The US Court of Appeals for the Third Circuit rejects antitrust claims predicated on a supplier’s market-share discount program and other promotional tactics (Eisai / Sanofi)

On May 4, 2016, the U.S. Court of Appeals for the Third Circuit announced its decision in Eisai, Inc. v. Sanofi Aventis U.S., LLC, [1] rejecting antitrust claims predicated on a supplier’s market-share discount program and other promotional tactics. While the court’s decision adds some definition to an amorphous standard that has long plagued companies with strong U.S. market positions, bundling and other aggressive price-based behavior by such firms unfortunately remains an issue that poses uncertainty and antitrust risk. Nevertheless, the Eisai decision reinforces several key tenets of U.S. monopolization law, including that lack of coercion of customers is key to avoiding antitrust liability and that the result of bundling must be to injure competition and not just one or more

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Authors

  • Baker Botts (Washington)
  • Baker Botts (Washington)
  • Baker Botts (Washington)
  • Baker Botts (Washington)

Quotation

Nathan Chubb, John M. Taladay, Stephen Weissman, Joseph Ostoyich, The US Court of Appeals for the Third Circuit rejects antitrust claims predicated on a supplier’s market-share discount program and other promotional tactics (Eisai / Sanofi), 4 May 2016, e-Competitions May 2016, Art. N° 95128

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