CHAPTER 42: ANTITRUST LAW
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
Chapter 42
2
INTRODUCTION TO ANTITRUST LAW
1. Need for Government Regulation of
the Marketplace
2. Principal Legislation:
a.
b.
c.
d.
Sherman Act
Clayton Act
Federal Trade Commission Act
Robinson-Patman Act
Chapter 42
3
INTRODUCTION TO ANTITRUST LAW
3.
Basic Principles
a. Jurisdiction
b. Exemptions
4. Enforcement
a. Criminal
b. Civil
c. Private Right of Action
i. Treble damages plus fees
ii. “Tangible injury” Requirement
Chapter 42
4
MONOPOLIZATION
1. Nature of a Monopoly
a. Section 2 of the Sherman Act
b. Monopoly Power
c. Factors:
i. Relevant Product or Service
ii. Market Share
iii. Intent
Chapter 42
5
MONOPOLIZATION
2. Monopoly: Share of Market
3. Relevant Market
a. Appropriate Product or Service
b. Geographic Area
4. Intent
a. Nature
b. “Thrust Upon” Defense
5. Attempting to Monopolize
Chapter 42
6
RESTRAINTS OF TRADE
1. Basic Provisions
a. 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
Chapter 42
7
RESTRAINTS OF TRADE
1. Basic Provisions
…
d. Horizontal Restraints
i. Horizontal Price-Fixing
ii. Horizontal Division of the Markets
iii. Horizontal Group Boycotts
e. Vertical Restraints
i. Vertical Price-Fixing
ii. Vertical Division of the Markets
iii. Vertical Group Boycotts
Chapter 42
8
RESTRAINTS OF TRADE
2. Advanced Provisions
a. Clayton Act: Exclusionary Contracts
i. Tying Arrangements
ii. Exclusive Dealing Arrangements
b. Clayton Act: Mergers
i. Horizontal Merger
ii. Vertical Merger
iii. Conglomerate Merger
Chapter 42
9
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
Chapter 42
10
INTERNATIONAL CONSIDERATIONS
1. Reach of United States Law
2. Reach of Foreign Laws
Chapter 42
11
CHAPTER 42: ANTITRUST LAW