The US Supreme Court holds it is per se illegal for a manufacturer to set minimum resale prices in agreements with independent resellers (Dr. Miles Medical / John D. Park & Sons)

In 1911, the U.S. Supreme Court in Dr. Miles Medical Co. v. John D. Park & Sons Co. [1] held that a manufacturer’s setting the minimum prices at which independent resellers may resell its products was unlawful under the common law and Section 1 of the Sherman Act [2].That result spawned the current per se rule-that all such agreements are illegal under the Sherman Act without regard to their purpose or effect [3]. In late 2006, the Supreme Court agreed to revisit that blanket prohibition in Leegin Creative Leather Products, Inc. v. PSKS, Inc [4].This article contends that, for the reasons set out below, the per se rule against vertical minimum resale price agreements (RPM) has outlived the underpinnings of Dr. Miles, is not separately justified under current antitrust principles,

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Barbara Bruckmann, The US Supreme Court holds it is per se illegal for a manufacturer to set minimum resale prices in agreements with independent resellers (Dr. Miles Medical / John D. Park & Sons), 3 April 1911, e-Competitions Bulletin Competition in the Pharmaceutical sector, Art. N° 52947

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