Antitrust Laws

Antitrust Laws



Antitrust Laws

The case of United States versus Flamingo Industries (USA) LTD. Et al, argued on December 1, 2003 and decided in February 25, 2004, is one the most intriguing and involving antitrust claims. The lawsuit was filed by the Flamingo Industries after the United Postal Service terminated their contract for providing mail sacks. After the termination, the company sued the government owned service claiming, the reason for contract termination was in order to create a monopoly in the production of sacks thus reducing competition. The District Court ruled in favor of the Postal Service stating that it was not subject to liability under the Federal Antitrust Laws (SUPREME COURT OF THE UNITED STATES STAFF, 2004). The reasoning supporting this ruling was that the Postal service was government owned thus could not be held liable or accused of retracting the contract due to antitrust laws or ambitions thus it was granted immunity.

 The ruling was fair and reasonable and served the intended consumer. This is because the antitrust laws are made for privatized organizations and companies but governmental entities are offered limited immunity depending on the charges forwarded. The most interesting part about this case was the presentation of the clauses from the constitution in support of Postal Service thus refuting the charges. Using the clause on Antitrust Laws from the Sherman Act where it mentions the word ‘person’ to represent privatized organizations, the forwarded argument was that the United States could not be categorized as a person. This is because it would bring terrible damages claim for its own alleged antitrust injuries.( SUPREME COURT OF THE UNITED STATES STAFF, 2004)  If asked to handle this case, I would seek to determine the valid reasons why the Flamingo’s contract was cancelled and the valid reasons provided by the government officials. The findings provided would allow me to form a stronger case whether the clients was accused falsely or not.



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