FTC Flushes McWane In A Big Eleventh Circuit Exclusive Dealing Win

The situations where exclusive dealing policies, explicit or tied to an aggressive discounting program, cross the line under the rule-of-reason remain far from clear. Because it involved appellate review of a Federal Trade Commission ("FTC" or the "Commission") ruling — where deference to the agency on certain findings played an important part — the Eleventh Circuit's April 15th decision upholding the FTC's ruling that McWane, Inc. ("McWane") enforced an illegal exclusive dealing policy requiring distributors to purchase all of their domestic ductile iron pipe fittings from McWane (or face losing all rebates and being without supply for 12 weeks) provides important guideposts. The Court held that McWane's program prevented international competitors from entering the domestic market, effectively maintained McWane's monopoly on domestic fittings, and affirmed the FTC's order on all counts.