Leegin Case: Resale Price Maintenance vs. Consumer Welfare

Law Comments by Rimantas Daujotas

18 Pages Posted: 18 Jun 2011  

Rimantas Daujotas

Queen Mary, University of London

Date Written: April 2011

Abstract

A new approach to vertical price fixing, brought up in Leegin by U.S. Supreme Court had triggered various debate and it is still not clear whether resale price maintenance (RPM) can have severe anticompetitive potential or can also be beneficial to competition. Main problem of assessing pro-competitive or anti-competitive effects of RPM is that there is a substantive lack of empirical evidence. Furthermore, there is a room for manipulation where contradictory economic theories are brought. Albeit EU Competition Law is always influenced by U.S. Antitrust policy, however, it can be argued that EU should not follow a liberal approach to RPM made in Leegin.

Keywords: Leegin case, resale price maintenance, vertical price fixing agreements, pro-competitive, anti competitive effects, EU competition, U.S. antitrust law

JEL Classification: K21

Suggested Citation

Daujotas, Rimantas, Leegin Case: Resale Price Maintenance vs. Consumer Welfare (April 2011). Law Comments by Rimantas Daujotas. Available at SSRN: https://ssrn.com/abstract=1866191

Rimantas Daujotas (Contact Author)

Queen Mary, University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

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