Emergence of the Rule of Reason

Rule of Reason: provides the interpretive framework for Sherman Act § 1

1. Initial burden: P has burden to make the prima facie case that there was (a) CCC, (b) ROT, and (c) antitrust injury.
2. If P satisfies initial burden: D has burden to provide some procompetitive justification for ROT
3. If D satisfies burden: P has burden to show that the anticompetitive effects outweigh the procompetitive justification

Per se illegality: agreements without a legally recognized procompetitive justification

• P must still satisfy its initial burden under the Rule of Reason (CCC, ROT, and antitrust injury) - an additional showing of market power is sometimes required

Contents

• Early Common Law
• Early Section 1 Cases
• Development of the Rule of Reason
• Development of Per Se Illegality
• Modern Antitrust Analysis