United States Ninth Circuit

To prove that a bundled discount was exclusionary or predatory for the purposes of a monopolization or attempted monopolization claim under section 2 of the Sherman Act, the plaintiff must establish that, after allocating the discount given by the defendant on the entire bundle of products to the competitive products, the defendant sold the competitive products below its average variable cost of producing them. (Amended opinion)

Appellate Information

• Argued 03/06/2007
• Decided 02/01/2008
• Published 02/01/2008

Judges

• GOULD, Circuit Judge:, Before:  RONALD M. GOULD, RICHARD A. PAEZ, and JOHNNIE B. RAWLINSON, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Jerrold J. Ganzfried, James F. Rill, Scott E. Flick, and Thomas J. Dillickrath, Howrey LLP, Washington, D.C., John Thorne and Paul J. Larkin, Jr., Verizon Communications, Inc., Arlington, VA, Douglas S. Grandstaff, Caterpillar, Inc., Peoria, IL, for amici curiae Verizon Communications Inc. and Caterpillar Inc., Aidan Synnott, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY, for amici curiae law professors Daniel A. Crane, Thomas A. Lambert, Thomas D. Morgan, D. Daniel Sokol, and Richard C. Squire., Michael Barnes, Sonnenschein Nath & Rosenthal LLP, San Francisco, CA, for amicus curiae Catholic Healthcare Association of the United States., Craig E. Stewart and Brian M. Hoffstadt, Jones Day, San Francisco, CA, Sharon Douglass Mayo, Arnold & Porter LLP, San Francisco, CA, for amici curiae Pacific Bell Telephone Co. and Visa U.S.A. Inc., David T. McDonald, Kirkpatrick & Lockhart Preston Gates Ellis LLP, Seattle, WA, for amicus curiae Microsoft Corp., Thomas H. Tongue, Brian R. Talcott, and David P. Rossmiller, Dunn Carney Allen Higgins & Tongue, LLP, Portland, OR, for amicus curiae Pacific Source Health Plans., Michael E. Kipling, Kipling Law Group PLLC, Seattle, WA, for amicus curiae Regence BlueCross BlueShield of Oregon., Jonathan M. Jacobson, Wilson Sonsini Goodrich & Rosati Professional Corporation, New York, NY, Scott A. Sher, Wilson Sonsini Goodrich & Rosati Professional Corporation, Washington, D.C., Deborah L. Galvin, Kraft Foods, Inc., Northfield, IL, Brian R. Henry, The Coca-Cola Company, Atlanta, GA, Debra A. Valentine, United Technologies Corp., Hartford, CT, for amici curiae Genentech, Inc., Honeywell International Inc., Kimberly-Clark Corp., Kraft Foods, Inc., The Coca-Cola Company, and United Technologies Corp., Thomas A. Miller, Robins Kaplan Miller & Ciresi L.L.P., Los Angeles, CA, K. Craig Wildfang and Andrew M. Kepper, Robins Kaplan Miller & Ciresi L.L.P., Minneapolis, MN, David A. Balto, Washington, D.C., for amici curiae American Antitrust Institute, Consumer Federation of America, and Consumers Union.


• For Appellees:
  
• M. Laurence Popofsky, Heather N. Leal, and Adam J. Gromfin, Heller Ehrman LLP, San Francisco, CA, James H. Sneed and Linda M. Holleran, McDermott, Will & Emery, Washington, D.C., Peter H. Glade, Markowitz, Herbold, Glade & Mehlhaf, P.C., Portland, OR, for defendant-appellant and cross-appellee PeaceHealth., Thomas M. Triplett, Kelly T. Hagan, William B. Crow, Nancy M. Erfle, and Michael T. Garone, Schwabe, Williamson & Wyatt, P.C., Portland, OR, Laurence E. Thorp, Thorp, Purdy, Jewett, Urness & Wilkinson, P.C., Springfield, OR, for plaintiff-appellee and cross-appellant Cascade Health Solutions.