Narrative Opinion Summary
In this antitrust case, the United States brought a civil action against Greater Buffalo Press, Inc., alleging violations of Section 7 of the Clayton Act and Section 1 of the Sherman Act due to its acquisition of International Color Printing Co. The District Court initially dismissed the Clayton Act claim, citing two separate lines of commerce and applying the 'failing company' exception. However, the appellate court reversed this decision, finding that the relevant line of commerce was the color comic supplement printing business, where Greater Buffalo held a dominant market share. The appellate court rejected the 'failing company' doctrine, as International showed potential for viability and alternative buyers were not exhausted. Additionally, the appellate court emphasized that the passage of time does not negate the need for divestiture of unlawfully acquired assets. The case was remanded for the District Court to draft an appropriate remedy and further consider the implications of a consent decree with Hearst and the status of a new printing plant in Sylacauga, Alabama. The Supreme Court acknowledged jurisdiction and reversed the District Court's dismissal, underscoring the need for a comprehensive analysis of the competitive impacts of the acquisition in the comic supplement industry.
Legal Issues Addressed
Application of Section 7 of the Clayton Actsubscribe to see similar legal issues
Application: The appellate court determined that the acquisition of International by Greater Buffalo substantially lessened competition in the color comic supplement printing market.
Reasoning: The appellate court determined that the relevant line of commerce is the color comic supplement printing business, finding that Buffalo controlled approximately 75% of this market, thereby substantially lessening competition.
Divestiture Despite Passage of Timesubscribe to see similar legal issues
Application: The law states that the passage of time does not preclude the divestiture of illegally acquired stock, which aims to eliminate market power gained unlawfully.
Reasoning: However, the law states that the passage of time does not prevent divestiture of illegally acquired stock, which aims to eliminate market power gained unlawfully.
Evaluation of Sylacauga Plantsubscribe to see similar legal issues
Application: The status of Greater Buffalo's printing plant in Sylacauga, Alabama, built following the acquisition, must be evaluated by the District Court to determine its impact on competition.
Reasoning: The District Court must evaluate this plant's status in light of relevant legal precedents.
Failing Company Doctrinesubscribe to see similar legal issues
Application: The appellate court rejected the District Court's application of the 'failing company' exception, finding that International did not meet the necessary criteria for this exception.
Reasoning: The appellate court also rejected the District Court's application of the 'failing company' exception, stating that International did not meet the criteria for significant business failure and lack of other prospective buyers.
Integration of Consent Decree with Hearstsubscribe to see similar legal issues
Application: The District Court must examine how the consent decree with Hearst, which allows King Features to combine the sale of features and printing, integrates into the current proceedings.
Reasoning: The District Court must assess how this consent decree integrates into the current proceedings, as there is insufficient information on its operation.