Definition[]
A tying arrangement is
| “ | an agreement by a party to sell one product but only on the condition that the buyer also purchases a different (or tied) product, or at least agrees that he will not purchase that product from any other supplier.[1] | ” |
Overview[]
A tying arrangement "will violate section 1 of the Sherman Act if ‘the seller has appreciable economic power in the tying product market and if the arrangement affects a substantial volume of commerce in the tied market.'"[2]
| “ | The evil of tying "lies in the seller's exploitation of its control over the tying product to force the buyer into the purchase of the tied product." The tied product market is thereby distorted. Four essential elements must be established to prove an illegal tying arrangement under either a per se or rule of reason theory. They are:
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References[]
- ↑ United States v. IBM Corp., 163 F.3d 737, 738 n.1 (2d Cir. 1998) (citations omitted) (full-text) citing Northern Pac. Ry. Co. v. United States, 356 U.S. 1, 5-6 (1958) (full-text).
- ↑ Id., citing Eastman Kodak Co. v. Image Technical Servs., Inc., 504 U.S. 451, 462 (1992) (full-text).
- ↑ Advanced Computer Serv. v. MAI Sys. Corp., 845 F. Supp. 356, 368 (E.D. Va. 1994) (full-text) cert. dism., 510 U.S. 1033 (1994).