12.1 Chapter 12 Antitrust © 2003 by West Legal Studies in Business/A Division of Thomson Learning

12.2 Foundations of Antitrust Law  Traditional market structures  Perfect competition  Monopoly  Oligopoly  Monopolistic competition  Monopsony  Oligopsony

12.3 Foundations of Antitrust Law  Network effects and antitrust  IP opposition to antitrust  Ideas and intangibles, not products  Law of diminishing returns  Economies of scale  Availability of substitutes  First mover advantage  High switching costs

12.4 The Primary Antitrust Laws  Sherman Act  Clayton Act  Federal Trade Commission Act  Robinson-Patman Act  Celler-Kefauver Amendment  Hart-Scott-Rodino Antitrust Improvement Act  Tunney Act

12.5 Antitrust Enforcement  Criminal penalties  Private rights of action  Civil regulatory remedies  International antitrust enforcement

12.6 Antitrust Exemption  Agricultural cooperatives are exempted by the Clayton Act.  Farmers, planters, ranchmen, dairymen, or nut and fruit growers  Labor union activities that pursue their members' benefit  State actions  Insurance and stock exchanges  Baseball, although not other professional sports.  Bona fide political activities

12.7 Monopolies  Monopoly power  Relevant market  Market share  Monopolization  Attempts to monopolize  Predatory pricing  Conspiracy to monopolize

12.8 Types of Mergers and Combinations  Mergers  Consolidations  Acquisitions  Purchase of assets

12.9 Horizontal Merger Analysis Raw material processor or parts supplier Manufacturer Retailer 1 - A 2 - A 3 - A 1 - B 2 - B 3 - B

12.10 Vertical Merger Analysis Raw material processor or parts supplier Manufacturer Retailer 1 - A 2 - A 3 - A 1 - B 2 - B 3 - B

12.11 Conglomerate Merger Analysis Raw material processor or parts supplier Manufacturer Retailer 1 - A 2 - A 3 - A 1 - B 2 - B 3 - B

12.12 Merger Defenses  Greater efficiency  Failing firm  Stock purchased for investment

12.13 Horizontal Combinations, Restraints of Trade  Rule of Reason  Per se violations  Joint ventures  Proof of an illegal agreement or combination

12.14 Vertical Restraints of Trade  Vertical price restraint  Vertical nonprice restraints  Exclusive dealing  Customer and territorial restrictions  Dealer terminations  Tying

12.15 Antitrust and Intellectual Property Rights  Intellectual property misuse  Essential facilities doctrine  Licensing and antitrust

12.16 Price Discrimination  Proof of price discrimination  Competitive injuries from price discrimination  Price discrimination defenses  Indirect concessions

12.17 Questions & Discussion