Opinion ID: 2330622
Heading Depth: 1
Heading Rank: 2

Heading: introduction

Text: Before we set forth the pertinent factual and procedural background, a brief review of basic principles governing the relationship between Kansas and federal antitrust law and the types of price-fixing that can occur is in order. Although there are federal antitrust statutes, e.g., the Sherman Act, 15 U.S.C. § 1 (2006) et seq., and a large body of interpreting caselaw, antitrust law has traditionally been the province of the states. McShares, Inc. v. Barry, 266 Kan. 479, 488-89, 970 P.2d 1005 (1998), cert. denied 526 U.S. 1158, 119 S.Ct. 2048, 144 L.Ed.2d 215 (1999) (citing California v. ARC America Corp., 490 U.S. 93, 109 S.Ct. 1661, 104 L.Ed.2d 86 [1989]). In addition, we have noted in the past that federal antitrust law is intended to supplement the remedies available under Kansas law, not to replace Kansas antitrust provisions. 266 Kan. at 488-89, 970 P.2d 1005. Kansas' antitrust law under the KRTA, originally enacted in 1897, remains largely undeveloped; very few cases have reached this court. See Bergstrom v. Noah, 266 Kan. 829, 843, 974 P.2d 520 (1999). We have observed generally that the KRTA is broad in scope but that the bulk of its provisions have not been meaningfully interpreted by Kansas courts. 266 Kan. at 843, 974 P.2d 520. While the KRTA and federal antitrust statutes share some similarities, they are not, in fact, the same. 266 Kan. at 844, 974 P.2d 520. Thus, [w]hile . . . cases [interpreting federal antitrust statutes] may be persuasive authority for any state court interpreting its antitrust laws, such authority is not binding upon any court in Kansas interpreting Kansas antitrust laws. 266 Kan. at 845, 974 P.2d 520. In relation to price-fixing practices specifically, this court concluded more than 50 years ago that it may not substitute [its] judgment for that of the legislature as to whether price fixing is good or bad for the economic life of the state. Quality Oil Co. v. E.I. du Pont De Nemours & Co., 182 Kan. 488, 495, 322 P.2d 731 (1958). It is the role of the legislature, not this court, to set antitrust policy. This case concerns allegations that defendant engaged in price-fixing. Price-fixing may be either vertical or horizontal. Vertical price-fixing involves participants at different rungs of the distribution ladder, e.g., a wholesaler and a retailer. Horizontal price-fixing involves participants who are at the same rung of the distribution ladder, e.g., two or more retailers. See Black's Law Dictionary 1227-28 (8th ed. 2004).