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The US Supreme Court issues an opinion allowing a supplier to establish a system of resale prices enforced by unilateral refusal to deal (Colgate)

In a brief and unanimous decision in United States v. Colgate & Co. [1], the Supreme Court announced in 1919 that in the absence of any purpose to create or maintain a monopoly, the Sherman Act “does not restrict the long recognized right of trader or manufacturer engaged in an entirely private business freely to exercise his own independent discretion as to parties with whom he will deal, and, of course, he may announce in advance the circumstances under which he will refuse to sell” [2]. The decision, which became known as the Colgate doctrine, essentially held that a supplier-announced system of resale prices enforced by unilateral refusal to deal, without more, does not constitute a violation of Section 1, because a Section 1 violation requires proof of an agreement between two

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Anna M. Pavlik, The US Supreme Court issues an opinion allowing a supplier to establish a system of resale prices enforced by unilateral refusal to deal (Colgate), 2 June 1919, e-Competitions Bulletin 1919, Art. N° 52679

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