Justia Antitrust & Trade Regulation Opinion Summaries

The district court certified a nationwide indirect purchaser class in antitrust multidistrict litigation seeking injunctive and monetary relief under sections 1 and 2 of the Sherman Act and California law against Qualcomm. The suit alleged that Qualcomm maintained a monopoly in electronic chips by engaging in a “no-license-no-chips” policy and sold chips only at above-FRAND (fair, reasonable, and non-discriminatory) royalty rates; refusing to license its standard-essential patents to rival chip suppliers; and entering into exclusive dealing arrangements with Apple. The plaintiffs, consumers who bought cellphones, alleged that Qualcomm’s monopoly harmed consumers because the amount attributable to an allegedly excessive royalty was passed through the distribution chain to consumers.The Ninth Circuit vacated. The court noted its 2020 holding, FTC v. Qualcomm, that Qualcomm’s modem chip licensing practices did not violate the Sherman Act and that its exclusive dealing agreements with Apple did not substantially foreclose competition. The class was erroneously certified under a faulty choice of law analysis because differences in relevant state laws swamped predominance. California’s choice of law rules precluded the district court’s certification of the nationwide Rule 23(b)(3) class because other states’ laws, beyond California’s Cartwright Act, should apply. As a result, common issues of law did not predominate in the class as certified. View "Stromberg v. Qualcomm, Inc." on Justia Law

In 2010, AMN Healthcare contracted with Aya Healthcare to provide travel nursing services to healthcare facilities. The contract prohibited Aya from soliciting AMN’s employees. In 2015, Aya began actively soliciting AMN’s travel nurse recruiters. AMN temporarily terminated Aya’s access to AMN’s platform. The parties ended their relationship. Aya filed suit under the Sherman Antitrust Act, 15 U.S.C. 1, 2, including a “per se” claim and a quick-look/rule-of-reason claim and claims for attempted monopolization and monopolization, and state law tortious interference and other claims. Aya claimed that it suffered exclusionary damages as a result of AMN’s non-solicitation covenant and retaliatory damages as a result of AMN’s termination of the relationship.The Ninth Circuit affirmed summary judgment in favor of AMN. The non-solicitation agreement is an ancillary, rather than a naked restraint, because it is reasonably necessary to the parties’ procompetitive collaboration; it is not per se unlawful but is subject to the rule-of-reason standard. Aya failed to satisfy its initial burden under that standard because it did not establish a triable issue of fact with respect to whether AMN’s nonsolicitation agreement has a substantial anticompetitive effect that harms consumers in the relevant market. Aya’s claim for retaliatory damages failed because it did not present any evidence of a cartel or a concerted action in the termination of the agreement. View "Aya Healthcare Services, Inc. v. AMN Healthcare, Inc." on Justia Law

The Ninth Circuit affirmed the district court's dismissal, based on lack of subject matter jurisdiction, of Axon's action alleging that the FTC's administrative enforcement process violated the company's constitutional rights. In this case, the FTC investigated and filed an administrative complaint challenging Axon's acquisition of a competitor, demanding that Axon spin-off its newly acquired company and provide it with Axon's own intellectual property. The district court dismissed the complaint after determining that the FTC's statutory scheme requires Axon to raise its constitutional challenge first in the administrative proceeding.The panel held that the Supreme Court's Thunder Basin trilogy of cases mandates dismissal. The panel explained that the structure of the Federal Trade Commission Act suggests that Congress impliedly barred jurisdiction in district court and required parties to move forward first in the agency proceeding. Because the FTC statutory scheme ultimately allows Axon to present its constitutional challenges to a federal court of appeals after the administrative proceeding, the panel concluded that Axon has not suffered any cognizable harm. Therefore, the panel joined every other circuit that has addressed a similar issue in ruling that Congress impliedly stripped the district court of jurisdiction. View "Axon Enterprise, Inc. v. Federal Trade Commission" on Justia Law

The FTC alleged that Qualcomm violated the Sherman Act by unreasonably restraining trade in, and unlawfully monopolizing, the code division multiple access (CDMA) and premium long-term evolution (LTE) cellular modem chip markets.The Ninth Circuit vacated the district court's judgment, and reversed the district court's permanent, worldwide injunction prohibiting several of Qualcomm's core business practices. The panel noted that anticompetitive behavior is illegal under federal antitrust law, but that hypercompetitive behavior is not. The panel explained that its role was to assess whether the FTC has met its burden under the rule of reason to show that Qualcomm's practices have crossed the line to "conduct which unfairly tends to destroy competition itself." The panel concluded that the FTC has not met its burden.The panel held that Qualcomm's practice of licensing its standard essential patents (SEPs) exclusively at the original equipment manufacturers (OEM) level does not amount to anticompetitive conduct in violation of section 2 of the Sherman Act, as Qualcomm is under no antitrust duty to license rival chip suppliers; Qualcomm's patent-licensing royalties and "no license, no chips" policy do not impose an anticompetitive surcharge on rivals' modem chip sales; rather, these aspects of Qualcomm's business model are "chip-supplier neutral" and do not undermine competition in the relevant antitrust markets; Qualcomm's 2011 and 2013 agreements with Apple have not had the actual or practical effect of substantially foreclosing competition in the CDMA modem chip market; and because these agreements were terminated years ago by Apple itself, there is nothing to be enjoined. View "Federal Trade Commission v. Qualcomm Inc." on Justia Law

The Ninth Circuit reversed the district court's dismissal of an antitrust action brought by a putative class of residential and commercial subscribers to DirecTV's NFL Sunday Ticket. NFL Sunday Ticket is a bundled package of all NFL games available exclusively to subscribers of DirecTV's satellite television service. Plaintiffs claimed that DirecTV's arrangement harms NFL fans because it eliminates competition in the market for live telecasts of NFL games.The panel held that, at this preliminary stage, plaintiffs have stated a cause of action for a violation of Sections 1 and 2 of the Sherman Act that survives a motion to dismiss. In this case, the complaint adequately alleged that DirecTV conspired with the NFL and the NFL Teams to limit the production of telecasts to one per game, and that plaintiffs suffered antitrust injury due to this conspiracy to limit output. The complaint also alleged that defendants conspired to monopolize the market for professional football telecasts and have monopolized it. View "Ninth Inning, Inc. v. DirecTV" on Justia Law

The Ninth Circuit reversed the district court's dismissal of the Commission's enforcement action against Monex for alleged fraud in precious metals sales.The panel held that the actual delivery exception to the Commodity Exchange Act (CEA) was an affirmative defense on which the commodities trader bears the burden of proof. Furthermore, "actual deliver" unambiguously requires the transfer of some degree of possession or control. Furthermore, it was possible for this exception to be satisfied when the commodity sits in a third-party depository, but not when, as here, metals are in the broker's chosen depository, never exchange hands, and are subject to the broker's exclusive control, and customers have no substantial, non-contingent interests. Therefore, because this affirmative defense did not, on the face of the complaint bar the Commission from relief on Counts I, II, and IV, the district court erred in dismissing those claims.The panel also held that, by its terms, section 6(c)(1) of the CEA applies broadly to commodities in interstate commerce, and the Commission may sue for fraudulently deceptive activity, regardless of whether it was also manipulative. Furthermore, when someone violates section 6(c)(1), the Commission can bring an enforcement action. The panel accepted as true the Commission's well-pleaded complaint and held that its claims were plausible, remanding for further proceedings. View "U.S. Commodity Futures Trading Commission v. Monex Credit Co." on Justia Law

The Ninth Circuit affirmed the district court's order entering a preliminary injunction freezing all of defendants' assets in connection with Consumer Defense Global's loan modification business operations. The Commission filed suit alleging that defendants violated the Federal Trade Commission Act and Regulation O, 12 C.F.R. Part 1015 – Mortgage Assistance Relief Services. In this case, the parties agree that the FTC brought the instant action pursuant to the second proviso of Section 13(b) of the FTC Act, but dispute whether the FTC was required to demonstrate a likelihood of irreparable harm to obtain relief.The panel held that, although in the ordinary case a showing of irreparable harm is required to obtain injunctive relief, no such showing is required when injunctive relief is sought in conjunction with a statutory enforcement action where the applicable statute authorizes injunctive relief. Therefore, the panel held that the district court did not err by granting the motion for preliminary injunction without requiring the FTC to make the traditional showing of irreparable injury. View "FTC v. Consumer Defense, LLC" on Justia Law

The Ninth Circuit affirmed the district court's dismissal of an action brought by consumers and purchasers of beer under section 7 of the Clayton Act, seeking to enjoin Anheuser-Busch from acquiring SAB. The DOJ required, as a condition of approving the transaction, that SAB divest entirely its domestic beer business.The panel held that plaintiffs failed to state a claim under section 7, because the divestiture left SAB without a presence in the U.S. beer market and thus plaintiffs did not and could not plausibly allege that Annheuser-Busch's acquisition of SAB would substantially lessen competition in that market. The court also held that the district court did not abuse its discretion in dismissing the complaint with prejudice. View "DeHoog v. Anheuser-Busch" on Justia Law

The Ninth Circuit affirmed the district court's dismissal of an action alleging that USATF and the Olympics Committee engaged in an anticompetitive conspiracy in violation of antitrust law when it imposed advertising restrictions during the Olympic Trials for track and field athletes. The panel held that the Olympics Committee and USATF were entitled to implied antitrust immunity on the basis that their advertising restrictions were integral to performance of their duties under the Ted Stevens Olympic and Amateur Sports Act. The panel noted that an injunction preventing enforcement of the advertisement regulation would open the floodgates to potential advertisers, some of which might enhance the Olympic brand and some of which might devalue the Olympic brand. View "Gold Medal LLC v. USA Track & Field" on Justia Law

The Ninth Circuit reversed the district court's grant of summary judgment for CES in a class action alleging that natural gas companies colluded to fix retail natural gas prices in Wisconsin. CES, a wholly owned subsidiary of Reliant, asserted that it acted innocently and without knowledge of its parent company's price-fixing scheme.The panel held that Supreme Court precedent established that a parent and a wholly owned subsidiary always have a unity of purpose and thus act as a single enterprise whenever they engage in coordinated activity. Copperweld Corp. v. Indep. Tube Corp., 467 U.S. 752 (1984). In this case, plaintiffs raised a triable issue of CES's anticompetitive intent; plaintiffs' evidence was sufficient to raise a triable issue of whether CES knowingly acted to further the alleged price-fixing scheme; any knowledge of the alleged price-fixing scheme that CES's directors and officers acquired while concurrently acting as directors or officers of the other Reliant companies was imputable to CES as a matter of Wisconsin law; and plaintiffs submitted sufficient evidence to raise a genuine issue under the Sherman Act – and Wisconsin Statute 133.03(1) – as to whether CES participated in coordinated activity in furtherance of the alleged inter-enterprise price-fixing conspiracy. View "Arandell Corp. v. CenterPoint Energy Services, Inc." on Justia Law