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

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Full Rule of Reason Analysis

  • NCAA v. Univ. of Oklahoma (1984)

  • Arrangement is a priori anti-competitive, but allows for an escape valve b/c existence of industry practice or rationale warrants some form of horizontal restraints if the product to be produced at all (availability of television vs. ticket sales)

  • California Dental Assoc. (1999)

  • J. Souter – questioned the a priori presumption of anti-competitive behavior on the part of the cartel-like behavior by proof of the arrangement; a more sedulous look is necessary b/c the price and non-price restraints are not strictly anticompetitive

  • Reviews justifications – preventing fraudulent advertising has pro-competitive effect (inaccurate information is anticompetitive); however, assessment of competitiveness s/n rely on truthfulness; FTC must present empirical evidence that the restraints would raise prices and decrease output (new requirement)  increased burden on π

  • J. Breyer dissent – would have found price restraints as illegal under the quick-look analysis (Indiana Fed. Dentists), but the non-price restraints as worthy of a full rule of reason analysis

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