8pro%ct of local con!piracy9 i!c%!!# a! point -'#r#lo!# imm%nity from f# antitr%!t la-!* an !ai city 'a NO a%t'or to r#&%lat# [$ill$oar!

$. Co%rt 3. Scalia/i. S%pr#m# Co%rt i! not fi&'tin& t'# point t'at a city i! not a !tat# it i! a cr#ation

of t'# !tat#. Unl#!! t'# city can !'o- t'at t'# !tat# &rant# t'# city a%t'ority to#n&a&# in a r#&%lation t'at -o%l r#%c# comp#tition* city! r#&%lation -ont $#prot#ct#.

ii. City o#! not 'a,# t'# !am# po-#r n## to !'o- a%t'oriz# $y t'# !tat# too t'i!.

iii. Co%rt fin! t'# #l#&atin& a%t'ority '#r#. T'# city 'a! a%t'ority to r#&%lat#$ill$oar! %n#r S.Carolina !tat# !tat%t#!* %n#r t'# zonin& po-#r of t'# cityan it! a$ility to act for 8&#n#ral '#alt' an -#lfar#9 of it! citiz#n!. :'#n city

43



can #n&a&# in zonin&* can -it''ol c#rtain $#n#fit!* an t'i! i! a form ofr#&%lation $y r#!trictin& -'#r# t'#r# -ill $# $ill$oar!.

i,. NO con!piracy #c#ption?. p%$lic official! oft#n a&r## to o anticomp t'in&!2. all l#&i!lation to !om# #&r## ; con!piracy* an yo% cant $an it allV 57c

all l#&i!lation i! r#!%lt of p#opl# -antin& it* lo$$yin& for it an con!pirin&

to &#t it=. MMCAN pro!#c%t# $ri$#ry* #tc. on o-n t#rm!* $%t not %n#r antitr%!t la-

c. )i!!#nt 3St#,#n!* :'it#* 6ar!'all/i. L#t! &#t $ac+ to ?!t principl#!* t'# !o,#r#i&n cant cr#at# monopoli#! for t'#ir

fri#n!VV 3!## t'# Ca!# of 6onopoli#!V !o -'y l#t city of Col%m$ia o itii. S'o%l $# mor# -orri# a$o%t local r#&%lation! t'an f##ral $7c t'#!# not ta+#

&r#at#r7national &oo into con!i#ration. C'#ap#r to $%y a city co%ncil t'an t'#l#&i!lat%r#V

. Prof#!!ional R#al E!tat# In,#!tor! ,. Col%m$ia Pict%r#! 3not#i. Liti&ation i! a !'am -'#n/

?. la-!%it m%!t $# o$1#cti,#ly $a!#l#!! in t'# !#n!# t'at no r#a!ona$l#liti&ant co%l r#ali!tically #p#ct !%cc#!! on t'# m#rit!

2. co%rt !'o%l foc%! on -'#t'#r t'# $a!#l#!! la-!%it conc#al! an att#mptto int#rf#r# ir#ctly -it' t'# $%!in#!! r#lation!'ip of t'# comp#titor!.

(nternational *lication of *ntitrust +a)

PP. Iartford /ire 9ns+rance v. California ;1$$3<a. !%it $ro%&'t $y t'# Attorn#y G#n#ral! of a f#- !tat#! an all#&in& con!piracy in

in!%ranc# in%!try. T-o in#p#n#nt &ro%p!/ 3? ISO! t'at pro,i# lan&%a&# ant#rm! for polici#! t'at compani#! co%l aopt or not aopt" an 32 r#in!%ranc#. 4in!tanc#! t'at ar# all#&ation! of con!piraci#!/ 3? claim! ma# policy* not occ%rr#nc#policy occ%rr#nc# policy m#an! t'at yo% ar# co,#r# for#,#r for anyt'in& t'at'app#n# -'il# yo% -#r# in!%r#. Claim! ma# policy co,#r! anyt'in& claim# %rin&

t'# tim# t'# policy #i!t#. 32 r#troacti,# at#/ 'a to $# inci#nt t'at occ%rr# -7in ac#rtain tim# 3= !%#n an acci#ntal #liminat# 34 l#&al #f#n!# co!t cap.

$. 6o!t of t'# compani#! oin& t'# r#in!%ranc# -a! in Lonon 3Lloy! US compani#!tri# to &#t t'# ISO! to c'an&# t'# policy form! an to ma+# it -or+ t'#y 'a top#r!%a# Lloy! to !ay t'#y -ont r#in!%r# %nl#!! t'# form! pro,i# t'# n#- t#rm!.

c. :a! t'i! t'# $%!in#!! of in!%ranc# an %n#r 6cCarranH#r&%!on act 3'a! #c#ptionfor $oycott )ont &#t into t'i! '#r#

. T'# firm! -#r# !ayin& t'at 5riti!' r#&%lation of in!%ranc# allo-# -'at -a! on# '#r#an t'#r#for# !'o%l not ,iolat# US la-.

i. Li+# in 6at!%!'ita ,. W#nit'* $%t t'# co%rt int ar#!! t'i! i!!%# '#r#.ii. 5riti!' m#t'o of r#&%latin& t'# in!%ranc# in%!try i! t'at t'#y can $# tr%!t#

an allo- t'#m to r#&%lat# t'#m!#l,#! i.#. So%t'#rn 6otor! 3#no%&' for !tat#

to !ay -# +no- yo%r oin& it t'i! -ay* an -# tr%!t yo%.So%t#r 3for t'# co%rt

#. US antitr%!t la-! -#r# int#n# to r#ac' for#i&n con%ct -it' om#!tic #ff#ct!f. I! t'#r# a conflict $#t-##n 5riti!' an US la- '# m#an! -'#t'#r yo% -o%l 'a,# to

,iolat# 5riti!' la- to comply -it' US la- not t'# ca!# '#r#.&. P#rmi!!i,# r#&%lation in Gr#at 5ritain not !%ffici#nt to imm%niz#

Scalia 3i!!#nt'. A!!%m# t'at US la- not int#n# to ,iolat# US la- or to intr%# on ot'#r co%nti#!

!o,#r#i&nty

44



i. :o%l #nforc#m#nt int#rf#r# -it' t'# 5riti!' -ay of oin& t'in&! Concl%#! t'at it-o%l -o%l $# appropriat# for t'# co%rt! to ##rci!# pr#!cripti,# comity not to applyUS antitr%!t la- a$roa.

:'o i! ri&'t 1. )ont -ant to a!!#rt o%r la-! a&ain!t compani#! -'o ar# complyin& -it' US la-+. T-o pro$l#m!/

i. Ot'#r co%ntri#! a!!#rtin& t'#ir la-! a&ain!t %!ii. Compani#! not -antin& to o $%!in#!! '#r#.

l. 6or&an/ &i,in& l#!! #f#r#nc# t'an -# &i,# to !tat#!

. E-pa"ran v. /. Ioff-an2(aRoche, Ct. of Appeals, )C Circ, =003a. Int#rpr#t! TAIA$. P! ar# all#&in& t'at t'#y ar# ,ictim! of con!piracy $y for#i&n ,itamin compani#! no

(%#!tion t'at t'# con%ct ,iolat# US antitr%!t la-!.c. I!!%# -a! &i,#n t'# fact t'at mo!t P! an )! -#r# for#i&n compani#! an in,ol,#

o,#rH!#a! acti,iti#! co%l t'i! $# liti&at# in US Co%rt. All P!* )!* an con%ct too+plac# o%t!i# of US.

. Ar&%m#nt for 7) -a! t'at t'# #n r#!%lt of t'# con!piracy 'a #ff#ct! in t'# US.

E%rop#an la- int pro,i# t'#!# p#opl# a r#m#y in t'#ir 'om# co%ntri#!.#. Ar&%m#nt t'at t'#y !'o%l $# a$l# to fil#/

i. iolat# t'# S'#rman Act in t'# !#n!# t'at t'#r# -#r# !om# US #ff#ct! t'at'a $##n r#r#!!# in pr#,io%! action $y %!tic# )#pt.

ii. )#t#rr#nc# #ff#ct r#aliz#! co%l ma+# mor# mon#y oin& it t'an it -o%l 'a,#

to pay in ama&#! to US citiz#n! an -o%l o it ar&%m#nt i! t'at in or#r to&#t ama&#! !i&nificant #no%&' to #t#r* n## #no%&' P! t'at ar# a$l# to fil#an ma+# t'# ama&#! lar&# #no%&' to #t#r.

f. a to $# a US #ff#ct $%t if t'#r# -a!* #,#ryon# co%l $rin& !%it&. Co%rt 'ol! -'#r# anticomp#titi,# con%ct 'a! r#(%i!it# 'arm on US comm#rc#*

TAIA p#rmit! !%it! $y for#i&n plaintiff! -'o ar# in1%r# SOLE $y t'at con%ct!#ff#ct! on for#i&n comm#rc#

'. 5i& foc%! of #t#rr#nc#i. Al!o tac+l#! i!!%#! of STAN)ING of for#i&n P!

i. To m##t con!tit%tional r#(%ir#m#nt! of !tanin& %n#r Clayton Act* antitr%!t Pm%!t #!ta$li!' 8in1%ryHinHfact9 or t'r#at#n# 8in%ry in fact9 ca%!# $y )! all#&#-ron&oin& 3Anr

?. T'# for#i&n p%rc'a!#r! '#r# 'a,# Con!t. Stanin&* all#&# t'#y !%ff#r#in1%ryHinHfact -'#n t'#y pai inflat# pric#! for ,itamin! ir#ctly to )!*an t'i! in1%ry all#&#ly ca%!# $y )! con!piracy to fi ,itamin pric#!aro%n t'# -orl

ii. Antitr%!t P m%!t al!o #!ta$li!' 8antitr%!t in1%ry9 ; in1%ry of typ# antitr%!t la-!int#n# to pr#,#nt an flo-! from t'at -'ic' ma+#! )! act! %nla-f%l 3P%#$lo5o-lHOH6at

?. #r#/ antitr%!t la-! for$i pric# fiin& t'at 'arm! US comm#rc#*incl%#! fiin& of pric#! in for#i&n mar+#t! -'#r# t'# con%ct 'arm! UScomm#rc#

2. for#i&n p%rc'a!#r! 'arm# $y con%ct t'at ,iolat# t'# S'#rman Act* a&lo$al pric#Hfiin& con!piracy" payin& inflat# pric#! a lo!! of typ#,iolation of S'#rman Act -o%l $# li+#ly to ca%!#

Documents

Antitrust - Morgan - Spring 2004.doc