Law360, New York (November 26, 2012, 5:39 PM EST) -- The U.S. Supreme Court on Monday heard arguments about the limits of the “state action” exemption to the federal antitrust laws in Federal Trade Commission v. Phoebe Putney Health System Inc.
That exemption exempts from the federal antitrust laws actions by a state as a sovereign. Subdivisions of a state, such as the hospital authority in this case, however, are not sovereign and their actions are immune from prosecution under the antitrust laws only if the state legislature “clearly articulated” a policy to displace competition. If private parties are implementing that policy, those parties also must be “actively supervised” by the...
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