Abstract and Keywords
A “squeeze” is an increase in costs that cannot be passed on to consumers. A firm or a group of firms that dominates and that supplies intermediate inputs—credit, goods, or services used for the production of other goods and services—may have the power to impose restrictions on their supply, which in turn could squeeze other firms. Squeeze claims take the position that, by imposing restrictions on the supply of intermediate inputs, the defendant violated antitrust law. The three traditional antitrust squeeze claims are refusal to deal, essential facility, and price squeeze claims. Several old antitrust doctrines, not all of which are valid today or consistent with modern antitrust, supposedly offer remedies to squeeze claims. By contrast, the US Supreme Court is largely reluctant to recognize squeezing as an antitrust violation. This chapter studies and clarifies the law and economics of antitrust squeeze claims.
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