Lorain Journal Co. v. United States (1951)

1
Lorain Journal Co. v. United States (1951)
Basic Facts Defendant, controller newspaper
and radio station in Lorain, Ohio refused to
accept advertising from Loraine merchants who
also advertised in new competing radio station in
adjoining town. Purpose was to force advertisers
to boycott competing station and preserve its
monopoly. What was defendants defense? What is
the private right to select customers and do
business with whomever you choose? How
vulnerable is that right? What are attempt to
monopolize elements?
2
U.S. v. Griffith (1948)
Basic Facts Large theatre owner (53 towns
monopoly, 32 not monopoly) negotiated blanket
license with distributors to get first run of
films in all theaters. Is large scale buying not
illegal per se? Is a blanket license inherently
suspect? How did blanket license help in 53
monopoly markets? Is it illegal to use monopoly
power in one market to gain competitve advantage
in a non-monopoly market?
3
U.S. v. United Shoe Machinery Corp (1954)

• Basic Facts USM manufactured over 75 of
  shoe-making machines that were offered under 10
  year licenses that required their use to full
  capacity and locked users in.
• What was the significance of conduct being
  honestly industrial?
• How did court view inevitable consequence of
  ability, natural forces, or law?
• How did court view impact of technology and
  innovation on competition?
• How did court view its divestiture power?

4
Essential Facilities and Duty to Deal
U.S. v Terminal Railroad Assoc. of St. Louis
(1912) Ct held that railroads who owned only
railroad facility into St. Louis violated Sherman
1 and 2 by trying to control access of competitor
railroads. Association must be an impartial
agent for all who, owing to conditions, are under
compulsion to use its facilities. Otter Tail
Power v. U.S. (1973) Electric utility that
previously sold to towns at retail refused to
sell at wholesale to towns that had built their
own transmission facilities or to wheel at
wholesale for Bureau of Reclamation who agreed to
sell to towns. Finding illegal monopolization,
Ct said Otter Tail had used its strategic
dominance to foreclose potential entrants.
5
Official Airlines Guides Inc. v. FTC (1980)
Basic Facts Publisher of official airline guide
refused to include commuter airline schedules,
which forced many to book commuter flights
through major carriers. Commuters were at
competitive disadvantage. Rationale for
exclusion was that commuters were less reliable
with schedules. How can this be distinguished
from Loraine Case? Otter Tail case? Why was
court concerned about limits of antitrust?
6
Aspen Skiing Co. v. Aspen Highlands Skiing Corp.
(1985)
Basic Facts For many years, Aspen skiers could
buy four day pass to ski all areas. Aspen
acquired all players except Highlands (smaller,
inferior resort) and then eliminated four day
pass and offered only 3 day that excluded
Highlands. When Highlands tried to offer
vouchers to Aspen facilities to attract business,
Aspen refused to honor vouchers. Jury awarded
Highland 7.5 million treble damages, plus costs
and atty fees. Court of Appeals affirmed. Did
Aspen have monopoly power? What was alleged
error, per Aspen? Was this essential facilities
case? Who was hurt by what Aspen did?
7
Olympic Equipment Leasing Co. v. Western Union
(1986)
Basic Facts Western Union desired to increase
telex sales. Encouraged and assisted
independents, like Olympic, to buy and lease
terminals. When sales were slow, pulled support
from independents (flush these turkeys) and
decided to go direct to move inventory. Never
denied services to customers of independents. Is
Western Union any different than Aspen Ski? Was
there an essential facility? Was the essential
facility withheld to get preserve monopoly? What
did Western Union do that hurt Olympic, an
independent?