United States v. United Shoe Machinery Corp.
United States District Court for the District of Massachusetts
110 F. Supp. 295 (D. Mass. 1953)
United Shoe Machinery Corporation (USMC) (defendant) was the leading maker of shoe-manufacturing machinery, controlling over 75 percent of the market. USMC never sold its machines; it only leased them on long-term terms that discouraged customers from switching to competitors. The United States (plaintiff) sued, alleging USMC monopolized the shoe-machinery market in violation of the Sherman Act, and sought a consent decree ending the practices. USMC argued its market share was lawfully earned and that it had not abused its position to exclude competitors.
Whether a defendant violates Section 2 of the Sherman Act when it has the power to exclude competition and that power reduces actual and potential competition.