Antitrust 1 Prof. E. Fox Fall 2004 1 I. Introduction to Antitrust Law 4 a. General Background 4

§2 explicitly prohibits acts of monopolization

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§2 explicitly prohibits acts of monopolization

  • Rule of Reason “Reasonableness” Standard for §1 Analysis

  • Focus on effect b/c it is hard to determine actual intent

  • Purpose of the Sherman Act was to prevent high concentration of wealth among the few; only unreasonable restraints are prohibited by the holding BUT all restraints should be prohibited
      1. Aftermath of Standard Oil

  • Unclear whether Trans Missouri was overruled (implies that a Rule of Reason analysis should be conducted for every antitrust case); Trans Missouri is still applied where price fixing is at issue b/c price fixing is per se illegal

  • Dispute b/t CJ. White and J. Harlan is in parallel to the opposition b/t JJ. Scalia and Douglas – the former suggest that the market will work to protect the interests of the public, whereas the latter believe that the antitrust laws are intended to protect the public from self-interested individuals/corporations

  • Wilson’s legislative record

  • Clayton Act and FTC Act meant to limit judicial discretion under the Rule of Reason

  • U.S. Steel Corp. (1920) – rejects that “size” and “productive power” should be equated to power to raise prices  no presumption of avarice

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