FTC v. Phoebe Putney Health System, Inc.: Supreme Court rules state law does not offer blanket protection from antitrust laws

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The United States Supreme Court issued a decision limiting antitrust immunity for state-sanctioned conduct. The Court unanimiously overturned the Eleventh Circuit's ruling allowing Phoebe Putney Health System, Inc. to acquire its only hospital competitor, which the Eleventh Circuit had stated was permissible under the state-action doctrine.

In the opinion, the Supreme Court ruled that the granting of general corporate powers to government entities under state law does not offer blanket protection from the antitrust laws and emphasized that immunity from the antitrust laws is "disfavored" unless a state intended to displace competition.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jarod Bona, Bona Law PC | Attorney Advertising

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