Supreme Court of the United States

Nynex Corp. v. Discon, Inc.

December 14, 1998525 U.S. 128

Summary

Justice Breyer delivered the unanimous opinion of the Court, holding that the Sherman Act's per se group-boycott rule does not apply to a single buyer's vertical agreement to favor one supplier over another, even when the purchasing decision lacks a legitimate business justification and forms part of a regulatory fraud. Discon must allege and prove injury to competition, not merely injury to itself. The Court also directed reconsideration of the conspiracy-to-monopolize claim because it rested on the same purchasing practices. It declined to decide whether the complaint otherwise adequately alleged competitive harm because that question fell outside the questions presented. The Court vacated the Court of Appeals' judgment and remanded. There were no separate opinions.

Holding

  • Application of the per se group-boycott rule to a buyer's vertical purchasing agreement.. The per se group-boycott rule does not apply without a horizontal agreement among competitors; Discon must allege and prove injury to competition rather than merely injury to a single competitor.
  • Treatment of the conspiracy-to-monopolize claim based on the same purchasing practices.. The ruling sustaining the Section 2 conspiracy-to-monopolize claim must be reconsidered in light of the rejection of the Section 1 per se theory.
  • Whether to decide the complaint's overall sufficiency to allege competitive harm.. Petitioners could not obtain a ruling that the complaint entirely failed to allege competitive harm because that argument fell outside the questions presented for certiorari.

Docket 96-1570

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