August 26, 2005
U.S. is Not the Only Country that Can Look at Extraterritorial Companies
The United States in the case of United States v. Nippon, 109 F.3d 1 (1st 1997) prosecuted antitrust activity occurring entirely outside the United States. The conduct was found to have a substantial "effect" on the U.S. The U.S. may now be seeing how other countries respond, although the conduct being examined here is not alleged to be extraterritorial, but the company has its offices in New York.
The Atlanta Jrl Const. (AP) here reports that Russia has "opened a probe on PepsiCo." and although there is no allegation of antitrust, the newspaper reports that the conduct relates to an alleged practice of "forbid[ding] retailers from selling products made by its competitors." The article notes that this is not the first time that Russia has looked at a US company for this type of alleged conduct. The prior case with another company was resolved.
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