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ARTICLE · 20 MARCH 2014

State Action Doctrine At The Supreme Court: Take Two

After years of declining to clarify what types of state action are exempt from federal antitrust scrutiny, the Supreme Court heard its second case on the subject.

United StatesAntitrust/Competition Law

The Supreme Court has a renewed interest in the state action doctrine. After declining to clarify what types of state action are exempt from federal antitrust scrutiny for years, the Supreme Court agreed to hear its second case on the subject.

In February 2013, the Supreme Court issued its decision in FTC v. Phoebe Putney Health System, Inc., 133 S. Ct. 1003 (2013), which reined in the state action antitrust immunity doctrine by reiterating that the immunity applies only when the state legislature has "clearly articulated and affirmatively expressed" a policy displacing competition, and holding that a state's grant of general corporate powers is not enough to meet the "clear articulation" standard.1 The Phoebe Court did not address the second prong of the state action immunity test, which requires that a state policy displacing competition be "actively supervised" by the state, but only if the party asserting immunity is a private entity rather than a municipality or

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