McWane, Inc. v. Federal Trade Commission
United States Court of Appeals for the Eleventh Circuit
783 F.3d 814 (2015)
McWane, Inc. (defendant) held 100 percent of the domestic pipe-fitting market until Star Pipe Fittings entered in 2009, at which point McWane began threatening to cut off rebates and purchases for twelve weeks for any distributor who did not buy exclusively from McWane, while also raising its own prices; two years later McWane still held 90 percent of the market despite Star's lower prices, and evidence showed distributors bought from McWane largely out of fear of the exclusivity penalty. The FTC (plaintiff) brought an enforcement action finding McWane's program violated antitrust law, and McWane appealed the FTC's order.
Whether an exclusive-dealing arrangement is unlawful when a firm has monopoly power in a market and it reasonably appears that the firm uses the arrangement to maintain its monopoly power.