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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)Your search returned 31497 results
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In 1911, the U.S. Supreme Court in Dr. Miles Medical Co. v. John D. Park & Sons Co. 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.That result spawned the (...)
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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., 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 (...) -
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The US Supreme Court finds a genuine agency relationship between a manufacturer and its distributors focusing on the form of consignment contracts and the parties’ actual practices (General Electric)Introduction Under the U.S. antitrust laws a manufacturer is free to set the prices at which it sells its own goods and is free to use intermediaries to facilitate the sales. When intermediaries come into the picture, however, one of the antitrust issues that may arise is whether, on the one (...) -
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The US Supreme Court finds agency relationship between a manufacturer and its distributors to be a sham amounting to Resale Price Maintenance (RPM) focusing on the competitive effects and the purpose behind the agreements (Simpson / Union Oil)Introduction Under the U.S. antitrust laws a manufacturer is free to set the prices at which it sells its own goods and is free to use intermediaries to facilitate the sales. When intermediaries come into the picture, however, one of the antitrust issues that may arise is whether, on the one (...) -
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The US Court of Appeals for the District of Columbia Circuit remands a case due to the lower court’s provision of several incorrect jury instructions and failure to instruct on the “essential facilities” doctrine in a case affecting the market for major-league professional football (Hecht / Pro Football)The U.S. District of Columbia Circuit Court of Appeals remanded a jury verdict in a case between a potential franchisor and the operator of the Washington Redskins football team because the lower court improperly instructed the jury on a number of issues. This Court determined that the lower (...) -
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The US Supreme Court rejects the attempt to justify a restrictive practice on the basis of the potential threat that competition poses to the public safety and the professional ethics (National Society of Professional Engineers)Classic Antitrust Cases: National Society of Professional Engineers v. United States, 435 U.S. 679 (1978)* As an antitrust attorney, over time you see the same major cases cited again and again. It is only natural that you develop favorites. Here at The Antitrust Attorney Blog, we will, from (...) -
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The Irish High Court accepts in principle yet rejected on the facts a claim based on Art. 82 EC in a civil action (Cadbury Ireland/Kerry Co-operative Creameries)Factual background The second defendant undertaking in this case, Dairy Disposal, is an undertaking which, under the watchful eye of the Minister for Agriculture, disposes of significant statutory powers to acquire privately owned creameries and to possibly transfer them to co-operative (...) -
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The UK High Court refuses to strike out an action challenging the compatibility of measures taken by a state controlled body with EC Treaty provisions and EC Regulation (An Bord Bainne/The Milk Marketing Board)In the present judgment, rendered in 1984, the English High Court (Queen’s Bench Divisional Court) effectively relied on the direct effect of the then Art 86 EEC (now Art 82 EC) in order to allow a privately owned co-operative organisation to challenge the compatibility of decisions taken by the (...) -
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The US Court of Appeals for the Ninth Circuit affirms a jury’s verdict that an agreement entered by competitive sports teams constitute an unreasonable restraint of trade in the market for professional football teams and their home stadiums (LA Mem’l Coliseum Comm’n / NFL)The Ninth Circuit Court of Appeals, applying a rule of reason analysis, affirmed a jury verdict that an agreement between NFL teams requiring a 2/3 vote before allowing one team to move within the home territory of another team violated the Sherman Act, Section 1. Rejecting the NFL’s arguments, (...) -
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Imputation of the infringement of a subsidiary to its parent company: The Court of Justice of the European Union rejects the appeal against the Tribunal’s decision in the plastic industrial bags case (FLS Plast)In a new episode in the industrial bags cartel case, the Court of Justice of the European Union has rejected, in a judgment delivered on 19 June 2014, the Commission’s proposal to amend the rules on the protection of consumers’ rights.the appeal brought by FLS Plast A/S in Case C-243/12 against (...) -
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The U.S. FTC holds that a for-profit hospital chain’s acquisition of a competing hospital is in violation of § 7 of the Clayton Act and § 5 of the FTC Act (AMI / AMISUB)American Medical International, Inc. (“AMI”) is a Delaware corporation engaged in the operation and management of proprietary hospitals in the United States and in foreign countries. AMI owns approximately 64 hospitals in the United States and abroad and it is the third largest proprietary (...) -
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The EU Commission monitors remedies offered by software company in an abuse of dominant case (IBM)"The 1984 IBM Undertaking - Commission’s monitoring and practical effects"* 1. Introduction On 1 August 1984, IBM made an undertaking (U/T) to the Commission concerning IBM‘s future behaviour in the matter of mainframe interface disclosure and memory bundling. In response to the U/T, and on the (...) -
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The UK High Court awards an interim injunction restraining a breach of Art 81 EC as it was proven that there is a serious question to be tried (Cutsforth / Mansfield Inn)In the present case, the applicant sought the extension until trial or further order of an interim injunction granted ex parte against the defendants. This application was accepted by the trial judge, Sir Neil Lawson J., for reasons which will be set out presently. Before proceeding to the (...) -
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The Court of First Instance of Charleroi considers a copyright exclusivity clause to be pro-competitive and awards damages for the breach of the clause by videotapes sellers (GPFI / DGD / VRP)Background The proceedings in that case were initiated by GPFI, Belga Film, Cinélibre, la Médiathèque de la Communauté française de Belgique and Super Video Production respectively copyright holder and licensees of the movie “Un homme à ma taille”. The complainants sued DGD and VRP, two companies (...) -
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A Scottish Court refuses, on the balance of interests, to grant interim measures to prevent a proposed merger (DCL-Argyll Group/Guiness-The Distillers Company)The present cases concerns an order for interim measures sought by Argyll Group Plc in order to prevent the proposed merger of Guinness and the “Distillers Company Plc (hereinafter “DCL”). Although the purpose of Argyll’s request was merely to obtain the provisional prevention of the Guinness/DCL (...) -
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The US Court of Appeals of Iowa (Eighth Circuit) finds a distributorship scheme to be a genuine agency relationship where a manufacturer retains significant business risks (Ryko Manufacturing / Eden Services)Introduction Ryko, a manufacturer of car-wash equipment, filed an action for declaratory judgment against Eden, one of its distributors, for breach of a distributorship contract. Eden counterclaimed on several grounds, including antitrust violations, and won a jury verdict of $1.1 million in (...) -
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The US Court of Appeals for the Second Circuit affirms a nominal jury verdict of $1 for illegal monopolization by a professional football league (USFL / NFL)The U.S. Second Circuit Court of Appeals affirmed a jury verdict awarding the U.S. Football League (“USFL”) only $1 in nominal damages against the National Football League (“NFL”) and agreed with the jury’s finding that the NFL did not engage in exclusionary conduct through its agreements with (...) -
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The U.S. District Court for the Western District of Virginia rejects the government’s attempt to stop a proposed merger of two not-for-profit hospitals (Carilion Health System / Community Hospital of Roanoke Valley)The United States Justice Department (“DOJ”) filed suit to prevent defendants, Carilion Health System, a not-for-profit corporation which owns and operates Roanoke Memorial Hospitals, and Community Hospital of Roanoke Valley, a not-for-profit corporation which owns and operates Community Hospital (...) -
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The Luxembourg Commercial Court found non-compete, price fixing and exclusivity clauses in a franchising agreement severable from the rest of the agreement (Wintergarten Feddersen / Soluver)The undertakings Wintergarten Feddersen and Soluver concluded in 1985 a franchising agreement for the distribution of verandas. In 1987 Wintergarten Feddersen, the franchisor, brought proceedings against Soluver, the franchisee, before the Tribunal de commerce (“Commercial Court”) of Luxembourg (...) -
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The US Court of Appeals Seventh Circuit affirms lower court’s decision to enjoin proposed consolidation of nonprofit hospitals as violative of antitrust laws (RMC / SAC)On September 27, 1987, Rockford Memorial Corporation (“RMC”), a not-for-profit corporation which owns and operates a general acute care hospital in Rockford, Illinois, and SwedishAmerican Corporation (“SAC”), a not-for-profit corporation which also owns and operates a general acute care hospital in (...) -
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The German Federal Court of Justice holds that the formerly applicable vertical price fixing prohibition generally applies when the granting of rebates is subject to the maintenance of certain prices that a producer has recommended to the dealers (Nora-Kunden-Rückvergütung)Description of the impugned case The BGH holds that in the event that a producer of automobile spare parts offers his dealers rebates under the condition that the dealers do not exceed the prices recommended by the producer in their contracts with certain customers, such price recommendation (...) -
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Competition law regime and policy in Italy: An overviewI. Italian antitrust law Competition Law in Italy is set out by Law n° 287 of 10 October 1990 (hereinafter also the “Law”), which regulates restrictive practices, abuses of dominant positions and concentrations, in a manner substantially identical to the European regulation. 1. Restrictive (...) -
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The French Versailles Court of Appeal confirms fines, independently of anticompetitive practice, against the chairman of a company having imposed a minimum resale price of a product (Hinningen & Ste Fravillex)Description of the impugned case The investigation showed that the supplier imposed to some of its clients a minimum ratio on price and threatened of retaliations measures in a case of non respect of it. Moreover, a strict control was also insured directly by the supplier in order to check the (...) -
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A Luxembourg Commercial Court finds several clauses in a franchising agreement to be anticompetitive and null yet upholds the rest of the agreement (Univers du Cuir Belgique / Cuir Center Luxembourg)The undertaking Univers du Cuir Belgique (“UCB”) has taken over the franchising agreement that Belgian Comfort Company (“BCC”) had as a franchisor with Cuir Center Luxembourg (“CCL”), franchisee. UCB noticed that CCL did not respect the non-compete obligations imposed on it by the agreement and (...) -
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The French Competition Authority fines three companies in the small appliance sector for prohibiting their distributors from deducting discounts from their resale price (Moulinex / Calor / Seb)Description of the impugned case In the present case, Moulinex, Calor and Seb had implemented the following commercial policy : discounts for trade cooperation are granted at the end of the year only i) if retailers have not infringed French prohibition on resale at a below-cost price and ii) (...) -
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The French Criminal Supreme Court rules on the first implementations of Art. L. 420-6 C. com. (PFG - Funeral Services of Avignon)Despite the de-penalization of anticompetitive practices, acknowledged by many authors, and implemented by the Order of 1st December 1986, Article L. 420-6 of the French commercial code (the FCC) still states that: « If any natural person fraudulently takes a personal and decisive part in the (...) -
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The French Criminal Supreme Court rules on the first implementations of Art. L. 420-6 C. com. (PFG - Funeral Services of Avignon)Despite the de-penalization of anticompetitive practices, acknowledged by many authors, and implemented by the Order of 1st December 1986, Article L. 420-6of the Commercial Code still states that: “If any natural person fraudulently takes a personal and decisive part in the conception, (...) -
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The Hungarian Competition Authority finds RPM agreement to be anticompetitive (Borsodi Sörgyár)Description of the impugned case The beer distribution agreements by one of the largest beer producers in Hungary with its wholesalers contained a clause whereby the wholesalers were under the obligation to follow the retail price list set by the producer and undertook not to deviate from such (...) -
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The French State Council rejects the direct effect of Art. 87 EC and excludes “automatic” notification to the EU Commission of situations likely to be regarded as State aid (Association “La vache à lait qui refuse de se laisser traire”)This judgment is less known for its contribution in State aid law than because of the title of the applicant. None of its solutions is innovative. But for a long time, the absence of direct effect of ex-Article 92 EC (now Article 87 EC) and the office of the national judge on the basis of (...) -
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The Irish High Court grants a permanent injunction against the plaintiff undertaking who fails to prove that exclusivity clauses in retail contracts breach Art. 81 and 82 EC (Masterfooods / Ice Cream)Facts HB Ice-Cream Ltd., hereinafter HB, was an ice-cream manufacturer in Ireland which exerted considerable market power. HB had concluded contracts with many Irish retailers which included a so-called “exclusivity clause”; this clause stipulated that HB would provide the retailers with (...) -
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The Council of the EU adopts a final package of measures for the liberalisation of the Community’s internal air transport market"Liberalization policy and State aid in the air transport sector"* On 1 January 1993, the third and final package of measures for the liberalization of the Community’s internal air transport market entered into force. This package completes the process of gradual market liberalization which (...) -
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The Irish Supreme Court overturns the High Court’s definition of the term undertaking in order to include organisations whose primary objective goes beyond profit-making (Deane/Voluntary Health Insurance Board)Facts In the present case, the plaintiffs were trustees of a religious order and, in that capacity, owned a private hospital. They initiated a series of actions before the High Court, which were later joined, contesting, inter alia, the inclusion of their hospital in the defendant’s health (...) -
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The US FTC rejects the proposed acquisition of a nonprofit hospital of another area hospital (University Hospital / St Joseph Hospital)The Federal Trade Commission (“FTC”) sought preliminary injunction to prevent defendants University Hospital and St. Joseph Hospital of August, Georgia from consummating a proposed asset acquisition agreement, alleging the proposed merger acquisition would violate Section 7 of the Clayton Act. (...) -
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The Paris Court of Appeal confirms fines against the chairman of a company for having imposed a minimum resale price of a product (Herpin)Description of the impugned case Before the criminal court, an action was introduced in order to condemn the resale price maintenance imposed by a supplier to its clients. Indeed, the investigation showed that the supplier indicated in its general commercials conditions a minimum resale price (...) -
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The French Supreme Administrative Court implements the EU Court of Justice "Saumon" ruling while limiting the time-period of annulment of the un-notified aid (Saumon)The Fédération nationale du commerce extérieur des produits alimentaires and the Syndicat national des négociateurs et transformateurs de saumon brought an action against the interministerial order of 15 april 1985 implementing decree n° 84-1297 of 31 december 1984 imposing parafiscal charges for (...) -
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The US Supreme Court establishes a test for proving the existence of predatory pricing (Brooke Group)Predatory Pricing: Rarely, But Not Never, Successful under US Antitrust Laws* Your much larger competitor sells the same products as you do but at a much lower price, so low you think that it must be losing money on each sale. Can such “predatory pricing” ever violate the antitrust laws? It is a (...) -
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An overview of Swedish competition law and upcoming reformsThe Swedish Competition Act (hereinafter the “Competition Act”) entered into force in connection with Sweden’s accession to the EEA in 1994. It contains provisions that are similar to those laid down in Articles 81 and 82 of the Treaty Establishing the European Community (hereinafter “EC”). In (...) -
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The US Northern District Court of California holds that a price restriction provision that fixed price at which a licensee could make first sale of copyrighted videogames software is not illegal resale price maintenance (LucasArts Entertainment / Humongous Entertainment)In LucasArts Entertainment Co. v. Humongous Entertainment Co. the district court held that price restriction provisions included in a license agreement of copyrighted software were not per se illegal or otherwise anticompetitive because “[t]he right to license a patent or copyright (and to (...) -
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The Paris Court of Appeal considers that the use and implementation by franchisees of the franchisor’s contractual documents has an equal effect to a resale price maintenance practice (CEJIBE)Description of the impugned case In a franchising network, franchisor sent to each franchisee pre-printed and standardized documents including amount of rebates and fixe fees. The appeal Court has considered that diffusion of standards documents was a huge incitation to apply rebates and (...) -
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The French Competition Authority fines a leading video game producer for imposing to its distributors the implementation of recommended resale prices through reminders, surveillance and threats of stopping deliveries (Bandai)Description of the impugned case The present case deals with Bondai’s price maintenance system for its video game console and software (principally the Nintendo one) in France in 1989. Investigations have showed that Bondai has regularly addressed recommended prices to its distributors by (...) -
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The Spanish Supreme Court dismisses the action brought by a number of ship owners against the monopoly in the oil sector for breach of Art. 82 EC (Isidoro Rodríguez)At the time of the facts (late 1980s), Compañía Arrendataria de Monopolio de Petróleos, S.A. (hereinafter, “CAMPSA”), a State-owned company, controlled the oil sector in Spain. Isidoro Rodríguez, S.A., along with other 209 ship owners, brought an action for damages against CAMPSA for breach of (...) -
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The French Criminal Supreme Court confirms criminal sanctions against the CEO of a national copyright-management society for excessive fees (X / SACEM)Despite the de-penalization of anticompetitive practices, acknowledged by many authors, and implemented by the Order of 1st December 1986 (the Order), Article L. 420-6 of the French commercial code (the FCC) still states that : “If any natural person fraudulently takes a personal and decisive (...) -
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The Brussels Commercial Court finds an exclusive distribution agreement contrary to Art. 81 EC but declined the claim for damages (APT-B/Lupac)The facts APT-B is a Belgian company which business consisted in repairing computer hard drives. It entered into an exclusive distribution agreement with LUPAC. On 11 December 1987, APT-B unilaterally terminated the said contract on the ground of alleged contractual failures and claimed for (...) -
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The Paris Administrative Tribunal confirms the principle of restitution for an incompatible State aid following a decision of the EU Commission (Boussac Saint Frères)Between June 1982 and August 1984, the French State granted financial support to Boussac Saint Frères, a company active in the textile and clothing sector. These financial contributions took the form of (i) a participation in the capital of the company by the Institut de développement industriel (...) -
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The French Competition Authority refers for the first time a bid-rigging case to a criminal Court (Bordeaux moving sector)Article L. 420-6, paragraph 1, of the Commercial Code creates the infraction applicable to natural persons having taken part in an anticompetitive practice. This article states: “If any natural person fraudulently takes a personal and decisive part in the conception, organisation or (...) -
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The President of the Brussels Commercial Court rules that resale price maintenance is not illicit if the agreement predates the entry into effect of the Belgian Competition Act and was notified to the Competition Authority (Aniserco/Laroy-Duvo)Description of the impugned case Aniserco exploits a chain of shops specialised in petfoods. Some shops are run by Anserico itself, while others are exploited by franchisees. Laroy-Duvo imports petfoods from the USA and in particular, it imports dog food of the brand Eukanuba and Iams. After (...) -
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The Pennsylvania Attorney General negotiates creative consent decrees that allowed hospital mergers to be consummated subject to conditions (Providence Health System / North Central Pennsylvania Health System)In two hospital merger cases, the Pennsylvania Attorney General negotiated fairly novel and creative consent decrees, which permitted the mergers to be consummated in exchange for the merging parties agreeing to a number of conditions. These conditions included numerous provisions to protect (...) -
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The EU Court of Justice reviews the Antitrust agreement signed between the Commission and the United States and holds that the Commission acted outside its competence to conclude such an agreement"Case 327/91 Judgement of the Court 9 August 1994 Agreement between the Commission and the United States regarding the application of their competition laws"* Pursuant to an action brought by the French Republic on 16 December 1991 under the first paragraph of Article 173 of the EEC Treaty and (...) -
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The EU General Court confirms the Commission’s decision declaring illegal an aid granted by Spain to a textile company (General Textil España - ex Intelhorce)"General Textil España S.A. (GTE)- ex Intelhorce S.A."* In 1992 the Commission took a negative Decision concerning aid to Intelhorce S.A. (currently General Textil España S.A.- GTE), a textile company located in Málaga (Spain - Commission Decision 92/321/EEC, OJ 1992 L 176/57). The company had (...)
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