Court Opinion

ID: 9471777
Source: CourtListenerOpinion
Date Created: 2023-08-05 03:41:03.547325+00
Date Added: 2024-06-11T17:42:34.724057
License: Public Domain

BRIGHT, Circuit Judge,
with whom HEANEY, Circuit Judge, joins, dissenting.
The majority in this case, with some hesitation and a degree of uncertainty, permits a monopolist to destroy hundreds of independent businesses. What a sad day for the American ideal that permits every person on his or her own initiative to own and operate a small business.
A monopolist may, in some circumstances, justify the gobbling-up of independent enterprises, where the consumer will benefit and increased efficiencies or greater competition will result. But the record here reflects no such justification.
Congress enacted the antitrust laws “to promote competition through the protection of viable, small, locally owned businesses.” Brown Shoe Co. v. United States, 370 U.S. 294, 344, 82 S.Ct. 1502, 1534, 8 L.Ed.2d 510 (1962). The proposed action of the Kansas City Star, which the majority today approves, will destroy the currently independently owned distributorships. I would hold that a monopoly may not integrate vertically by refusing to deal further with its independent distributors unless that monopoly demonstrates that lower transactions costs or greater production economies will result. Any proposed integration must be “a good faith effort to do business in *707more efficient ways.” Auburn News Co., Inc. v. Providence Journal Co., 659 F.2d 273, 278 (1st Cir.1981), cert. denied, 455 U.S. 921, 102 S.Ct. 1277, 71 L.Ed.2d 461 (1982).
The record in this case fails to support the Star’s claim that newspaper distribution would be more efficient were it to integrate vertically. The Star failed to establish that it would distribute its newspapers more economically than do the independent retailers. Any eventual enhancement of the Star’s profits, then, would probably derive from price increases rather than from cost reductions. The Star has not shown justification for its proposed vertical integration of distribution.
I dissent. I would affirm the district court and save these independent distributorships.