Anheuser-Busch, Inc. v. Federal Trade Commission
United States Court of Appeals for the Seventh Circuit
289 F.2d 835 (1961)
Relevant factsFree
AB (defendant), a national brewer, cut prices and increased competitive efforts specifically in the St. Louis market after national sales declined, temporarily gaining significant market share before prices and share both reverted; the FTC (plaintiff) found a Robinson-Patman violation based heavily on AB's mere ability to use national profits to subsidize its St. Louis losses, without evidence it actually did so.
IssueFree
Whether, if a national firm cuts prices in a geographic submarket, the firm's mere ability to use national profits to stabilize local losses caused by the price-cutting is enough to prove a Robinson-Patman Act violation.
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