How can American manufacturers bring claims against foreign
cartels that fix prices of component parts? The answer became more
clear last week. In a widely awaited opinion, Motorola
Mobility LLC v. AU Optronics Corp, the United
States Seventh Circuit Court of Appeals addressed which
purchasers may pursue treble (triple) damage through private civil
actions, under the Sherman Act, based on foreign price
fixing. Governments from around the world, including the United
States, filed amicus briefs in the case because of the
decision's potential far-reaching impact.
The Foreign Trade Antitrust Improvements Act ("FTAIA")
limits the reach of American antitrust laws with two requirements.
In its opinion, the Seventh Circuit assumed the first
requirement—a direct, substantial, and reasonably foreseeable
effect on domestic commerce—was satisfied where the cartel
members sold components to incorporate them into finished products
ultimately sold downstream in the United States.
