Federal Trade Commission v. Whole Foods Market, Inc.
United States Court of Appeals for the District of Columbia
548 F.3d 1028 (2008)
Whole Foods and Wild Oats (defendants) were the two largest premium natural-and-organic supermarket chains in the country. When Whole Foods announced it would acquire Wild Oats, the FTC (plaintiff) sued to block the merger under Section 7 of the Clayton Act, arguing the two competed in a distinct premium-supermarket submarket. Whole Foods argued the relevant market included all supermarkets. The FTC's expert found that most Wild Oats customers would switch to Whole Foods rather than a conventional store if Wild Oats closed, and that Whole Foods charged more where no Wild Oats was nearby. The district court found the FTC had not shown a premium-supermarket submarket and denied a preliminary injunction; the FTC appealed.
Whether core or committed customers, as distinct from casual or marginal ones, can be used to define a relevant product submarket for antitrust analysis.