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Supreme Court of the United States - 334 U.S. 1
Tags: Constitutional Law, Enforcement
Video Summary
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The United States sued four corporations and two individuals for violating sections 1 and 2 of the Sherman Act by granting exclusive privileges that unreasonably restrained competition. The District Court erred by not recognizing the anticompetitive effects of these exclusive privileges. However, the court found that there was no conspiracy between the appellee exhibitors or between them and the distributors that violated the Act. The court also found that the agreements under which films were distributed were not in restraint of trade, and that the appellees did not monopolize or attempt to monopolize the licensing or supply of film. The court further found that the appellees did not conspire to obtain exclusive privileges in selecting films before they were made available to any competing exhibitor, and that there was no agreement between defendants and distributors granting defendants unreasonable clearances. Additionally, the court found that the appellees did not compel or attempt to compel distributors to grant them privileges not granted to their competitors or which gave them any substantial advantage over their competitors. Finally, the court found that the appellees did not condition the licensing of films in any competitive situation on the licensing of such films in a non-competitive situation, or vice versa.
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