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ARTICLE · 16 APRIL 2014

McWane Dismissal Breaks FTC’s "Winning Streak," But Enforcement Implications Are Unclear

The FTC dismissed six of the seven unfair competition claims it brought under Section 5 of the Federal Trade Commission Act against McWane, Inc.

United StatesAntitrust/Competition Law

On Feb. 6, 2014, the Federal Trade Commission dismissed six of the seven unfair competition claims it brought under Section 5 of the Federal Trade Commission Act against McWane, Inc., the leading domestic producer of iron pipe fittings in the United States. In its January 2012 complaint, the FTC alleged that McWane conspired with its two primary competitors to fix prices for certain small- and medium-diameter iron pipe fittings (three counts), and that it unlawfully maintained its monopoly power by trying to keep a competitor out of a narrower market for domestically produced fittings (four counts). FTC Administrative Law Judge D. Michael Chappell initially dismissed the FTC's collusion claims after finding no evidence of price fixing, but ruled in the FTC's favor with respect to its monopolization claims. Both parties appealed the ALJ's decision to the full Commission. Despite harsh criticism from certain commissioners that the ALJ's findings as to price fixing were

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