Key Terms
Supporting law
Robinson-Patman Act (1936)
Free enterprise
A private, consensual system of production and distribution, conducted for profit in a competitive environment, relative
Result
Competitors outside the trust went bankrupt; new competitors couldn't enter; consumer prices rose artificially.
Monopoly
The control or advantage obtained by one supplier or producer over the commercial market within a given region.
Monopoly power
The power of a business to fix prices unilaterally or to exclude competition.
Same strategy applies
Defendants want broad geography, plaintiffs want narrow.
Three elements of intent to monopolize
1. Predatory or anticompetitive conduct 2.
Evidence of intent includes
Purchasing smaller competitors to grow market share; engaging in predatory pricing.
Context matters
Courts evaluate intent against current economic and industry conditions. Surviving a downturn alone doesn't prove intent
Restraint on trade
An agreement between two or more businesses intended to eliminate competition, create a monopoly, artificially raise pri
Unreasonable restraint on trade
A restraint that produces a significant anticompetitive effect and therefore violates antitrust laws.
Concerted action
An action planned, arranged, and agreed on by parties acting together to further some scheme or cause.
HORIZONTAL agreements
Between direct competitors.
VERTICAL agreements
Between businesses at different levels of the distribution chain (e.g., manufacturer to wholesaler).
Price fixing
The artificial setting or maintaining of prices at a certain level, contrary to the free market.