An Update On Motorola Mobility LLC v. AU Optronics Corp. et al.: How Far Does The FTAIA Go?

In Motorola Mobility LLC v. AU Optronics Corp. et al., the Seventh Circuit is currently considering the reach of the Sherman Act beyond United States borders and will join the Second and Ninth Circuits in interpreting some key provisions of the Foreign Trade Antitrust Improvements Act ("FTAIA"). In that case, which will be heard by the Seventh Circuit on a motion for rehearing, the parties have advanced vastly different interpretations of the FTAIA and the extent to which defendants' conduct abroad has impacted the United States market, if at all.

Defendants, foreign manufacturers of liquid crystal display ("LCD") panels, have asserted that the transactions at issue took place entirely in foreign countries, without any impact on U.S. commerce – and, therefore, the Sherman Act cannot govern such foreign conduct. This position was accepted by the United States District Court, which dismissed the case, and a three-judge panel of the Seventh Circuit, which affirmed