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Articles Posted in State-Action Immunity

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What are the Available Exemptions to Antitrust Liability?

Author: Jarod Bona Congress and the federal courts have—over time—created several exemptions or immunities to antitrust liability. The US Supreme Court in National Society of Professional Engineers v. United States explained that “The Sherman Act reflects a legislative judgment that ultimately competition will produce not only lower prices, but also…

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Antitrust Group Boycotts: My Competitors are Conspiring Against Me

Author: Jarod Bona Do you feel paranoid? Maybe everyone really is conspiring against you? If they are competitors with each other—that is, if they have a horizontal relationship—they may even be committing a per se antitrust violation. A group boycott occurs when two or more persons or entities conspire to…

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State Action Immunity and Active Supervision: The Ninth Circuit Rejects the Board’s Claim for Immunity and SmileDirectClub Wins Again

Author: Luis Blanquez Just weeks before our ABA antitrust panel on State Action Immunity takes place in Washington DC, the Ninth Circuit Court of Appeals has allowed SmileDirectClub to proceed against the members of the California Dental Board for antitrust violations, rejecting the board’s immunity claim on active supervision grounds.…

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Join Me at the ABA Antitrust Law Spring Meeting for a Discussion on the New Standard Under Phoebe Putney and the Market Participant Exception to State Action Immunity

Author: Luis Blanquez It is time again for the ABA Antitrust Spring Meeting. In my case, this year is particularly special for two reasons. First, because the meeting is live. While the Zoom meetings have been extremely helpful, I think we (almost) all agree—online conferences just aren’t the same as…

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Clear Articulation and the Classic Antitrust Case of FTC v. Phoebe Putney Health System

Authors: Luke Hasskamp and Aaron Gott This article briefly explores the applicability of federal antitrust laws to actions taken by municipalities or other state subdivisions and, specifically, whether they have acted pursuant to a clearly articulated state policy to displace competition in the marketplace. Federal antitrust laws are designed to…

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SmileDirectClub, Dental Boards, and State-Action Immunity: DOJ Antitrust Division Argues a Court Wasn’t Tough Enough on a State Dental Board

Author: Luis Blanquez When someone new enters a market with a different or better idea or way of doing business, existing competitors must also innovate, lower their price, or otherwise improve their offerings to maintain their position in the market. That is why competition is good for consumers. But sometimes…

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Antitrust News: The Eleventh Circuit Agrees that the Supreme Court’s Phoebe Putney Decision Really Did Change the State-Action-Immunity Test from the Earlier Hallie and Omni Decisions

Author: Luis Blanquez The Eleventh Circuit recently rejected the City of LaGrange’s attempt to assert state-action immunity from antitrust liability in Diverse Power, Inc. v. City of Lagrange, 2019 U.S. App. LEXIS 24772 (11th Cir. Ga., Aug. 20, 2019). And here is why. In a nutshell, the City of LaGrange…

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The Amicus Brief is an Important Advocacy Tool for Both the Federal Trade Commission and the Department of Justice in State-Action Immunity Cases

Author: Luis Blanquez We’ve discussed the state action doctrine many times in the past. The courts have interpreted the federal antitrust laws as providing a limited exemption from the antitrust laws for certain state and local government conduct. This is known as state-action immunity. In this article, we will discuss…

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How a Municipality Can Get Rich at the Expense of Competition and What We Should Do About it

Author: Jarod Bona Selling a product or service when there is little to no competition is a great way to get rich. An economist might call some of those profits “monopoly rents.” With less or no competition, the amount supplied usually diminishes and the price goes up. The purchasers in…

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Applying the Antitrust Laws to Anticompetitive State and Local Government Conduct

Author: Jarod Bona Lawyers, judges, economists, law professors, policy-makers, business leaders, trade-association officials, students, juries, and the readers of this blog combined spend incredible resources—time, money, or both—analyzing whether certain actions or agreements are anticompetitive or violate the antitrust laws. While superficially surprising, upon deeper reflection it makes sense because…