Opinion ID: 747558
Heading Depth: 3
Heading Rank: 2

Heading: Omega's Entry

Text: 69 In 1991, Omega attempted to introduce a new way to deliver petroleum dispensing equipment and services to buyers. It wanted to create a network of distributors and other service providers that could offer prospective buyers one-stop shopping. One advantage to such a network is that it would allow buyers to compare many different brands of products, including retail petroleum dispensers. According to Professor Leffler, Omega's plan offered an ideal way for a new entrant into the retail petroleum dispenser market to distribute its products. 70 Important in this one-stop shopping idea was recruiting distributors who could install the petroleum dispensers and service them over a long period of time. To this end, Omega contacted existing distributors of retail petroleum dispensers. One such distributor joined the Omega network because he believed he could purchase parts from Omega at a very small markup cost ... as opposed to paying fifteen or twenty percent markup. 71 Gilbarco distributors who only carried one line of retail petroleum dispenser became worried about the possible effects of Omega's proposed venture on their businesses. One Gilbarco distributor testified at trial that he did not want to face competition from Omega as a company that could offer more than one line of equipment, charge cheaper prices, and be the Walmart of the industry. This distributor was concerned that Omega distributors would gain sales at his expense by offering more choices to customers and play[ing] one ... manufacturer [of retail petroleum dispensers] off against another to get lower prices. 72 A second Gilbarco distributor wrote a letter to Gilbarco stating the following: I feel that a Gilbarco distributor purchased by Omega should be cancelled immediately. I repeat: They are very dangerous.