US: Court readies to clarify global reach of antitrust law

The Seventh Circuit is readying to rehear a lawsuit that will clarify the extent of US antitrust law’s reach in overseas conduct.

The Seventh Circuit has vacated its earlier decision in Motorola Mobility vs. AU Optronics that ruled Motorola could not show that AU Optronics’ price-fixing abroad did not lead to a “direct” effect on US commerce and that the higher prices of Motorola phones sold in the US did not give rise to antitrust claims. Motorola must show that AU Optronics’ pricing conduct abroad directly harmed US commerce under the Foreign Trade Antitrust Improvements Act.

Reports say that it has already been established that US antitrust law can hold jurisdiction over foreign commerce if conduct “has a direct, substantial, and reasonably foreseeable effect on American commerce and the activity ‘gives rise’ to an antitrust claim.” This case will clarify the types of conduct that satisfy these standards.

As the Seventh Circuit prepares for oral arguments beginning November 13, reports say the US Department of Justice has filed an amicus brief on the matter urging the court to hold price-fixing conspiracies conducted overseas that affect finished products sold in the US liable under FTAIA.

Reports say the American Antitrust Institute was denied permission by the court to file a brief.

Full content: JD Supra

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