The US Supreme Court extends monopoly predatory pricing standards to monopsony predatory bidding practices (Weyerhaeuser)

On February 20, the U.S. Supreme Court issued a significant opinion in which it concluded that the test it had set forth previously to govern predatory pricing cases applies also to cases involving allegations of predatory bidding. See Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co., Inc., 2007 WL 505794 (U.S. Feb. 20, 2007). Section 2 of the Sherman Act prohibits companies with a dominant market presence from engaging in anticompetitive and exclusionary behavior to further consolidate or maintain their power. Although difficult to prove under the requirements set forth by the Court in Brooke Group Ltd. v. Brown & Williamson Tobacco Corp., 509 U.S. 209 (1993), predatory pricing is considered to

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Authors

  • Skadden, Arps, Slate, Meagher & Flom (Washington DC)
  • Skadden, Arps, Slate, Meagher & Flom (New York)

Quotation

Steven C. Sunshine, Shepard Goldfein, The US Supreme Court extends monopoly predatory pricing standards to monopsony predatory bidding practices (Weyerhaeuser), 20 February 2007, e-Competitions Bulletin Burden of proof, Art. N° 45597

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