The U.S. Court of Appeals for the Third Circuit ruled that a transmission manufacturer’s supply contracts with truck makers, which included market-share discounts, could be condemned as unlawful de facto exclusive dealing arrangements. The U.S. Court of Appeals for the Second Circuit decided that indirect purchasers’ claims that air carriers conspired in violation of the Sherman Act were preempted by federal aviation laws.

Other antitrust developments of note included charges by the Department of Justice and the state of California that high technology firms agreed to refrain from soliciting one another’s employees in violation of federal and state antitrust law, and the U.S. Supreme Court’s agreement to tackle “reverse payment” settlements of pharmaceutical patent disputes.

Market-Share Discounts

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