The Supreme Court Rejects the “Price Squeeze” Theory of Illegal Monopolization
Today, the Supreme Court rejected the "price squeeze" theory of liability under Section 2 of the Sherman Act. First established in Judge Learned Hand's famous Alcoa decision, the "price squeeze" theory permitted recovery against vertically integrated companies that raised wholesale prices to their retail competitors while simultaneously lowering prices for their own, competing retail goods. The Court led that, absent a showing of predatory pricing, companies with no antitrust duty to deal have no obligation to sell their products to competitors in a manner that preserves their rivals' profit margins. To read the full Report, please click
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