Group boycott

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In competition law, a group boycott is a type of secondary boycott in which two or more competitors in a relevant market refuse to conduct business with a firm unless the firm agrees to cease doing business with an actual or potential competitor of the firms conducting the boycott.[1] It is a form of refusal to deal, and can be a method of shutting a competitor out of a market, or preventing entry of a new firm into a market.

In the United States, such conduct can be held to violate the Sherman Antitrust Act. Depending upon the nature of the boycott, the courts may apply the rule of reason, a quick look analysis, or hold that the boycott is illegal per se. There is a presumption in favor of a rule of reason standard.[2][3] It may also be considered a form of civil conspiracy.

References[edit]

  1. ^ Black's Law Dictionary, 7th ed. 1999
  2. ^ Craftsmen Limousine, Inc. v. Ford Motor Co., vol. 363, May 5, 2004, p. 772, retrieved 2019-01-14, The United States Supreme Court has set forth three methods for analyzing the reasonableness of a restraint on trade: rule of reason analysis, per se analysis, and quick look analysis. The rule of reason is the 'prevailing standard'...
  3. ^ Gurnick, David (1 Sep 2011). Distribution Law of the United States. Juris Publishing, Inc. p. 136-137.

See also[edit]