Multiproduct Sellers May Test PeaceHealth Standard

Law360, New York (October 26, 2007, 12:00 AM EDT) -- On September 4, 2007, the Ninth Circuit issued its opinion in Cascade Health Solutions (f/k/a McKenzie-Willamette Hospital) v. PeaceHealth[1], ruling that bundled discounts violate antitrust law only if the discounts results in below-cost pricing.

PeaceHealth involved the controversial issue of whether a dominant player's bundled discounts constitute attempted monopolization that violates Section 2 of the Sherman Act.

PeaceHealth is significant because it rejected the ambiguous approach adopted by the Third Circuit in LePage's Inc. v. 3M.[2]

The Court instead endorsed a cost-based test to determine when...
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