antitrust please leave the back row and the aisle seats empty. music: isaac albeniz, works for piano...
TRANSCRIPT
ANTITRUST• Please leave the back row and the aisle
seats empty.• Music: Isaac Albeniz, Works for Piano
(1889-1909)– Performed by Alicia de Larrocha (1959)
• Today’s Class:1. Introduction to the Course
2. Introduction to the Antitrust Laws
1. Introduction to the Course
a) Generally: Monopoly Stories v. Competition Stories
b) Mechanics
c) Themes
1. Introduction to the Course
a) Generally: Comp. Stories v. Monopoly Stories
b) Mechanics: Classroom & Preparationi. Class Meetings & Attendance
ii. Course Page
iii. Reading
iv. Lectures
c) Themes
1. Introduction to the Course
a) Generally: Comp. Stories v. Monopoly Stories
b) Mechanics: Graded Worki. Project
ii. Exam
c) Themes
1. Introduction to the Course
a) Generally: Comp. Stories v. Monopoly Stories
b) Mechanics: Review & Exam Prepi. Review Problems
ii. Self-Quizzes
iii. Old Exams
c) Themes
1. Introduction to the Course
a) Generally: Comp. Stories v. Monopoly Stories
b) Mechanics:
c) Themes
HISTORICAL TRENDS
• 1945-75: Anti-Big Business Ideology
• 1975-92: “Antitrust Revolution”
• 1992-2000: Line-Drawing and Some Counter-Revolution
• 2001-08: Furthering the Revolution
THEMES OF THIS COURSE
1. Power of Attorneys & Legal Academics to Change the Law
2. Use of Economics in Legal Argument
THEMES OF THIS COURSE
1. Power of Attorneys & Legal Academics to Change the Law
2. Use of Economics in Legal Argument
3. Conducting Complex Civil Litigation
THEMES OF THIS COURSE
1. Power of Attorneys & Legal Academics to Change the Law
2. Use of Economics in Legal Argument
3. Conducting Complex Civil Litigation
ATTORNEYS MATTER A LOT
2. Introduction to the Antitrust Laws
a) Passage of the Statutesi. Text of the Sherman Act
ii. Background to Passage: US in 1890
iii. Passage of the Clayton Act & FTC Act
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony…
15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract,
combination … or conspiracy, in restraint of trade … is declared to be illegal.
15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony….
15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to monopolize … shall be deemed guilty of a felony….
15 USC §1. Trusts, etc., in restraint of trade illegal; penalty. Every contract,
combination … or conspiracy, in restraint of trade … is declared to be illegal.
= Thou Shalt Not Do Bad
Things in Groups
15 USC §2. Monopolizing trade a felony; penalty. Every person who shall monopolize, or attempt to
monopolize … shall be deemed guilty of a felony….
= Thou Shalt Not Do Bad
Things Alone
2. Introduction to the Antitrust Laws
a) Passage of the Statutesi. Text of the Sherman Act
ii. Background to Passage: A. US in 1890: End of the Frontier
B. Productivity Gains & Business Cycles
C. Stated Purposes of Sherman Act
iii. Passage of the Clayton Act & FTC Act
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
1890: Seeds of the Modern World
End of the Frontier
• Oklahoma Territory Created
• Idaho & Wyoming Admitted to Union
• Battle of Wounded Knee in S.Dakota; Sitting Bull killed;
• Cattlemen & sheepherders begin fighting b/c of lack of range space
Transportation
• US has 125,000 miles of RR in operation
• First electric underground railway opens in London
• Around the World in 72 Days
Introduced in 1890
• Aluminum saucepan
• Army-Navy football
• Corrugated cardboard box
• Daimler Motorworks
• Emily Dickinson’s Poems
• EverReady Batteries
• Electric chair
• Peanut butter
• Poll Tax and Literacy Tests
• Rock Creek Park, Yosemite & Sequoia Nat’l Parks
• Sunoco
• Tetanus & Diptheria Antitoxins
• US Weather Bureau
• Cy Young
Died in 1890: Vincent Van Gogh
Born in 1890• Agatha Christie
• Charles deGaulle
• Marjory Stoneman Douglas
• Dwight David Eisenhower
• Rose Fitzgerald Kennedy
• Groucho Marx
• Ho Chi Minh
2. Introduction to the Antitrust Laws
a) Passage of the Statutesi. Text of the Sherman Act
ii. Background to Passage: A. US in 1890: End of the Frontier
B. Productivity Gains & Business Cycles
C. Stated Purposes of Sherman Act
iii. Passage of the Clayton Act & FTC Act
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
2. Introduction to the Antitrust Laws
a) Passage of the Statutesi. Text of the Sherman Act
ii. Background to Passage: A. US in 1890: End of the Frontier
B. Productivity Gains & Business Cycles
C. Stated Purposes of Sherman Act
iii. Passage of the Clayton Act & FTC Act
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
Stated Purposes of the Sherman Act
• stop theft (high prices)
• break power of trusts: better off w small businesses
• federalize common law of competition
Stated Purposes of the Sherman Act
• stop theft (high prices)
• break power of trusts: better off w small businesses
• federalize common law of competition
• Some see as empty political move
2. Introduction to the Antitrust Laws
a) Passage of the Statutesi. Text of the Sherman Act
ii. Background to Passage: US in 1890
iii. 1914: Passage of the Clayton Act & FTC Act
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
Clayton Act: Key Language
…where … the effect … may be substantially to lessen competition, or to tend to create a monopoly.
2. Introduction to the Antitrust Laws
a) Passage of the Statutes
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History
HORIZONTAL RESTRAINTSHORIZONTAL RESTRAINTS
• PRICE-FIXING
• MARKET DIVISION
• CONCERTED REFUSALS TO DEAL (BOYCOTTS)
HORIZONTAL RESTRAINTSHORIZONTAL RESTRAINTS
• PRICE-FIXING
• MARKET DIVISION
• CONCERTED REFUSALS TO DEAL
HORIZONTAL RESTRAINTSHORIZONTAL RESTRAINTS
• PRICE-FIXING
• MARKET DIVISION
• CONCERTED REFUSALS TO DEAL
HORIZONTAL RESTRAINTSHORIZONTAL RESTRAINTS
• PRICE-FIXING
• MARKET DIVISION
• CONCERTED REFUSALS TO DEAL– NAKED BOYCOTT
– JOINT VENTURES
ABUSE OF DOMINANT ABUSE OF DOMINANT POSITIONPOSITION
• (ATTEMPTED) MONOPOLIZATION– MARKET POWER
– CONDUCT
• TYING
2. Introduction to the Antitrust Laws
a) Passage of the Statutes
b) Practices/Concepts Covered by the Course
c) Enforcement: Goals & Brief History