Conclusion

• Pages: 49-50

A Primer on the Law of Joint Purchasing

49

ceeded, the buying group could still easily

be lawful, but the group should be prepared

to demonstrate why price competition in the

downstream market is unlikely to be dimin-

ished—for example, because the down-

stream market is unconcentrated and the

buying-group members have low market

shares.

6. Strongly Consider Adopting Three Key

Pro-competitive Rules. Three rules are sig-

nificant safeguards helping to mitigate any

potential anticompetitive concerns:

•Do not require members to purchase exclu-

sively through the group, although a vol-

ume purchase commitment can be secured

so the group can operate efficiently.

•Where members are competitors, use an in-

dependent agent to operate the venture and

negotiate with buyers.

•Keep communications between the group

and each individual member confidential.

VII. Conclusion

The Section of Antitrust Law has designed

this Primer to help you understand how the an-

titrust laws apply to the formation and opera-

tion of joint purchasing arrangements. While

the laws sometimes may seem simple on their

face, they are often quite intricate and detailed