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Hayden Pub. Co., Inc. v. Cox Broadcasting Corp.

Citation: 566 F. Supp. 503Docket: 79-C-414

Court: District Court, E.D. New York; May 19, 1983; Federal District Court

Narrative Opinion Summary

This case involves Hayden Publishing Co. Inc., which brought antitrust claims against Cox Broadcasting Corporation and United Technical Publication, Inc. under Sections 1 and 2 of the Sherman Act. Hayden alleged a conspiracy to restrain trade in advertising for electronic catalog directories and claimed monopolization of the market by UTP. The United States District Court granted summary judgment in favor of the defendants, concluding that Hayden's claims were based on a narrow and flawed definition of the relevant product market that excluded legitimate competitors. The court emphasized that Hayden failed to present significant evidence of monopolization or anti-competitive effects despite ample discovery. The decision highlighted that antitrust laws aim to protect competition, not individual competitors, and that the plaintiff did not meet the necessary legal standards to demonstrate a distinct submarket or establish a monopolization claim. The court also found Hayden's Section 1 claim lacked merit, as it did not show any anti-competitive impact on the market. Consequently, the court dismissed Hayden's action and denied its cross-motion for partial summary judgment.

Legal Issues Addressed

Monopolization Claims under Section 2 of the Sherman Act

Application: The plaintiff failed to establish a valid product market for monopolization, as required to prove monopoly power or attempted monopolization by the defendants.

Reasoning: A relevant market definition must consider various competitive elements, not just price sensitivity. Hayden's attempt to define the market narrowly to EEM and Gold Book fails to meet the necessary legal standard for establishing a monopolization claim under Section 2.

Relevant Product Market in Antitrust Claims

Application: The plaintiff's narrow definition of the relevant product market, which excluded actual competitors, undermined the validity of its antitrust claims under the Sherman Act.

Reasoning: The court found that Hayden's claims relied on a narrow definition of the relevant product market, which excluded actual competitors, undermining the validity of the antitrust allegations.

Rule of Reason Analysis under Section 1 of the Sherman Act

Application: The court rejected the plaintiff's Section 1 claim due to the failure to demonstrate any anti-competitive effect on the relevant market, even under a less stringent standard.

Reasoning: Ultimately, Hayden has not met the burden of showing any anti-competitive effect on the relevant market, thus failing to establish a prima facie case under the rule of reason analysis, even if a less rigorous standard were applied.

Summary Judgment in Antitrust Cases

Application: The court granted summary judgment due to the absence of genuine issues of material fact, highlighting the lack of significant evidence provided by the plaintiff despite extensive discovery.

Reasoning: The court determined that it was appropriate here due to the lack of genuine issues of material fact. The plaintiff failed to provide significant evidence supporting its claims despite having ample discovery opportunities.