Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Saturday, July 7, 2007

Tying Conspiracies

Posted by D. Daniel Sokol

Christopher Leslie at Chicago Kent College of Law has a new article out titled Tying Conspiracies.

ABSTACT: Antitrust law has long condemned tying arrangements when they are imposed by a single dominant firm. However, tying jurisprudence does not recognize that tie-ins can also occur as the result of a conspiracy among competitors. Consequently, antitrust doctrine fails to appreciate the unique anticompetitive dangers of concerted tying arrangements. After providing real-world examples of tying conspiracies, Professor Leslie explains how concerted tying arrangements present a far greater threat to competitive markets than traditional, unilaterally imposed tying arrangements. Because tying jurisprudence evolved without considering the existence or effects of concerted tie-ins, the current test for evaluating the legality of tying arrangements is inappropriately lenient to tying conspiracies. This is completely inconsistent with one fundamental principle of American antitrust law: concerted action should be treated more harshly than unilateral conduct. Finally, the Article advocates per se illegality for tying conspiracies and argues that greater appreciation of concerted tie-ins can inform the ongoing academic debate about tying arrangements more generally.

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The current tying of the mideastern oil countries after Iraq oil was taken out of the market is a prime example. Oil has gone from $20 bbl to$70 due to monopoly.

Posted by: Norm | Jul 15, 2007 10:06:03 PM

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