FTAIAForeign Trade Antitrust Improvements Act
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Because the antitrust activities originated abroad, all parties seeking to bring suit must fit their cases within the confines of the Foreign Trade Antitrust Improvements Act (FTAIA).
(19) The Ninth Circuit affirmed the convictions and sentences, sustaining that the FTAIA was inapplicable because the defendants engaged in import trade.
(13) The District Court granted summary judgment for the defendants, holding that Motorola had failed to satisfy the FTAIA. Motorola appealed the judgment to the Seventh Circuit.
Posner previously took a similar stand in another ruling in the case, saying on March 27 that Motorola could not bring a case under the FTAIA because only 1 percent of the price-fixed goods in question were bought by and delivered to the U.S., while "the other 99 percent were bought by, paid for, and delivered to its foreign subsidiaries." He also said that any direct effect on U.S.
[section][section] 1,2, including: whether the restrictions Congress has imposed on antitrust claims based on foreign conduct under the Foreign Trade Antitrust Improvements Act ("FTAIA"), 15 U.S.C.
Empagran once again involved an interpretation of the FTAIA, which requires (1) a "direct, substantial and reasonably foreseeable effect" on domestic commerce in the United States that (2) gives rise to a Sherman Act claim.
(236) 2011 Harvard Law Review Association, supra note 232, at 1275 ("Such a link, the Court reasoned, would satisfy the FTAIA's effects test by showing that the anticompetitive conduct was not 'significantly foreign,' but exercising jurisdiction in the absence of linked domestic effects would mark an extraterritorial 'extension of the Sherman Act's scope.").
(15) The appeals court agreed with the district court that the FTAIA applied, but held that these activities affected domestic commerce, thereby bringing these activities under an exception to the FTAIA.
In 1982, Congress passed the Foreign Trade Antitrust Improvements Act (FTAIA), clarifying that U.S.