Anti-Trust Law

Question 1

Purpose of Anti-Trust Laws

Answer 1

Protect and Promote Competition
Create an Efficient Market
Protect Consumers

Question 2

Sherman Act

Answer 2

Most Important and Frequently Invoked
Prohibits Agreements that Unreasonably Restrain Competition
(ex: GM and Ford talking about not selling a car for under $45k)

Question 3

Per Se Illegal

Answer 3

Obvious Anticompetitive Activities

Plaintiff Does Not Need to Prove Any Actual or Likely Anticompetitive Effects

Question 4

Rule of Reason

Answer 4

Not Obviously Anticompetitive

Look at Facts and Circumstances

Question 5

Horizontal Price Fixing

Answer 5

Two Competitors Agreeing on Prices
Naked – Per Se Violation
Ancillary – Rule of Reason

Question 6

Horizontal Group Boycotts

Answer 6

Agreeing With Competitors to Boycott Other Suppliers/Vendors/Businesses
Normally Rule of Reason unless market power is high

Question 7

Tying Arrangement

Answer 7

Seller and Buyer Agree that the Seller Will Sell the Buyer One Product or Service but Only if the Buyer Purchases a Second Separate Product or Service
Rule of Reason

Classic Example (not very common in healthcare field): Netscape sued Microsoft because Microsoft tied together their internet explorer with Word office and you couldn’t tear it apart anymore. You’re forcing consumers to use both … not allowed. Comes up a lot in IT.

Question 8

Exclusive Dealing

Answer 8

Buyer and Seller Agree either (1) that the Seller Will Sell to Only One Buyer, and Not to that Buyer’s Competitors; or (2) that a Buyer will Buy Only From that Seller, and not from its Competitors
Rule of Reason
Conduct itself isn’t bad, but what’s the impact on the consumer? Doug thinks healthcare organizations do this – like exclusive arrangements with insurance companies in their market

Question 9

Sherman Act - Section 2

Answer 9

Single Firm with Substantial Market Power that engages in Conduct Preventing Other Firms from Encroaching on that Power

Question 10

Monopolies

Answer 10

Power to Control Prices and Exclude Competition

Willful Acquisition, Maintenance, or Addition to Monopoly Power By Predatory or Unreasonable Exclusionary Conduct

Question 11

Clayton Act - Section 7

Answer 11

Prohibits All Types of Mergers and Other Forms of Acquisitions that May Lessen Competition Substantially
Mergers of Certain Sizes Require Notifications to DOJ and FTC (Hart-Scott-Rodino Filing)

Question 12

Merger Analysis

Answer 12

Relevant Product Market
Relevant Geographic Market
Identification of Competitors
Calculation of Each Competitor’s Market Share
Post Merger Market Share and Concentration

Question 13

Labor Unions

Answer 13

Statutory Antitrust Exemption

Applies to Employer & Employee Relationship

Question 14

Health Care Quality Improvement Act

Answer 14

Immunity Related to Credentialing of Physicians