Unpacking Antitrust: What Is A Joint Venture?

The Short Answer: Two or more businesses that work together to produce something. Antitrust Law: An Analysis of Antitrust Principles and Their Application (Areeda and Hovenkamp) ("A joint venture is a form of organization in which two or more firms agree to cooperate in producing some input that they would otherwise have produced individually, acquired on the market, or perhaps would have done without.").

Why Does It Matter? Absent a valid joint venture, it is per se unlawful for two competitors to work together to price a product. Per se means that the conduct is unlawful with no opportunity to present a defense that it was actually a good thing.

"The pricing decisions of a legitimate joint venture," however, escape the per se rule. Freeman v. San Diego Ass'n of Realtors, 322 F.3d 1133, 1144 (9th Cir. 2003).