High Court's Eaton Snub Forces Close Look At Discounts

By Melissa Lipman (April 29, 2013, 8:47 PM EDT) -- The U.S. Supreme Court on Monday refused to review a controversial Third Circuit ruling in a monopolization case against Eaton Corp., a rejection that attorneys say will force big-market players to consider the broader effects of their loyalty discounts rather than simply keeping their prices above costs.

Despite a circuit split over how to review loyalty rebates under antitrust law, the justices declined to take up the Third Circuit's decision upholding Meritor Transmission Corp.'s antitrust claims against Eaton.

While most circuits that have considered the issue have concluded that dominant companies can use the rebates as long as they don't price...

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