Tuesday, March 8, 2005

Study of class certification in private antrust actions against Microsoft

Professor William Page has published an empirical study of class certification in the private antitrust actions against Microsoft.  His study looks at the effects of the indirect purchaser rule on the decisions of courts to certify class actions in the Microsoft litigation. He writes:

"Although the Illinois Brick rule denies indirect purchasers the right to sue under the federal antitrust laws, many states have authorized these suits under state antitrust or consumer protection law. Before the Microsoft cases, however, courts in the Illinois Brick repealer states had refused, more often than not, to certify indirect purchaser suits as class actions on the grounds that issues specific to the individual plaintiffs, particularly the issue of impact, predominated over the issues common to the class. In these courts' skeptical view, the complexities of proving whether and by how much the direct purchasers had passed on the overcharge to the plaintiffs would likely overwhelm any common issues, like questions of liability, and thus make the cases unsuitable for trial as class actions. The courts in the Microsoft indirect purchaser cases, however, have certified them as class actions much more frequently. "


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