AAI Opposes Cost-Based Test for Market-Share Rebates (ZF Meritor v. Eaton Corp.)

AAI filed an amicus brief in the Third Circuit urging the court to reject the argument that an antitrust plaintiff challenging a monopolist’s “market share” rebates that foreclose rivals must establish that the monopolist’s prices are below cost. AAI argued that “first dollar” rebates conditioned on customers purchasing a high share of their requirements from a dominant firm should be analyzed as exclusive dealing arrangements, and not like predatory pricing. AAI’s brief was written by Rick Brunell, AAI’s Director of Legal Advocacy, with the assistance of Michael Tarringer of the Cafferty Faucher firm.