Resale Price Maintenance and the Tenth Anniversary of Leegin

Resale Price Maintenance and the Tenth Anniversary of Leegin Rev Ind Organ (2017) 50:129–131 DOI 10.1007/s11151-017-9569-9 Resale Price Maintenance and the Tenth Anniversary of Leegin Kenneth G. Elzinga Published online: 7 February 2017 Springer Science+Business Media New York 2017 Keywords Resale price maintenance  Antitrust On July 30, 2007, the Supreme Court issued an antitrust opinion that now is often simply called Leegin. The tenth anniversary of this opinion warrants a scholarly anniversary, because Leegin did not merely alter antitrust policy—it caused a 180 reversal of one of the Court’s most venerable antitrust precedents. After the Court’s 1911 decision in Dr. Miles Medical, resale price maintenance (RPM) was per se illegal. Because of Leegin, RPM is now assessed under a rule of reason. Between Dr. Miles Medical and Leegin, there were three breaches in the Court’s stark rejection of RPM. In 1919, the Court issued what came to be called the ‘‘Colgate Doctrine,’’ under which a seller could attempt to implement and enforce an RPM strategy by refusing to deal with a downstream vendor who sold at a price below the level that was stipulated by the seller (so long as there was no agreement between the seller and buyer on this price). In addition, for almost 40 Review of Industrial Organization Springer Journals

Resale Price Maintenance and the Tenth Anniversary of Leegin

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Copyright © 2017 by Springer Science+Business Media New York
Economics; Industrial Organization; Microeconomics
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