Document: 45 L.Ed.2d 177 95 S.Ct. 2150 422 U.S. 271 UNITED STATES, Appellant,v.AMERICAN BUILDING MAINTENANCE INDUSTRIES. No. 73—1689. Argued April 22, 1975. Decided June 24, Syllabus The Government brought this civil antitrust action against appellee, one of the largest suppliers janitorial services in country, with 56 branches serving more than 500 communities United States and Canada, providing about 10% such service sales Southern California, contending that appellee's acquisition two California firms (the Benton companies), which supplied 7% violated § 7 Clayton Act. That section provides '(n)o corporation engaged commerce shall acquire . stock or other share capital no subject to jurisdiction Federal Trade Commission assets another also commerce, where any line effect may be substantially lessen competition, tend create a monopoly.' companies, some whose customers interstate operations, performed all their within locally recruited labor (which accounted for major expenses) purchased incidental equipment supplies. District Court granted motion summary judgment, holding there had been violation. contends 'engaged commerce' as used encompasses corporations like companies intrastate activities affect event companies' were sufficiently come 7. Held: 1. phrase Act means flow was not intended reach federal power; hence, does encompass affecting can applicable only when both acquiring acquired are commerce. Pp. 275-283. (a) jurisdictional requirements cannot satisfied merely by showing allegedly anticompetitive acquisitions Gulf Oil Corp. v. Copp Paving Co., 419 186, 392, 42 378; FTC Bunte Bros., 312 349, 61 580, 85 L.Ed. 881. 276-277. (b) precise 'in language is coextensive power under Commerce Clause thus equated 1 Sherman reaches impact conduct on 277-279. (c) When Congress re-enacted 1950 same limitation, long since become term art, indicating limited assertion jurisdiction, prior time frequently distinguished between broader 'affecting commerce.' 279-281. (d) Limiting its plain meaning comports enforcement policies Justice Department have consistently pursued. 281-282. 2. Since did participate directly sale, purchase, distribution goods they And neither supplying local nor using bought supplies manufactured outside sufficed satisfy 7's requirement. 283-286. 2 401 F.Supp. 1005, affirmed. 3 Bruce B. Wilson, Dept. Justice, Antitrust Div., Washington, D.C., appellant. 4 Marcus Mattson, Los Angeles, Cal., appellee. 5 Mr. STEWART delivered opinion Court. 6 commenced Central American Building Maintenance Industries, Act, 38 Stat. 731, amended, 15 U.S.C. 18, J. E. Management Corp., merging Co. into wholly owned subsidiaries. Following discovery proceedings submission memoranda affidavts parties, violation an appeal Court, we noted probable jurisdiction. 1104, 773, 799.1 * Canada. It single supplier southern area comprising Orange, San Bernardino, Riverside, Santa Barbara, Ventura Counties), approximately area. 8 Both California.2 Together constituted total Although serviced maintenance contracts those entirely California. Neither advertised nationally, use communications facilities business negligible.3 9 expense cost necessary perform work. unskilled workers needed supply from market utilized services, except concededly insignificant amounts, distributors.4 10 unquestioned actively But basis above facts concluded at challenged merger Accordingly, held law. 11 Government's raises questions: First, commerce? Second, if requires proof actual engagement sufficient standard? II 12 Section pertinent part: 13 'No acquire, indirectly, whole part 14 Under explicit 7, therefore, must commerce,' but commerce.'5 distinct observed earlier Term, 'appears denote persons commerce—the practical, economic continuity generation interstater markets transport consumer. If so, (§ 7) 195, 398, 378. even unambiguous support construction narrow enacted found decision 16 In required determine scope 719, 45, authorized proceed 'unfair methods competition squarely Commission's unfair occurring contention should read it meant emphatically rejected: 'The urged would give agency pervasive control over myriads businesses matters heretofore traditionally left custom An inroad upon conditions standards far-reaching import involved here, ought await clearer mandate Congress.' U.S., 354—355,6 583. 17 not, course, necessarily uniform whenever Congress. See, e.g., Kirschbaum Walling, 316 517, 520—521, 62 1116, 1118, 86 1638. Bros. particularly relevant proper interpretation sections 63d Congress, designed deal closely related aspects problem—the protection free fair Nation's marketplaces. See Raladam 283 643, 647 648, 51 587, 590, 75 1324. 18 argues, however, despite basic identity interpreted mean activity constitutional legislative history contends, demonstrates congressional Clause. Moreover, argument continues, supplement arrest creation trusts monopolies incipiency, I. du Pont de Nemours & 353 586, 589, 77 872, 875, 1057 anomalous, light purpose, hold Act's restricted 19 certainly true has 'Congress wanted go utmost extent Constitutional restraining trust monopoly agreements ..' South-Eastern Underwriters Assn., 322 533, 558, 64 1162, 1176, 88 1440. applied which, although themselves Mandeville Island Farms, Inc. Crystal Sugar 334 219, 68 996, 92 1328; Employing Plasterers 347 74 452, 98 618. likewise persuasive. 20 Unlike language, 26 209, 1, prohibits every contract, combination, conspiracy restraint trade among several keyed effects goods.' 194, 398. No similar concern evident requirements. 21 anomalous strengthened laws curing perceived deficiencies remedial provisions founders express Thus, proscribes whether entered natural person, partnership, corporation, form organization, explicitly corporate acquisitions. Yet surely could seriously argued 'anomaly' ignored, extended partnership assets.7 There justification concluding equally limitation disregarded. 22 More importantly, enacting 1914 exercise fully regulate whatever understanding power, fact 1950, Schechter States, 295 495, 55 837, 79 1570, example, drawn sharp distinction Id., 542—544, S.Ct., 848. Similarly, Court's NLRB Jones Laughlin Steel 301 57 615, 81 893, years later, emphasized authority actually well affected 1941 stressed 'affected limiting 23 well, repeatedly acknowledged recognition legislation full so cover 10(a) National Labor Relations 49 453, 29 160(a), empowered Board prevent person engaging practice 2(7) 450, 152(7), turn, defined burdening obstructing Bituminous Coal 1937, c. 127, 50 72, fixing prices bituminous coal, proscription practices, establishment marketing procedures, transactions coal.' 76. 24 marked contrast broad statutes, retained narrower formulation amended 1950. amendments large 'plug loophole' existed initially 1914, expanding coverage include assets, stock. addition, make section's prohibitions. Brown Show 370 294, 311—323, 82 1502, 1516, 510. Yet, sweeping changes made effectuate purposes, decisions regulatory legislation, preserved requirement 25 This disregarded, it, simply result inattention, aware original newly versions H.R.Rep.No.1191, 81st Cong., 1st Sess., 5—6. Rather, re-enact rationally explained terms intent, least apply rather drastic prohibitions range potentially power. Finally, undermine purpose belied past policy Justice—the governmental agencies charged enforcing §§ 11, 15, 21(a), 25. applies E.g., Foremost Dairies, Inc., 60 F.T.C. 944, 1068—1069; Beatrice Foods 67 473, 730—731; Mississippi River Fuel 813, 918. while explains never taken formal position concede previous cases invariably clearly commerce.8 consistent practice, difficult credit frustrated construing literally twice-enacted 27 sum, supports expansion beyond language. III 28 alternatively argues placed them flow. To relies primarily substantial portion enterprises selling products international communication facilities.9 localized itself production, distribution, At merger, completely insulated direct participation services. firms' independent pricing concerning own products. Consequently, ambit Clause, Cf. 227—235,10 1001. 30 purchase located States. F.T.C., 1068—1069. distributors. Once again, justice poorly served.' intermediaries. By supplies, ceased. 542 543,11 31 short, Act.12 properly case 32 judgment 33 Judgment 34 WHITE, concurring. 35 I concur Parts opinion. do join Part III, doubt interposition wholesaler distributor out-of-state manufacturers because buy negligible amount For purposes statute, regular movement manufacturer then retailer institutional consumer arguably place latter stream appears complaint filed, cf. Penn-Olin 378 158, 168, 84 1710, 1715, 775 (1964), 'local' being subsidiary company, national admittedly case, makes opposed theory. therefore inappropriate address issue time; record, 36 DOUGLAS, whom BRENNAN joins, dissenting. 37 reasons set forth my dissenting 204— 207, 403, (1974), decided agree statute standard et seq. On record question reverse below remand further BLACKMUN, 39 believe extend having dissent. me, given given, just Robinson-Patman (1974). 40 quarter century construed broadly proscribe restraints 234, 1328 (1948); 1440 (1944). 'arrest incipiency' lessening competition. (1957). ascribe intent less supplementation protections afforded highly and, seems unwarranted. limited, limits today, appealed pursuant Expediting 823, 29. notice filed February 1974, before effective date recent Procedures Penalties Pub.L. 93—528, 1710. Jess Benton, Jr., 85% addition conducted real estate provided building management exclusively claim nonjanitorial bearing issues presented case. telephone calls during 18-month period merger. charges $19.78. During sent received 200 letters, number either directed Internal Revenue Service. many Benton's purchases 16-month amounted $140. 'Commerce,' 12, 'trade foreign nations recently acted provide 'clearer mandate,' amending replacing 5, 6, Magnuson-Moss Warranty—Federal Improvement 201, 2193, (1970 ed., Supp. IV). specifically expand H.R.Rep.No.93 1107, pp. 29—31 (1974); U.S.Code Cong. Admin.News 1973, p. 7702. forbids partnerships, corporations. 724—727. is, established violate technically Shoe 384 316, 320—321, 1501, 1504, 587; Sperry Hutchinson 405 233, 898, 170. We occasion now us decide application noncorporate entities constitutes appropriate need consider 5. n. supra. generally Oppenheim, Guides Harmonizing Acts, 59 Mich.L.Rev. 821; Reeves, Toward Coherent Policy: Role Price Discrimination Regulation, B.C.Ind. Com.L.Rev. 151, 167—171. Despite concession, somewhat inconsistently present involve departure pattern. past, asserts, 'essentially Von's Grocery 270, 1478, 555 cited example challenge. expressly grocery chains participated each 51% 233 976, 978. County Bank, D.C.Vt., 339 85, policy, sole quite different here issue—whether 'Bennington area' 'section country' derived 80% 90% revenues performance Angeles Mobil Rockwell International Teledyne, Pacific Telephone Telegraph notes servicing buildings produced covered Fair Standards employees production 1638; Martino Michigan Window Cleaning 327 173, 66 379, 90 603. reasoned: 'Without heat tenants engage, do, safe, habitable indispensable activity.' 524, 1120. essential operations they, too, considered confined, relied Government, 'an employee deemed (for commerce) employed producing, manufacturing, mining, handling, transporting, manner working goods, process occupation thereof 1938, 3(j), 52 1061, 203(j) (1946 ed.) (emphasis added). who markets, nonetheless it. constitutionally comparable roughly termed Circuit supra, suggest distributors argue commerce—an our sale 'necessarily' involves communications, solicitations, negotiations, viewed merits considered, finding obtained through solicitation negotiation.

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