Massachusetts

• Pages: 1237-1288

Chapter 24

for the

COMMONWEALTH OF MASSACHUSETTS

Updated and Revised by

Neil P. Motenko, Esq.

Kathryn K. Conde, Esq.

Sarah P. Kelly, Esq.

Nutter, McClennen & Fish LLP

Boston, Massachusetts

The Section of Antitrust Law thanks Jesse Caplan, Assistant Attorney General,

Consumer Protection and Antitrust Division, Public Protection Bureau,

Massachusetts Attorney General’s Office, for his review of this chapter.

The Section gratefully acknowledges Michael L. Chinitz, Esq., Neil P. Motenko,

Esq., and Rebecca L. Shuffain, Esq. for their work on this chapter in prior editions.

Massachusetts 24-iii

CONTENTS

1. Introduction ................................................................................................... 1

1.a. Overview.......................................................................................... 1

1.c. History.............................................................................................. 1

1.d. Relation to Federal Law................................................................... 2

1.e. Enforcement..................................................................................... 3

2. The Per Se Rule and the Rule of Reason ....................................................... 4

3. Horizontal Agreements Other Than Group Boycotts .................................... 4

3.a. Price Fixing...................................................................................... 4

3.b. Market Allocation ............................................................................ 5

3.c. Customer Allocation ........................................................................ 6

3.d. Bid Rigging...................................................................................... 6

3.e. Covenants Not to Compete .............................................................. 6

4. Group Boycotts.............................................................................................. 7

4.a. Concerted Refusals to Deal.............................................................. 7

4.b. Expulsion or Exclusion from Membership in Trade

Associations or Other Groups .......................................................... 8

5. Resale Price Maintenance.............................................................................. 8

5.a. Generally.......................................................................................... 8

5.b. Monsanto Rule ................................................................................. 8

5.c. Impact of Leegin .............................................................................. 9

6. Nonprice Vertical Restraints–Intrabrand....................................................... 9

7. Nonprice Vertical Restraints–Interbrand..................................................... 11

8. Tying Arrangements .................................................................................... 11

9. Dual Distribution ......................................................................................... 12

10. Intracorporate Conspiracy............................................................................ 12

11. Monopolization............................................................................................ 12

12. Mergers........................................................................................................ 14

13. Discrimination & Other Single Firm Pricing Regulation ............................ 16

13.a. Price Discrimination ...................................................................... 16

13.a.10. Sales Below Cost and Loss Leaders............................ 16

13.c. Specific Industry Rules .................................................................. 17

13.c.1. A lcohol and Beverages ............................................... 18

13.c.2. Cigarettes .................................................................... 18

13.c.3. D airy........................................................................... 18

13.c.4. Fuel and Petroleum ..................................................... 18

13.c.5. Motion P ictures........................................................... 18

13.c.6. Insurance ..................................................................... 18

14. Exemptions and Defenses to Antitrust Liability.......................................... 18

14.a. Statutory Exemptions and Defenses............................................... 18

14.a.1. State Action................................................................. 18

14.a.2. Contribution ................................................................ 20

14.a.4. Statute of Limitations.................................................. 20

14.a.23. Miscellaneous ............................................................. 21

14.b. Nonstatutory Exemptions and Defenses ........................................ 21