The learning objectives for this chapter include: Identify anticompetitive behavior under the Clayton Act, discuss FTC and DOJ roles for proposed mergers, describe the three types of price discrimination, explain the antitrust exemptions. | Regulation of Business Administrative Agencies The Federal Trade Commission Act and Consumer Protection Laws Antitrust: The Sherman Act 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Regulation of Business The Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and Immunities Employment Law Environmental Regulation 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. THE CLAYTON ACT, THE ROBINSON– PATMAN ACT, AND ANTITRUST EXEMPTIONS AND IMMUNITIES P A E T R H C 50 “Competition policy is intended to ensure a fair fight, not to punish winners or protect losers.” Carl Shapiro, Information Rules (cowritten with H. Varian, 1999) Learning Objectives Clayton Act: Section 3 Section 7 Section 8 The Robinson-Patman Act Antitrust exceptions and exemptions 50 - Not illegal unless anticompetitive effect is substantial Enforcement of Clayton Act 50 - No criminal penalties and . | Regulation of Business Administrative Agencies The Federal Trade Commission Act and Consumer Protection Laws Antitrust: The Sherman Act 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Regulation of Business The Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and Immunities Employment Law Environmental Regulation 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. THE CLAYTON ACT, THE ROBINSON– PATMAN ACT, AND ANTITRUST EXEMPTIONS AND IMMUNITIES P A E T R H C 50 “Competition policy is intended to ensure a fair fight, not to punish winners or protect losers.” Carl Shapiro, Information Rules (cowritten with H. Varian, 1999) Learning Objectives Clayton Act: Section 3 Section 7 Section 8 The Robinson-Patman Act Antitrust exceptions and exemptions 50 - Not illegal unless anticompetitive effect is substantial Enforcement of Clayton Act 50 - No criminal penalties and private plaintiffs may sue for injunctive relief, treble damages Dept. of Justice and FTC share enforcement of Clayton Act to seek injunctive relief or issue cease and desist orders Congress enacted the Clayton Act to fill perceived weaknesses of the Sherman Act Thus, only a probability of a significant anticompetitive effect is required for most Clayton Act violations Quantitative substantiality test (Standard Oil): Courts look at the dollar amount of commerce involved Qualitative substantiality test (Tampa Electric): Courts examine the area of effective competition (total market for product within competitive region) and percentage of market the agreement covers Meaning of Not Insubstantial 50 - Prohibits two potentially anticompetitive behaviors: Tying agreement: restrains trade by requiring buyer to buy one product (tied product) in order to buy another product (tying product) Exclusive dealing agreements: buyer required to handle seller’s product exclusively or purchase all .
