The US Supreme Court confirms the narrow scope of "State Action" doctrine (FTC v. Phoebe Putney)

In FTC v. Phoebe Putney, the Supreme Court has unanimously reversed the Eleventh Circuit holding that a Georgia hospital authority's acquisition of a hospital was covered by state-action immunity, emphasizing that "state-action immunity is disfavoured". The Supreme Court held that, as the State had not clearly articulated and affirmatively expressed a policy allowing the hospital authority to make acquisitions that substantially lessen competition, state-action immunity does not apply. The acquisition for which the hospital authority claimed immunity would have given it an 86 percent market share for acute-care hospital services provided to commercial health plans in the area around Albany, Georgia. In Justice Sotomayor's first antitrust opinion since joining the Supreme Court, the

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  • Jones Day (Washington DC)
  • Jones Day (Washington DC)

Quotation

Toby G. Singer, Philip A. Proger, The US Supreme Court confirms the narrow scope of "State Action" doctrine (FTC v. Phoebe Putney), 19 February 2013, e-Competitions Bulletin US Supreme Court, Art. N° 51296

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