Motorola Mobility LLC v. AU Optronics Corp.: Seventh Circuit Clarifies Reach of U.S. Antitrust Law to Foreign Commerce

A recent decision from the Seventh Circuit, Motorola v. AU Optronics Corp., provided much-needed clarification on the scope of the Foreign Trade Antitrust Improvements Act (“FTAIA”). Specifically, the court’s decision clarifies that U.S. companies who conduct purchasing and manufacturing operations in foreign commerce are subject to the strictures of the FTAIA just like any other company. The court’s decision also has potentially important implications for the feasibility of state law indirect purchaser claims going forward.

BACKGROUND -

Enacted in 1982, the FTAIA governs the Sherman Act’s application to foreign activity. Pertinent here, the FTAIA removes from the Sherman Act’s reach all commercial activity taking place abroad, unless the activity has a “direct, substantial, and reasonably foreseeable effect” on U.S. or import commerce, and such effect “gives rise” to a claim under the Sherman Act. Only after both elements are satisfied will a Sherman Act claim based on foreign activities be recognized.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Antitrust Litigation, Antitrust Provisions, Foreign Commerce, FTAIA, Motorola

Published In: Antitrust & Trade Regulation Updates, General Business Updates, International Trade Updates

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.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »