FTC Consent Decree Bars Transitions Optical From Entering Into Exclusive Dealing Agreements With Downstream Customers

more+
less-

Continuing its recent focus on business practices that have the effect of helping dominant firms maintain their market position against competitors, the Federal Trade Commission (FTC) last week announced it had entered into a settlement with Transitions Optical, the leading provider of photochromic treatments for corrective eyeglasses in the United States. The FTC alleged that Transitions had maintained its monopoly power by engaging in exclusionary conduct since 1999, such as entering into exclusive dealing agreements or de facto exclusive dealing agreements that foreclosed its rivals from critical channels of distribution and deterred potential rivals from entering the market. When read in conjunction with the FTC’s complaint against Intel, the Transitions consent decree signals a cautionary note that firms with significant market shares must tread carefully when designing business strategies in response to potential competitive threats. Terminating relations with customers who do business with rivals and requiring customers to enter into exclusive deals raise red flags in today’s antitrust environment.

Please see full alert below for more information.

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


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.

© Wilson Sonsini Goodrich & Rosati | Attorney Advertising

Written by:

more+
less-

Wilson Sonsini Goodrich & Rosati on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×