Document: 472 U.S. 585 105 S.Ct. 2847 86 L.Ed.2d 467 ASPEN SKIING COMPANY, Petitionerv.ASPEN HIGHLANDS CORPORATION. No. 84-510. Argued March 27, 1985. Decided June 19, Syllabus Respondent, which owns one of the four major mountain facilities for downhill skiing at Aspen, Colo., filed a treble-damages action in Federal District Court 1979 against petitioner, other three facilities, alleging that petitioner had monopolized market services Aspen violation § 2 Sherman Act. The evidence showed earlier years, when there were only operated by independent companies (including both and respondent), each competitor offered its own tickets daily use an interchangeable 6-day all-Aspen ticket, provided convenience to skiers who visited resort weekly periods but preferred remain flexible about what they might ski day. Petitioner, upon acquiring second original opening fourth, also offered, during most seasons, multiarea ticket covering mountains, eventually outsold petitioner's ticket. Over method allocation revenues from competitors developed into system based on random-sample surveys determine number used mountain. However, 1977-1978 season, respondent, order secure agreement continue sell tickets, was required accept fixed percentage ticket's revenues. When respondent refused lower considerably below historical average usage—for next discontinued sale ticket; instead sold featuring mountains; took additional actions made it extremely difficult package replace joint offering. Respondent's share declined steadily thereafter. jury returned verdict fixing respondent's actual damages, court entered judgment treble damages. Appeals affirmed, rejecting contention cannot be requirement cooperation between competitors, even possesses monopoly powers. Held: 1. Although firm with power has no general duty engage marketing program (and so instructed here), absence unqualified cooperate does not mean every time declines participate particular cooperative venture, decision may have evidentiary significance, or give rise liability certain circumstances. Lorain Journal Co. v. United States, 342 143, 72 181, 96 L.Ed. 162. question intent is relevant offense monopolization determining whether challenged conduct fairly characterized as "exclusionary," "anticompetitive," "predatory." In this case, monopolist did merely reject novel offer venture been proposed competitor, elected make important change pattern distribution originated competitive persisted several years. It must assumed jury, trial court, drew distinction "between practices tend exclude restrict competition hand, success business reflects superior product, well-run business, luck, other," concluded "valid reasons" refusal deal respondent. Pp. 600-605. 2. record, construed favorably support position, adequate under instructions given. properly exclusionary, appropriate examine effect consumers, itself. 605-611. (a) that, over strong demand adversely affected elimination. 605-607. (b) adverse impact established showing extent pecuniary injury, unsuccessful attempt protect itself loss patrons steady decline after terminated. 607-608. (c) relating persuade justified any normal purpose, sought reduce long run harming smaller competitor. That conclusion strongly supported failure efficiency justification whatever conduct. 608-611. 738 F.2d 1509 (CA 10 1984), affirmed. Richard Melvyn Cooper, petitioner. Tucker Karl Trautman, Denver, Justice STEVENS delivered opinion Court. 1 private action, found Skiing Company (Ski Co.) Colorado. presented finding erroneous matter law because rests assumption rivals arrangement avoid violating Act.1 * destination reputation "super powder," "a wide range runs," "active night life," including "some best restaurants North America." Tr. 765-767. Between 1945 1960, investors independently skiing: Mountain (Ajax),2 Highlands (Highlands),3 Buttermilk.4 A fourth mountain, Snowmass,5 opened 1967. 3 development hindered practical considerations regulatory obstacles.6 identification topographical conditions new site substantial financing are essential. Most terrain vicinity suitable purpose without approval States Forest Service. contingent, part, environmental concerns. Moreover, county government approve project, recent years followed policy limiting growth. 4 1958 1964, Ajax, Highlands, Buttermilk. early company day half-day Id., 152. 1962, however, introduced ticket.7 1634. 6-day, vast majority periods, visit. App. 92. emphasized unusual variety mountains available Aspen. 5 As initially designed, consisted booklets containing six coupons, redeemable lift price booklet often discounted all coupons within limited period seven days, example. 3-area coupon books distributed accordance collected 153, 1634-1638. 6 Buttermilk purchased Ski Co., continued. seasons acquired Buttermilk, 2-area, 6- 7-day Ajax 3-area, 6-coupon booklet. briskly, well Co.'s until Snowmass Thereafter, began outsell mountains. Record Ex. LL; 1646, 1675-1676. 7 1971-1972 "around neck" developed. This refinement advantageous skier, longer necessary visit window morning before gaining access slopes. Lift operators monitored usage season recording numbers persons going onto slopes officials periodically met review figures recorded distribute count. 1622, 1639. 8 There some concern should more scientific than season. After one-season absence, 4-area 1973-1974 allocating usage. Like badge worn around skier's neck. punched skier first survey commissioned how many parties allocated sales survey's results. 9 such allocate 4-area, Highlands' 17.5% 1973-1974, 18.5% 1974-1975, 16.8% 1975-1976, 13.2% 1976-1977.8 During these multi-day ticket.9 By 1977, accounted nearly 35% total market. 614, 1367. Holders passes them. 1962 various mixes 1-day, 3-day, their mountains.10 except one, form all-Aspen, divided those basis Nevertheless, if would 11 1976-1977, contended inaccurate measure performance since marked unfavorable weather unusually low visiting skiers.11 wanted divide usage, allowed compete loyalties tickets. 172. Fearing alternative all, hoping reinstate division revenues, accepted 15% Ibid. No two competitors' 12 1970's management increasingly expressed dislike They complained monitoring administratively cumbersome. doubted accuracy decried "appearance, deportment, [and] attitude" college students conducting it. 1627. See id., 398, 405-407, 959. addition, president view siphoning off could recaptured discontinued. 586-587, 950, 960. fact, reinstated one. 613-614. 13 1978, recommended board directors 1978-1979 decided agree receive 12.5% revenue—considerably 396, 585-586. Later member candidly informed official he advocated making "an [it] accept." 361. 14 Finding proposal unacceptable, suggested electronic counting, random sample surveys. 188. If concerned survey, hire disinterested counters expense—"somebody like Price Waterhouse"—to count Highlands. 191. consider counterproposals, finally rejected percentage. 15 far concerned, dead. place effort promote embarked national advertising campaign implied people unfamiliar area. For example, sign changed Airways waiting room Stapleton Airport Denver. old picture touting "Four Big Mountains" whereas retained referred three. 844, 847, 858-859.12 16 pass season,13 either tour operator's discount retail. 327.14 "Adventure Pack," 3-day vouchers, equal vouchers guaranteed funds deposit bank, redeemed merchants full value. 329-334. 17 Later, redesigned Adventure Pack contain American Express Traveler's Checks money orders vouchers. negotiable instruments exchange tickets.15 505, 507, 549. Despite strengths considerable resistance consumers grown accustomed flexibility 784-785, 1041. 18 Without convenient basically "becomes area resort." 1425. abolished 1977: 20.5% 15.7% 1977-1978, 13.1% 1978-1979, 1979-1980, 11% 1980-1981.16 97, 183. associated school, rentals, amateur racing events, restaurant sharply well.17 II 19 1979, complaint Colorado naming defendant. Among claims,18 alleged Act, prayed case tried rendered guilty calculating damages $2.5 million. 187-190. 20 her Judge explained Act elements: (1) possession market, (2) willful acquisition, maintenance, anticompetitive exclusionary means purposes.19 2310. element vigorously disputed Appeals, challenge jury's special possessed power.20 Nor criticize court's concerning offense. 21 On element, "Aspen Corporation willfully acquired, maintained, anti-competitive purposes." 181. elaborated: 22 "In considering purposes you draw here hand other. line legitimately gained monopoly, proper improper described ways. said obtaining maintaining represent maintained honestly industrial. Or thrust due ability constitute monopolization. 23 "For lawfully position barred taking advantage scale economies constructing large efficient factory. These benefits consequence size exercise power. corporation rivals. Also refuses enter operating otherwise manner violate Section valid reasons exist refusal. 24 words, legitimate refusal, then defendant, possess violated law. We unnecessarily excludes handicaps competitors. benefit better product service available—or ways—and impairing competition. 25 "To sum up, gained, arrangements policies rather being sense, historic designed primarily further domination sub-market." 181-182. 26 answered specific interrogatory defined instructions.21 27 motion notwithstanding verdict, contending insufficient motion, incorporated arguments advanced directed contested sufficiency issue Counsel had, course argument time, stated: "Now, we think, Judge, clearly competitors." 1452.22 denied awarding $7,500,000, costs attorney's fees.23 191-192. 28 affirmed respects. (CA10 1984). " 'there present because, law, pro-competitive in.' "24 First, relying Terminal Railroad Assn. St. Louis, 224 383, 32 56 810 (1912), held multiday, "essential facility" jointly F.2d, 1520-1521. Second, sufficient refusing "considered together conduct," create maintain monopoly. 1522. 29 intent, considered record "as whole" prove allegedly act demonstrate abuse 1522, n. 18.25 noted "refusing cooperate" "became multi-mountain experience"; 4-mountain resulted "skiers' frustration unavailability"; apparently reason Pack; modified meet objections, increased single $22 "thereby unprofitable . [the] Pack." 1521-1522. reviewing entitled resolved questions fact favor. III 30 Court, contends conduct, none activities can exclusionary. incorrectly relied facilities" doctrine "anticompetitive intent" transform nonexclusionary response, submits given rely affirm judgment.26 Oral Arg. 34. 31 "The central message entity find customers higher profits through internal expansion—that is, competing successfully arranging treaties Citizens & Southern National Bank, 422 86, 116, 95 2099, 2116, 45 41 (1975). therefore, surely correct submitting quite wrong, suggesting proposition unambiguously possessing Supra, 596-597. transact another respects, counterpart businessman's cherished right select his associates. high value placed refuse firms unqualified.27 33 162 (1951), squarely unqualified. 1933 1948 publisher Journal, newspaper, local disseminating news Ohio town. 1948, small radio station nearby community. destroy thereby regain "pre-1948 mass dissemination advertising," patronized station. S.Ct., 186. 34 holding dispatched same raised here: 35 claims advertisements whomever pleases. do dispute right. 'But word "right" deceptive pitfalls; easy slip qualified meaning premise conclusion. rights qualified.' Bank Trust Bank,[256 350, 358 499, 500, 65 983]. claimed neither absolute nor exempt regulation. Its purposeful monopolizing interstate commerce prohibited operator station, equally protection 'In recognized trader manufacturer engaged entirely freely discretion whom will deal.' (Emphasis supplied.) Colgate 250 300, 307 [39 465, 468, 63 992]. Associated Press 326 1, [65 1416, 1422, 89 2013]; Bausch Lomb 321 707, 721-723 [64 805, 812-814, 88 1024]." U.S., 155, 187. 36 approved entry injunction ordering print 37 "attempt monopolize," monopolization, offenses. former "specific accomplish forbidden objective—as Hand explained, goes beyond mere act." Aluminum America, 148 416, 432 (CA2 1945). latter "exclusionary" "anticompetitive"—to words instructions—or "predatory," scholars seem Whichever label used, "no monopolizes unconscious doing."28 Bork stated recently: "Improper exclusion (exclusion result efficiency) always deliberately intended."29 38 qualification pleases narrow encompasses circumstances Journal. decide, Rather, different 589 7. continued provide desirable option enlarged include character acquisition discloses multimountain areas competitive,30 seems infer satisfy consumer free markets. 39 terminate thus market.31 Such necessarily anticompetitive, decision, implement case. recognizes, us, interpret entire light favorable inferences supports, though contrary reasonably drawn. Continental Ore Union Carbide Carbon Corp., 370 690, 696, 82 1404, 1409, 777 (1962). 40 assume instructions. must, drawn other." 596. Since "does refusal," supra, 597, finds record. IV simply impaired restrictive way.32 "attempting efficiency,"33 fair characterize behavior predatory. accordingly, rival, 42 visitor "is well-educated, relatively affluent, experienced skied times past. ." 764. 80% year before—40% repeat visitors least five times. 768. refinements. logically prefer purchase once whole spend resort; enjoying apres-ski amenities less standing lines. attribute advance while reserving decide flexibility, expanded vistas challenging runs him week's vacation.34 43 While attributes, supports elimination place, 1967 indicated demonstrably 589-590, 592. expert witness testified come want abolition ambition. 775. undertaken 1979-1980 53.7% respondents not; 39.9% choice permit 75, pp. 36-37. 44 Expert testimony anecdotal statistical measures preference. wholesale asserted available.35 came "on very regular basis" attempted lifts join school.36 left explain angry school paying 1-day Even irritating situation wasting refund take entailed forfeit discount.37 An active officer Atlanta Club "infuriated" him. 978. injury. develop substitute buying bulk, Pack, demonstrates providing experience learned expect proved prohibitively expensive. result, award confirms Highlands.38 46 Perhaps significant, itself, purpose. willing forgo contained permitted them bulk. short-run interested reducing 47 conduct.39 defending monitored. evidence, taken operators, among basis.40 cumbersome, takers disruptive work inaccurate. Coupons, burdensome credit cards windows. 330-331. markets participated using 30, supra. manager problems much overemphasized officials, mostly arose. 663-667, 673. explanation rejection hire—at expense—a reputable accounting audit way "control" audit. 598. 48 end, pressed justify desire disassociate from—what inferior 401, 422. matters quality. purported relative quality little vague insinuations, numerous witnesses. admitted associate products 964. 49 'bold, relentless, predatory' publisher's Journal,41 comfortably inference deliberate discourage doing rival. particularly price, deterred holders Highlands.42 motivated accepting cost immediate benefits, satisfied potential customers. Thus concerns sacrifice goodwill perceived long-run rival.43 50 Because record,44 51 Affirmed. 52 WHITE part statute provides, part: "Every person shall monopolize, combine conspire persons, monopolize trade foreign nations, deemed felony. U.S.C. 1946. steep intermediate skiers. base located village 1957, Service "was getting crowded, ought started Highlands." 150. Whipple V.N. Jones, owned lodge discussed project interest, telling "plenty now, don't think expand Aspen." 150-151. Jones went ahead own, laid out well-balanced set runs: 25% beginner, 50% intermediate, advanced. 11/2 miles 154. Respondent provides Mountain. Throughout refer 1958, Friedl Pfeiffer Arthur Pfister developing ranches third Pfeiffer, Olympian, director beginners More approximately 21/4 152, 1471-1472, 1526; Deposition Paul Nitze 6-7. 1960's William Janss, racer, associates Valley, secured permits developer allow facility leaving land site. balanced mixture runs. 14-16; 1475-1476. eight 378-379, 638, 2040-2051, 2069-2070, 2078-2082. developers initiated idea luncheon owner President native Austria, '[i]n Anton, companies. interchangeable.' good lifts; said, 'I thing here.' 153. 167. measured visits 15.8% 17.1% 17.4% 1976-1977. 1975, Attorney General alleging, negotiations forum X. settled consent decree prices unilaterally negotiating terms. 229-231. About 15-20% company's derived 10-15%, 80-85% 623, 1772. 1976-1977 snow year." half (529,800) 1975-1976 (1,238,500) (1,273,400). snow. waited January rest 228. circulated advertisement magazines labeled "Aspen, Mountains, Fun." 184. depicted Snowmass. Buttermilk's erroneously directly 860, 1803. key difference ticket: "with days our mountain; six-day absolutely locked people." 245. "tremendous demand" late publicity rate. 622. negotiations, previously noting "obviously helping sell" 16; 269-270. vice finance told "[w]e anything four-area sponsored Corporation." 335. inquired why pay retail tersely: "we competition." Of course, nothing identify source instruments, unless someone saw "taking envelope." 505. 1981-1982 $114. According structure unprofitable. 535. Mountain, particular, substantially expense BB; 1806. 91; 488, 571-572, 692-694, 698, 701-702. outstanding reputation, outperformed 1822. sent children 560-570, 588. families groups purchasing reluctant enroll beginner leave 571. conspired claim go 189. Grinnell 384 563, 570-571, 1698, 1703-1704, 778 (1966), explained: maintenance distinguished growth acumen, accident." "[d]ownhill resorts," area" geographic submarket, 1977-1981, power, control 187-188. affirmatively: "Willful Acquisition, Maintenance Use Monopoly Power: Do preponderance defendants purposes, accident?" appears argued legal obligation Highlands: compete. decisions. product. determination chooses offer." 1454. validity Thus, occasion combinations industry. generally Collegiate Athletic Board Regents Univ. Okla., 468 85, 113-115, 104 2948, 2966-2968, 70 (1984); Broadcast Music, Inc., Columbia Broadcasting System, 441 18-23, 99 1551, 1561-1564, 60 (1979); T.V., Inc. GTE Sylvania, 433 36, 51-57, 97 2549, 2558-2561, 53 568 (1977). requiring 6-out-of-7-day identical "Ski Summit" Breckenridge Summit County, infra. 589. 3-year period, later extended 1984-1985 stipulation parties. represents "it seek extension injunction." Brief injunctive relief ordered 1516-1517 (quoting brief below). 699, 1410, (1962); 14, 1421, 2013 (1945). contentions questioned relates misused Appeals' conclusion, 1517-1518, raise improperly rested Under "generally deal, likes, independently." Monsanto Spray-Rite 465 752, 761, 1464, 1469, 79 775 307, 992 (1919). fall 2, monopolize. To read passage demanding 'specific,' makes nonsense it, doing. So here, 'Alcoa' meant keep, complete exclusive hold ingot started. 'monopolize' however innocently proceeded." 432. R. Bork, Antitrust Paradox 160 (1978) (hereinafter Bork). participates programs 1970, allows region: Breckenridge, Copper Keystone, Arapahoe Basin. 188, 590, 966, 1070-1081. Keystone Basin operated—had 40% County 30%. 1100. Blackcomb northeast Vancouver, British Columbia, Whistler facility. 369, 873-874. Interchangeable European areas. 7, supra; 720. patterns time; thought develop. persist call optimal patterns. disturbing rival impose another, force costs." 156. cases where applied per se approach invalidity concerted refusals "the boycott cut supply, enable boycotted compete, frequently boycotting dominant market." Northwest Wholesale Stationers, Pacific Stationery Printing 284, 294, 2613, 2619, 202. "Thus, 'exclusionary' comprehends tends impair opportunities rivals, merits way." P. Areeda D. Turner, Law 78 (1978). 138. Superior Quality All-Aspen Ticket "are looking experiences, partly week get bored long; varying skills. need areas, spouses buddies just starting bunny hill not-so-difficult slopes." 765. condominium added: guest coming first-class experience, I expectation perhaps having there; i.e., vs. helps enhance vacation experience." 685. "Our philosophy [Aspen] premier resort, clients terrain. Therefore, never consciously offering three-mountain four-mountain available." 1026. 356, 492, 572, 679, 1001-1002. reported frustrated dentist Des Moines [who] children, board. He became somewhat irate she my office, office out, 'Well, understand can't.' got slowed down well, irritation occurred intended able 356. poorly publicized. 994, 1044, 1053. Ability Compete irrelevant note similar carried --- 2619-2620, Cf. 154, 187, (1951). Business Justification usefully attack predation drive others predator overwhelming size, 80 90 percent. Proof statements officers agents company, threateningly capitulated, related apparent efficiency. proof render test overly hard meet." 157 (emphasis added). system, Revenues 650-651. "would consider" "its fine approximate your company." 599. Service, submission financial information mountain-by-mountain condition issued 643, 945. conceded pretty close" staff. 149, 184 below, 92 F.Supp. 794, 796 (ND 1950)). "[W]hy didn't buy individual Highlands? bought despite affluent—a lot affluent Aspen—they sort managerial types cautious. Certainly comments club talked to—they careful feel—these six-day, three-area giving up spending extra money." 777. conveyed impression 593, 12, consistent sustain judgment. Given amply unnecessary possible relevance doctrine, hypothetical ever If, assumed, doing, unlikely arise.

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