Foreign Trade Antitrust Improvements Act: When Do U.S. Antitrust Laws Apply to Foreign Conduct?

Trial and appellate courts continue to wrestle with the proper application of the Foreign Trade Antitrust Improvements Act (FTAIA), focusing specifically on the law’s requirement that anti-competitive conduct occurring in foreign jurisdictions have a “direct, substantial, and reasonably foreseeable effect” on U.S. commerce in order to be targeted for government enforcement actions and private civil treble damage actions under the U.S. Sherman Act.

These court decisions create gray areas for counsel representing purchasers of component parts from global supply chains. Questions regarding the scope of the indirect purchaser rule, whether component parts should be purchased directly through U.S. corporations, and whether U.S. manufacturers should operate through foreign subsidiaries all come into play.

Listen as our authoritative panel discusses the growing body of FTAIA case law and the anticipated impact for businesses purchasing from global supply chains.

1. Recent FTAIA case law developments
2. Current gray areas/open questions
3. Best practices for purchasers from global supply chains to minimize antitrust risks

The panel will review these and other key issues:

• How have the various Courts of Appeals recently addressed the applicability of the FTAIA to foreign conduct? What gray areas do the rulings create for counsel?
• When can purchasers of price-fixed component parts shipped into the U.S. pursue private civil treble damage actions under the U.S. Sherman Act?
• What factors should U.S. manufacturers consider in deciding whether to operate through foreign subsidiaries and whether those subsidiaries should purchase component parts from foreign suppliers?