Texas

• Pages: 2357-2426

Chapter 47

for the

STATE OF TEXAS

Updated and Revised by

David R. McAtee II, Esq.

A. Michael Warnecke, Esq.

Haynes and Boone, LLP

Dallas, Texas

The Section of Antitrust Law thanks Mark Tobey, Assistant Attorney General,

Antitrust Section Chief, Texas Attorney General’s Office.

The Section gratefully acknowledges Page I. Austin, Esq., Karen B. Jewell, Esq.,

Jeffrey S. Johnston, Esq., and Allan Van Fleet, Esq. for their work on this chapter in

prior editions.

Texas 47-iii

CONTENTS

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

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

1.b. Source of Law–Statutes and Other....................................................1

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

1.e. Remedies and Enforcement...............................................................2

2. The Per Se Rule and the Rule of Reason ....................................................... 3

3. Horizontal Agreements Other Than Group Boycotts .................................... 5

3.a. Price Fixing .......................................................................................5

3.b. Market Allocation .............................................................................6

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

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

3.e. Covenants Not to Compete ...............................................................7

4. Group Boycotts............................................................................................ 11

4.a. Concerted Refusals to Deal .............................................................11

4.b. Expulsion or Exclusion from Membership in Trade

Associations or Other Groups .........................................................12

5. Resale Price Maintenance............................................................................ 12

5.a. Generally.........................................................................................12

5.b. Monsanto Rule................................................................................12

5.c. Impact of Leegin .............................................................................13

6. Nonprice Vertical Restraints–Intrabrand..................................................... 14

7. Nonprice Vertical Restraints–Interbrand..................................................... 16

8. Tying Arrangements .................................................................................... 19

9. Dual Distribution ......................................................................................... 21

10. Intracorporate Conspiracy............................................................................ 21

11. Monopolization............................................................................................ 21

11.a. Monopolization...............................................................................21

11.b. Attempts to Monopolize..................................................................22

11.c. Monopoly Leveraging..................................................................... 23

11.d. Predatory Pricing.............................................................................24

11.e. Conspiracy to Monopolize ..............................................................25

12. Mergers........................................................................................................ 26

13. Discrimination & Other Single Firm Pricing Regulation ............................ 28

13.a. Price Discrimination .......................................................................28

13.a.1. Territorial or Locality Discrimination ............................ 28

13.a.2. Buyer Liability................................................................ 28

13.a.3. Meeting Competition Defense........................................ 28

13.a.4. Functional Classifications............................................... 28

13.a.5. Preemption...................................................................... 29

13.a.6. Other Defenses and Exemptions..................................... 29

13.a.7. Brokerage........................................................................ 29

13.a.8. Secret Payments or Allowances...................................... 29

13.a.9. Promotional Allowances and Services............................ 30

13.a.10. Sales Below Cost and Loss Leaders ............................... 30