Market power in vertical cases

Article Abstract:

The Federal Trade Commission and the courts may base their analysis of vertical nonprice restraints to a substantial degree on the degree of market power present. The US Supreme Court, in its stress on interbrand competition, has used the rule of thumb that if the defendant does not have market power, the plaintiff does not succeed. They reason that if a defendant lacks market power, consumers are free to move to interbrand competition. The market power analysis can also be used in exclusive dealing arrangements and tying agreements.

Unfair competition (Commerce), Unfair competition, Vertical integration, Market share

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The boundaries of horizontal restraints: facilitating practices and invitations to collude

Article Abstract:

A finding of restraint of trade by horizontal agreement involves invitations to collude or facilitating practices. The attitude of the FTC on collusion invitations is illustrated by the enforcement case of Quality Trailer Products, No. 911-0068, Aug 6, 1992. The attitude of the FTC on facilitating practices is illustrated by the enforcement cases over infant formula against Mead Johnson, Abbott Laboratories and American Home Products files on Jun 10, 1992.

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Communication and cooperation among competitors: introduction and overview

Article Abstract:

Antitrust analysis of horizontal arrangements involves basic questions when using either the rule of reason or per se analysis. One question is, what makes an agreement, or, who has agreed to do what? Another question considers what constitutes unreasonable restraint of trade. Per se and rule of reason analysis now fit on a spectrum, with more justification needed for per se.

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