Seventh Circuit Denies Motorola’s Request For En Banc Hearing In FTAIA Litigation

Many of you will recall that on March 27, 2014, the Seventh Circuit issued a long-awaited decision concerning the scope of the Foreign Trade Antitrust Improvements Act ("FTAIA") in Motorola Mobility v. AU Optronics. The Seventh Circuit held that the higher prices for mobile phones Motorola sold in the United States did not "give rise to" its foreign subsidiaries' antitrust claims, and that Motorola could not show a "direct" effect on U.S. commerce sufficient to satisfy the FTAIA. Just days after this opinion, Motorola asked for a rehearing. After multiple letters back and forth between the Court, the parties, and the Solicitor General's Office, on July 1, 2014, the Seventh Circuit vacated its prior opinion. Additional briefing is now underway, and is expected to be completed in October.