Clarification From High Court On State Action Exemption

Law360, New York (February 19, 2013, 5:22 PM EST) -- In a unanimous opinion Feb. 19, 2013, the U.S. Supreme Court reversed the Eleventh Circuit in Federal Trade Commission v. Phoebe Putney Health System Inc. and found that a merger of two Georgia hospitals was not immune from the federal antitrust laws under the “state action” exemption. Writing for a unanimous court, Justice Sonia Sotomayor found that the exemption was not met because the potentially anti-competitive merger was not “the inherent, logical or ordinary result of the exercise of authority” granted to the state subdivision. This...
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