Supreme Court Holds That Minimum Resale Price Maintenance is Not a Per Se Violation of Antitrust Law
On June 28, 2007, the United States Supreme Court reversed a century-old precedent and ruled that minimum resale price maintenance is no longer an automatic (per se) antitrust violation. In its decision (Leegin Creative Leather Products, Inc. v. PSKS, Inc.), the Court ruled that such vertical restraints will now be judged under the "rule of reason," which permits a defendant to show that challenged conduct has procompetitive benefits. This memorandum addresses this important decision in the field of antitrust law.