Eastman Kodak Co. v. Image Technical Services, Inc., 504 U.S. 451, 30 (1992)

Page:   Index   Previous  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

480

EASTMAN KODAK CO. v. IMAGE TECHNICAL SERVICES, INC.

Opinion of the Court

III

Respondents also claim that they have presented genuine issues for trial as to whether Kodak has monopolized, or at-make such a policy decision, there is no support for it in our jurisprudence or the evidence in this case.

Even assuming, despite the absence of any proof from the dissent, that all manufacturers possess some inherent market power in the parts market, it is not clear why that should immunize them from the antitrust laws in another market. The Court has held many times that power gained through some natural and legal advantage such as a patent, copyright, or business acumen can give rise to liability if "a seller exploits his dominant position in one market to expand his empire into the next." Times-Picayune Publishing Co. v. United States, 345 U. S. 594, 611 (1953); see, e. g., Northern Pacific R. Co. v. United States, 356 U. S. 1 (1958); United States v. Paramount Pictures, Inc., 334 U. S. 131 (1948); Leitch Mfg. Co. v. Barber Co., 302 U. S. 458, 463 (1938). Moreover, on the occasions when the Court has considered tying in derivative aftermarkets by manufacturers, it has not adopted any exception to the usual antitrust analysis, treating derivative aftermarkets as it has every other separate market. See International Salt Co. v. United States, 332 U. S. 392 (1947); International Business Machines Corp. v. United States, 298 U. S. 131 (1936); United Shoe Machinery Corp. v. United States, 258 U. S. 451 (1922). Our past decisions are reason enough to reject the dissent's proposal. See Patterson v. McLean Credit Union, 491 U. S. 164, 172-173 (1989) ("Considerations of stare decisis have special force in the area of statutory interpretation, for here, unlike in the context of constitutional interpretation, the legislative power is implicated, and Congress remains free to alter what we have done").

Nor does the record in this case support the dissent's proposed exemption for aftermarkets. The dissent urges its exemption because the tie here "does not permit the manufacturer to project power over a class of consumers distinct from that which it is already able to exploit (and fully) without the inconvenience of the tie." Post, at 498. Beyond the dissent's obvious difficulty in explaining why Kodak would adopt this expensive tying policy if it could achieve the same profits more conveniently through some other means, respondents offer an alternative theory, supported by the record, that suggests Kodak is able to exploit some customers who in the absence of the tie would be protected from increases in parts prices by knowledgeable customers. See supra, at 475-476.

At bottom, whatever the ultimate merits of the dissent's theory, at this point it is mere conjecture. Neither Kodak nor the dissent have provided

Page:   Index   Previous  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: October 4, 2007