Relevant product/geographic market definition and market power under the Rule of Reason

AND · 15usc1:restraint.market-power

Under the Rule of Reason (absent direct proof of actual detrimental effects on price or output under FTC v. Indiana Federation of Dentists, 476 U.S. 447 (1986)), plaintiff must define a relevant product and geographic market and prove defendants possess market power within it.

Exact element source

in restraint of trade or commerce
Source: docroot/ir/usc/title15.jsonl#title15_sec1; Unicode character offsets [135:168] (end exclusive); SHA-256 9c248965c2c712de1e3f3d52a17be4c90dfdcac5d3f9fea0b7220b164e2c2973.

Routes and case patterns

Curated routes and observed case patterns
RouteDefinitionMerits instance blocksDistinct merits casesExamples (up to 3 cases per count group)
Unclassified route
provisional; 4 observed cases
no definition yet0
Satisfied 0; not satisfied 0; excluded context 4
0

Used only in non-merits blocks (4).

Excluded context examples:

North Jackson Pharmacy, Inc. v. Caremark Rx, Inc. — 385 F. Supp. 2d 740 (2005) · United States District Court for the Northern District of Illinois · 2005 — not reached · basis not recorded (15usc1: author: Fable · QA: PASS (QA1, neov2/qa/cases-v1-QA1.md)) · rule-announced/merits · not counted
Pattern: not recorded

Levine v. Central Florida Medical Affiliates, Inc. — 864 F. Supp. 1175 (1994) · United States District Court for the Middle District of Florida · 1994 — not reached · basis not recorded (15usc1: author: Fable · not independently reviewed) · applied/alternative · not counted
Pattern: not recorded

Systemcare, Inc. v. Wang Laboratories Corp. — 117 F.3d 1137 (1997) · United States Court of Appeals for the Tenth Circuit · 1997 — not reached · basis not recorded (15usc1: author: Fable · not independently reviewed) · rule-announced/merits · not counted
Pattern: not recorded

_whole
accepted; provisional (1 case)
The element is decided as a whole: the reasoning turns on no narrower doctrinal sub-question that distinguishes it from any other application of this element.0
Satisfied 0; not satisfied 0; excluded context 1
0

Used only in non-merits blocks (1).

Excluded context examples:

Leegin Creative Leather Products, Inc. v. PSKS, Inc. — 551 U.S. 877 (2007) · Supreme Court of the United States · 2007 — not reached · basis not recorded (15usc1: author: Fable · not independently reviewed) · rule-announced/merits · not counted
Pattern: rule-of-reason-factor/market-power-of-manufacturer-or-retailer

How courts decided this element

Annotation blocks, including explicitly excluded context
CaseElementHolding and scopePatternExact source quotations
North Jackson Pharmacy, Inc. v. Caremark Rx, Inc. — 385 F. Supp. 2d 740 (2005) · United States District Court for the Northern District of Illinois · 2005 — not reached (15usc1: author: Fable · QA: PASS (QA1, neov2/qa/cases-v1-QA1.md))Relevant product/geographic market definition and market power under the Rule of Reasonnot_reached
Excluded from merits counts
rule-announced / merits

Market power is necessary under the rule of reason but cannot convert a restraint into a per se violation; whether Caremark has it is not decided.
Unspecified route
there appears to be no authority (and indeed none is found in the cases North Jackson cites) to support the notion that substantial market power is a sufficient, rather than a necessary, basis for finding that a given restraint is per se unlawful under Section 1
Source: docroot/ir/caselaw/f_supp_2d_385.jsonl#/f-supp-2d/385/0740-01; Unicode character offsets [29159:29421] (end exclusive); SHA-256 061c34d0b500376f04d011b5ab2e2f1ac60dba2bb321f15089be5be4b7c5e5d9.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Levine v. Central Florida Medical Affiliates, Inc. — 864 F. Supp. 1175 (1994) · United States District Court for the Middle District of Florida · 1994 — not reached (15usc1: author: Fable · not independently reviewed)Relevant product/geographic market definition and market power under the Rule of Reasonnot_reached
Excluded from merits counts
applied / alternative

count: Count I; subject: count=Count I

Court criticises a single-brand market (services to members of defendant's own PPO) as circular but expressly does not rest on it. The test sentence ("Plaintiff must, therefore, define the market and establish market power") is filed as the rule line of the restraint.per-se Count I block.
Unspecified route
He has limited the product market to a service rendered solely by Defendants.
Source: docroot/ir/caselaw/f_supp_864.jsonl#/f-supp/864/1175-01; Unicode character offsets [34782:34859] (end exclusive); SHA-256 06c1960d1dc678061d6eacfba6f9a02c11fb0fa2859d08dc7ca865e6700f0fb3.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Systemcare, Inc. v. Wang Laboratories Corp. — 117 F.3d 1137 (1997) · United States Court of Appeals for the Tenth Circuit · 1997 — not reached (15usc1: author: Fable · not independently reviewed)Relevant product/geographic market definition and market power under the Rule of Reasonnot_reached
Excluded from merits counts
rule-announced / merits

Unspecified routeNo source quotation recorded for this block.
Tunica Web Advertising v. Tunica Casino Operators Ass'n — 496 F.3d 403 (2007) · United States Court of Appeals for the Fifth Circuit · 2007 — not reached (15usc1: author: Fable · QA: PASS (QA1, neov2/qa/cases-v1-QA1.md))Relevant product/geographic market definition and market power under the Rule of Reasonnot_reached
Excluded from merits counts
applied / merits

Unspecified routeNo source quotation recorded for this block.
Leegin Creative Leather Products, Inc. v. PSKS, Inc. — 551 U.S. 877 (2007) · Supreme Court of the United States · 2007 — not reached (15usc1: author: Fable · not independently reviewed)Relevant product/geographic market definition and market power under the Rule of Reasonnot_reached
Excluded from merits counts
rule-announced / merits

theory: vertical minimum resale price maintenance agreements between manufacturer and retailers; subject: theory=vertical minimum resale price maintenance agreements between manufacturer and retailers

rule-of-reason-factor/market-power-of-manufacturer-or-retailer
As a final matter, that a dominant manufacturer or retailer can abuse resale price maintenance for anticompetitive purposes may not be a serious concern unless the relevant entity has market power.
Source: docroot/ir/caselaw/us_551.jsonl#/us/551/0877-01; Unicode character offsets [33439:33636] (end exclusive); SHA-256 6dc0b5ffec12ec474152aa4935b052042835b8bd19a739a908c122c1a115df37.

Evidence kind: rule; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Court interpretations

interpretation

As a final matter, that a dominant manufacturer or retailer can abuse resale price maintenance for anticompetitive purposes may not be a serious concern unless the relevant entity has market power.

Leegin Creative Leather Products, Inc. v. PSKS, Inc. — 551 U.S. 877 (2007) · Supreme Court of the United States · 2007 (15usc1: author: Fable · not independently reviewed)

As a final matter, that a dominant manufacturer or retailer can abuse resale price maintenance for anticompetitive purposes may not be a serious concern unless the relevant entity has market power.
Source: docroot/ir/caselaw/us_551.jsonl#/us/551/0877-01; Unicode character offsets [33439:33636] (end exclusive); SHA-256 6dc0b5ffec12ec474152aa4935b052042835b8bd19a739a908c122c1a115df37.

Under the Rule of Reason (absent direct proof of actual detrimental effects on price or output under FTC v. Indiana Federation of Dentists, 476 U.S. 447 (1986)), plaintiff must define a relevant product and geographic market and prove defendants possess market power within it.

interpretation

Plaintiff must, therefore, define the market and establish market power.

Levine v. Central Florida Medical Affiliates, Inc. — 864 F. Supp. 1175 (1994) · United States District Court for the Middle District of Florida · 1994 (15usc1: author: Fable · not independently reviewed)

Plaintiff must, therefore, define the market and establish market power.
Source: docroot/ir/caselaw/f_supp_864.jsonl#/f-supp/864/1175-01; Unicode character offsets [34369:34441] (end exclusive); SHA-256 06c1960d1dc678061d6eacfba6f9a02c11fb0fa2859d08dc7ca865e6700f0fb3.

Under the Rule of Reason (absent direct proof of actual detrimental effects on price or output under FTC v. Indiana Federation of Dentists, 476 U.S. 447 (1986)), plaintiff must define a relevant product and geographic market and prove defendants possess market power within it.

interpretation

there appears to be no authority (and indeed none is found in the cases North Jackson cites) to support the notion that substantial market power is a sufficient, rather than a necessary, basis for finding that a given restraint is per se unlawful under Section 1

North Jackson Pharmacy, Inc. v. Caremark Rx, Inc. — 385 F. Supp. 2d 740 (2005) · United States District Court for the Northern District of Illinois · 2005 (15usc1: author: Fable · QA: PASS (QA1, neov2/qa/cases-v1-QA1.md))

there appears to be no authority (and indeed none is found in the cases North Jackson cites) to support the notion that substantial market power is a sufficient, rather than a necessary, basis for finding that a given restraint is per se unlawful under Section 1
Source: docroot/ir/caselaw/f_supp_2d_385.jsonl#/f-supp-2d/385/0740-01; Unicode character offsets [29159:29421] (end exclusive); SHA-256 061c34d0b500376f04d011b5ab2e2f1ac60dba2bb321f15089be5be4b7c5e5d9.

Under the Rule of Reason (absent direct proof of actual detrimental effects on price or output under FTC v. Indiana Federation of Dentists, 476 U.S. 447 (1986)), plaintiff must define a relevant product and geographic market and prove defendants possess market power within it.