CHAPTER 42: ANTITRUST LAW

Learning Objectives:• Introduction to Antitrust Law• Monopolization Under the Sherman Act• Restraints of Trade –

Sherman Act Clayton, Robinson-Patman Acts

• International Applications

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CHAPTER 42: ANTITRUST LAW

1. Need for Government Regulation of the Marketplace

2. Principal Legislation:a. Sherman Act

b. Clayton Act

c. Federal Trade Commission Act

d. Robinson-Patman Act

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INTRODUCTION TO ANTITRUST LAW

3. Basic Principlesa. Jurisdiction

b. Exemptions

4. Enforcementa. Criminal

b. Civil

c. Private Right of Actioni. Treble damages plus fees

ii. “Tangible injury” RequirementChapter 42 4

INTRODUCTION TO ANTITRUST LAW

1. Nature of a Monopolya. Section 2 of the Sherman Act

b. Monopoly Power

c. Factors:i. Relevant Product or Service

ii. Market Share

iii. Intent

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MONOPOLIZATION

2. Monopoly: Share of Market

3. Relevant Marketa. Appropriate Product or Service

b. Geographic Area

4. Intenta. Nature

b. “Thrust Upon” Defense

5. Attempting to MonopolizeChapter 42 6

MONOPOLIZATION

1. Basic Provisionsa. Concerted Action

b. Sherman Act, Section 1: “contract, conspiracy, or combination”

c. “Unreasonable Restraint of Trade”i. Per se violation: conclusive

ii. Rule of reason violation: case-by-case analysis

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RESTRAINTS OF TRADE

1. Basic Provisions …d. Horizontal Restraints

i. Horizontal Price-Fixingii. Horizontal Division of the Marketsiii. Horizontal Group Boycotts

e. Vertical Restraintsi. Vertical Price-Fixingii. Vertical Division of the Marketsiii. Vertical Group Boycotts

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RESTRAINTS OF TRADE

2. Advanced Provisionsa. Clayton Act: Exclusionary Contracts

i. Tying Arrangements

ii. Exclusive Dealing Arrangements

b. Clayton Act: Mergersi. Horizontal Merger

ii. Vertical Merger

iii. Conglomerate Merger

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RESTRAINTS OF TRADE

2. Advanced Provisions

…c. Price Discrimination

a. Role of the Robinson-Patman Act

b. Types of Price Discrimination

c. Defenses:i. Cost Justification

ii. Meeting Competition

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RESTRAINTS OF TRADE

1. Reach of United States Law

2. Reach of Foreign Laws

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INTERNATIONAL CONSIDERATIONS

CHAPTER 42: ANTITRUST LAW