Law Commons^™

Antitrust In Digital Markets, John M. Newman

Vanderbilt Law Review

Antitrust law has largely failed to address the challenges posed by digital markets. At the turn of the millennium, the antitrust enterprise engaged in intense debate over whether antitrust doctrine, much of it developed during a bygone era of smokestack industries, could or should evolve to address digital markets. Eventually, a consensus emerged: although the basic doctrine is supple enough to apply to new technologies, courts and enforcers should adopt a defendant-friendly, hands-off approach.

But this pro-defendant position is deeply-and dangerously-flawed. Economic theory, empirical research, and extant judicial and regulatory authority all contradict the prevailing views regarding power, conduct, and …

The Commensurability Myth In Antitrust, Rebecca H. Allensworth

Vanderbilt Law Review

Modern antitrust law pursues a seemingly unitary goal: competition. In fact, competition-whether defined as a process or as a set of outcomes associated with competitive markets-is multifaceted. What are offered in antitrust cases as procompetitive and anticompetitive effects are typically qualitatively different, and trading them off is as much an exercise in judgment as mathematics. But despite the inevitability of value judgments in antitrust cases, courts have perpetuated a commensurability myth, claiming to evaluate "net" competitive effect as if the pros and cons of a restraint of trade are in the same unit of measure. The myth is attractive to …

Merging In The Shadow Of The Law: The Case For Consistent Judicial Efficiency Analysis, Jamie H. Moffitt

Vanderbilt Law Review

This Article examines current judicial interpretation of Section 7 of the Clayton Act through the lens of negotiation theory. The research exposes a gap between how courts state they are analyzing efficiency claims in Section 7 Clayton Act enforcement actions and what they are actually doing. During periods of lax antitrust enforcement, this pattern is not readily visible, since almost all proposed merger and acquisition ("M&A") deals are approved. With a shift to more aggressive antitrust policy, however, it is critical that merger review include appropriate weighing of transaction-generated efficiencies-something missing from courts' current antitrust analysis. Although only a small …

Lowering The Filed Tariff Shield: Judicial Enforcement For A Deregulatory Era, Jim Rossi

Vanderbilt Law Review

The filed tariff doctrine, fashioned by courts to protect consumers from rate discrimination, has strayed from its origins. Instead of protecting consumers, the doctrine has evolved into a shield for regulated firms against common law and antitrust claims that reinforce market norms. In the ideal world, Congress would expand the jurisdiction of regulatory agencies to allow them to penalize private misconduct. However, since that has not always happened, the filed tariff doctrine has encouraged private firms to expend resources in using the regulator as a strategy to immunize conduct from antitrust and common law antitrust claims.

This Article assesses how …

Resolving The Patent-Antitrust Paradox Through Tripartite Innovation, Michael A. Carrier

Vanderbilt Law Review

The issues presented by-the intersection of the patent system and the antitrust laws have never been as pressing as they are today. The number of issued patents is skyrocketing. Companies are more frequently entering into arrangements with competitors not only to recover their investment from creating patented products but also to avoid the patent landmines that line the path of innovation. They form patent pools for laser eye surgery, MPEG-2 video compression technology, and DVD formatting; enter into alliances, mergers, and settlements in the biopharmaceutical industry; refuse to license their patented products in various industries; and cross-license their patents in …

The Use Of The Nonprofit "Defense" Under Section 7 Of The Clayton Act, Amanda J. Vaughn

Vanderbilt Law Review

Since the early 1980s, for-profit and nonprofit hospitals have undergone an unprecedented number of mergers,' reflecting the dramatic changes in the health care industry. The Federal Trade Commission ("FTC") and Department of Justice ("DOJ") have challenged mergers of both types of hospitals. Recently, however, a handful of nonprofit hospitals have offered nonprofit status as a "defense" to federal challenges to nonprofit hospital mergers. Although not a complete defense-nonprofit status alone does not remove the entity from antitrust scrutiny-a limited "defense" has evolved as nonprofit hospitals claim that a nonprofit merger is less likely to have anti- competitive effects than an …

Albrecht After Arco: Maximum Resale Price Fixing Moves Toward The Rule Of Reason, Roger D. Blair, Gordon L. Lang

Vanderbilt Law Review

For some time, both economic and legal commentators have recognized the economic irrationality of the Supreme Court's ruling in Albrecht v. Herald Co. which prohibited the imposition of maximum resale prices by a supplier on its resellers. Ordinarily, unwise decisions receive critical reviews and eventually lose their force as they are over-ruled explicitly or by implication in subsequent decisions. In order for this evolution to occur, however, the Court must be presented with an opportunity to alter its earlier rulings. Recently, the Supreme Court had just such an opportunity to revisit the Albrecht rule in Atlantic Richfield Co. v. USA …

Retracing The Antitrust Roots Of Section 1972 Of The Bank Holding Company Act, Daniel Aronowitz

Vanderbilt Law Review

In 1956 Congress enacted the Bank Holding Company Act' (BHCA) to provide safeguards against undue concentration in the control of banking activities. Congress intended the regulations to protect the economy from anticompetitive combinations of banking and non- banking enterprises held under singular control. Still concerned with the faded "line" between banking and commerce, in 1970 Congress in- creased the scope' of the BHCA with a series of amendments, including an anti-tying provision.

Specifically, 12 U.S.C. section 1972 prohibits anticompetitive practices that "require bank customers to accept or provide some other service or product or refrain from dealing with other parties" …

Franchising And The Collective Rights Of Franchisees, Robert W. Emerson

Vanderbilt Law Review

Assume that you are the franchisee of a nationwide restaurant chain. Your franchisor has acted contrary to what you believe to be in your best interest. For the franchisor, bigger is better: more outlets and discount programs mean higher sales volume and consequently additional franchise fees and royalties, with royalties typically being based on gross sales-not franchisee net profits. You are concerned that the franchisor is oriented more toward expansion than the well-being of existing franchisees. Franchisor assistance is less than you expected, but royalties and other charges seem steep.Facing a strong franchisor that appears not to worry about an …

Rethinking Antitrust Injury, Roger D. Blair, Jeffrey L. Harrison

Vanderbilt Law Review

Substantive changes in antitrust law since 1977 have had a dramatic impact on the vitality of antitrust enforcement.' Recent "procedural" changes now seem likely to have as great an influence. In the procedural area, the emphasis has been on antitrust standing and anti-trust injury. As a result of recent judicial interpretations of these requirements, antitrust plaintiffs face increasingly formidable hurdles. As courts focus on questions of standing and injury, important discussions about whether a practice should be held to a per se or rule of reason standards frequently are immaterial. If there is no qualified plaintiff,the substantive issue need never …

The Antitrust State-Action Doctrine After Fisher V. Berkeley, Daniel J. Gifford

Vanderbilt Law Review

In February 1986 the United States Supreme Court in Fisher v. Berkeley' upheld the validity of a municipal rent control ordinance against a contention that the Sherman Act preempted the ordinance. In an eight-to-one decision, the Court effectively gave the coup de grace to its earlier attempt to apply the federal antitrust laws to municipalities and political subdivisions. It also may have finally ended the remarkable series of disingenuous state-action decisions that had become an almost regular part of the Court's calendar since Goldfarb v. Virginia State Bar' in 1975.Fisher holds a promise of restoring to the state-action exemption a …

Antitrust Comes Full Circle: The Return To The Cartelization Standard, Nolan E. Clark

Vanderbilt Law Review

Antitrust law has been with us since 1890, the year that Congress passed the Sherman Antitrust Act. In the course of this ex-tended period, antitrust law has achieved an exalted status in the pantheon of American jurisprudence.' Nevertheless, for decades,Sherman Act doctrines have been murky and confused. This confusion was not, however, historically inevitable. When enacted, the Sherman Act had a clear focus. Fortunately, as the Sherman Act approaches its centennial, the Supreme Court has given encouraging signs that it is once again returning to the original focus of the statute.

As originally conceived, the Sherman Act prohibited two related …

Rule 10b-5-Application Of The In Pari Delicto Defense In Suits Brought Against Securities Brokers By Customers Who Have Traded On Inside Information, Mark G. Strauch

Vanderbilt Law Review

This Note advocates that courts should permit tipper defendants to assert the in pari delicto defense in private 10b-5 cases against tippee plaintiffs unless one of the first three exceptions to the analytical framework applies. Part II of this Note discusses the purpose and application of the in pari delicto defense and the four situations in which courts have rejected it. Part II also illustrate show courts analyze the in pari delicto defense in contract, anti-trust, and non-10b-5 securities cases. Part III provides a general background on the purpose of the Securities and Exchange Act of 1934 and rule 10b-5, …

Blanket Licensing Of Music Performing Rights: Possible Solutions To The Copyright-Antitrust Conflict, Mary K. Kennedy

Vanderbilt Law Review

This Recent Development compares Buffalo Broadcasting with other blanket licensing decisions and predicts the reversal of Buffalo Broadcasting on appeal. Part II of this Recent Development discusses the organization and operation of the performing rights societies. Part III focuses on the pertinent antitrust principles and the history of antitrust litigation between the performing rights societies and various licensees. Part IV examines recent decisions addressing blanket licenses in which courts have used similar analyses yet reached differing results. Part V analyzes possible solutions to the conflict between antitrust and copyright laws in the blanket licensing context and concludes that resolution of …

Municipalities And The Antitrust Laws: Home Rule Authority Is Insufficient To Ensure State Action Immunity, David J. White

Vanderbilt Law Review

This Recent Development first considers the evolution of the Parker doctrine in a variety of contexts-with special attention to the Supreme Court's decision in Lafayette and the Court's rationale in Boulder. After discussing the recent lower federal court decisions that based the availability of the Parker exemption upon the existence of general home rule authority under the respective state's constitution, this Recent Development examines the problems posed by the Boulder decision for cities and states contemplating economic regulation tailored to particular local concerns. This Recent Development then analyzes the competing policy interests in the question of a home rule municipality's …

Contribution Among Antitrust Defendants, Jane G. Parks

Vanderbilt Law Review

This Recent Development argues that no single federal common law rule of contribution exists and that federal securities law decisions provide the best analogy from which to imply a right of contribution under the antitrust laws. Thus, the Recent Development proposes that the Supreme Court should fashion a rule permitting contribution among antitrust defendants.

A Simplified Approach To Tying Arrangements: A Legal And Economic Analysis, Joseph P. Bauer

Vanderbilt Law Review

This Article will first examine the legal and economic theories applicable to tying arrangements. The Article will then examine the present confused state of the law, and will conclude by proposing a simplified test for evaluating future conduct. The Supreme Court has stated that "tying arrangements serve hardly any purpose beyond the suppression of competition."' If this is true, there is no logical justification for the two separate steps of the analysis, distinguishing the "existence" and "liability" issues; therefore, it is proposed that they be combined. In determining whether there is a tie,it may be relevant to determine whether the …

There Is A Fountain: The Autobiography Of A Civil Rights Lawyer / Legal Regulation Of The Competitive Process, Leonard B. Boudin, Kenneth B. Germain

Vanderbilt Law Review

There is a Fountain: The Autobiography of a Civil Rights Lawyer Reviewed by Leonard B. Boudin --

This book is unlike other good legal autobiographies, such as those of D.N. Pritt,' Clarence Darrow, and more recently Charles Morgan," for Lynn throughout his life was very poor, a radical and,most importantly, Black. Those portions of his autobiography that recount his political life in college and in later years make exciting and important reading. Lynn was the only member of the Young Communist League at Syracuse University in the early 1930s, and was a member of the American Communist Party in his …

Relative Value Guides And The Sherman Antitrust Act, David R. Simonsen, Jr.

Vanderbilt Law Review

The skyrocketing costs of health care services for the American people constitute a crisis of national importance.' The seriousness of this crisis is reflected in the attention that antitrust enforcement agencies of the federal government are giving to the health care industry. The agencies are responding, at least in part, to the common perception that these skyrocketing costs result as much from the restrictive trade practices of the health care industry as from the growing use of sophisticated technology and inflation. Competition is viewed as an antidote to increasing prices and antitrust laws as the vehicle by which federal agencies …

Antitrust Enforcement, Freedom Of The Press, And The "Open Market": The Supreme Court On The Structure And Conduct Of Mass Media, William E. Lee

Vanderbilt Law Review

This Article examines the Supreme Court's attempts to foster open markets by altering either the structure or the conduct of mass media enterprises." Structure and conduct are the two main determinants of market performance. Market structure "means those characteristics of the organization of a market that seem to exercise a strategic influence on the nature of competition and pricing within the market." Some characteristics of market structure include degree of buyer concentration, degree of seller concentration, degree of product differentiation, and entry conditions. Market conduct, on the other hand, comprises the practices, policies, and devices which firms employ in adjusting …

Decision To Prosecute: Organization And Public Policy In The Antitrust Division, C. Paul Rogers, Iii

Vanderbilt Law Review

Professor Suzanne Weaver's first book, Decision To Prosecute: Organization and Public Policy in the Antitrust Division, is a study of the Antitrust Division of the Department of Justice, its institutional behavior and its mechanisms for public policy formation.Although Professor Weaver's audience is not limited to the legal community, Decision To Prosecute will stimulate in two ways the interest of antitrust students, scholars, and practitioners. On one level, the reader will learn something about the internal operations of the Antitrust Division, and may reconsider his preformed judgments about that influential, trenchant branch of the Justice Department.

Denial Of Standing To Private,Noncommercial Consumers Under Section 4 Of The Clayton Act, David L. O'Daniel

Vanderbilt Law Review

The Sherman Act and the Clayton Act are efforts by Congress to promote a free and competitive economy and to compensate those injured by anticompetitive activities. To supplement government enforcement, section 7 of the Sherman Act provided a means of combating antitrust violations through private treble damage actions. Section 4 of the Clayton Act, which superseded section 7 of the Sherman Act with only slight modification, provides for treble damage actions by "any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws"....

In light of the uncertainty regarding private consumer …

Book Reviews, George A. Hay, H. Michael Mann, Teresa Amott

Vanderbilt Law Review

Book Reviews:

The Antitrust Penalties: A Study in Law and Economics By Kenneth G. Elzinga and William Breit

Reviewed by George A. Hay

The Antitrust Penalties was published in 1976. Its main mes-sage is that the only efficient antitrust penalty is a heavy fine and that incarceration comes out poorly by any benefit-cost standard.Later that year, in a celebrated and possibly unprecedented appearance, newly appointed Assistant Attorney General Donald I. Baker argued before a federal district judge that jail sentences were the appropriate penalty for a group of defendants who had just been convicted in one of the major price-fixing …

Antitrust Consequences Of United States Corporate Payments To Foreign Officials, James F. Rill, Richard L. Frank

Vanderbilt Law Review

This Article examines the feasibility and desirability of marshalling section 2(c)' of the Clayton Act as amended by the Robinson-Patman Act and sections 1 and 2 of the Sherman Act against a practice having deep legal, political, and emotional significance in the United States and overseas. Difficult questions of jurisdiction and coverage are presented, as are major issues of public policy on what the role, if any, should be for these provisions.

Recent Cases, Samuel E. Stumpf, Jr., M. Carolyn Barefield, Robert S. Reder, Stephen C. Morton, Randolph C. Coley

Vanderbilt Law Review

Noerr-Pennington Immunity for Joint Efforts to Influence Governmental Action - Intent to Cause Competitive Injury, Evidenced by Repeated, Baseless Opposition Before an Adjudicatory Body, Does Not Result in Loss of Noerr-Pennington Immunity Absent Specific Allegations of Conduct External to or Abusive of the Adjutory Processes

Samuel E. Stumpf, Jr.

Constitutional Law - First Amendment - Student's Right to Receive Information Precludes Board's Removal of Allegedly Offensive Books from High School Library

M. Carolyn Barefield

Constitutional Law-Search and Seizure - Federal Courts Are Bound by Federal Wiretapping Statutes and Will Not Exclude Evidence Seized by State Agents in Violation of More …

Special Project, Kenneth Harmon, Barbara Moss, W. Patrick Mulloy, Ii, Robert H. Brownlee, Walter T. Eccard, Michael D. Kelly, Timothy C. Maguire, Richard M. Pitt, Stephen K. Rush, Robert D. Tuke, Richard C. Stark Special Project Editor

Vanderbilt Law Review

The One Hundred and First Justice: An Analysis of the Opinions of Justice John Paul Stevens, Sitting as Judge on the Seventh Circuit Court of Appeals

This article will examine the opinions written by Mr. Justice Stevens while he served on the Court of Appeals for the Seventh Circuit. The areas examined are constitutional, antitrust, labor, securities, federal tax, administrative, and federal jurisdictional law. This article also will seek to reach some conclusions on Stevens' position in the several areas while he served on the Seventh Circuit and to suggest the factors he may consider important in deciding cases in …

Recent Cases, Richard C. Stark, Gerard T. Nebel, Craig V. Gabbert, Jr., Mary E. Mann

Vanderbilt Law Review

Recent Cases

Administrative Law--Federal Trade Commission Act--Restitution Held Improper in Section Five Cease and Desist Order

Richard C. Stark

Congress enacted section five'° of the Federal Trade Commission Act in 1914 to supplement" the antitrust provisions of the Sherman Act.'" The section declared unfair methods of competition illegal and placed the power to define and prohibit unfair methods in the hands of an independent regulatory commission, the FTC.' In conferring this power, Congress intended this body of experts to educate and guide the business community toward the goal of securing higher standards of business conduct.

Sherman Act, antitrust

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Constitutional …

Book Reviews, Arthur D. Austin, John N. Hazard

Vanderbilt Law Review

The Case Against Oligopoly: A New Perspective--

Campaigns of corporate aggrandizement have always attracted a wide assortment of camp followers, with politicians and academics among the most persistent. To the politician, corporate size is a convenient and headline-provoking punching bag (and, during election time, a plentiful source of funding), while many a professor has established a reputation--and made money--by criticizing, extolling, or analyzing its various components. In a series of public hearings, the Senate Subcommittee on Antitrust and Monopoly, with Dr. John Blair as chief economist, produced a subdued blend of both callings. Drawing heavily but not exclusively from the …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Antitrust--Horizontal Territorial Restraint--Allocation of Territories Among Members of Cooperative Purchasing Association Is Per Se Violative of Section 1 of the Sherman Act

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Antitrust--Robinson--Patman Price Discrimination Act--Complaint Charging That Profits Derived from Interstate Sales Were Used To Underwrite Allegedly Discriminatory Intrastate Price-Cutting Practices States a Cause of Action Under Section 2(a)

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Bankruptcy--Corporate Reorganization-Trustee in Reorganization Lacks Standing To Sue Indenture Trustee on Behalf of Debenture Holders

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Constitutional Law--Commerce Clause--Exactions on Airport Users by Local Governments Measured by Number of Enplaning Passengers Are Constitutionally Valid

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Constitutional Law--Right to Speedy Trial--State-Imposed Five-Year Delay Does Not Abridge Right to Speedy …

Recent Cases, Law Review Staff

Vanderbilt Law Review

RECENT CASES

Antitrust--Sham Exception--Allegations of Purposeful and Concerted Use of Adjudicatory Processes to Harass and Deter Parties From Having Free Access to These Processes Constitute a Cause of Action Under Antitrust Laws

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Criminal Procedure--Confessions--Determination of Confession's Voluntariness by Preponderance of the Evidence Is Not Violative of Fifth Amendment Prohibition Against Self-Incrimination

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Landlord and Tenant--Forcible Entry and Detainer Statute--Provisions for Immediate Trial and Limitation of Triable Issues Not Violative of Due Process or Equal-Protection Clauses

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Securities Regulation-Section 16(b) of Securities Exchange Act of 1934--Insider May Sell Enough Stock To Bring His Holdings Below Ten Percent and Within Six …