Guidelines For Avoiding Anti-Competitive Bundling

Law360 (October 3, 2007, 12:00 AM EDT) -- On Sept. 4, the Court of Appeals for the Ninth Circuit issued its much-anticipated opinion in Cascade Health Solutions (f/k/a McKenzie Williamette Hospital) v. PeaceHealth, No. 05-35627.

PeaceHealth addresses the important issue of whether a dominant firm's bundled discounts can constitute anti-competitive acts in violation of Section 2 of the Sherman Act.

The Ninth Circuit, largely adopting the analysis of bundling set forth in the recent report of the Antitrust Modernization Commission, held that bundled discounts are anti-competitive only if the discount results in below-cost pricing....
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