Eastman Kodak Co. v. Image Technical Services, Inc., 504 U.S. 451, 45 (1992)

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Cite as: 504 U. S. 451 (1992)

Scalia, J., dissenting

in this case may have implicated truth-in-advertising or other consumer protection concerns, but those concerns do not alone suggest an antitrust prohibition. See, e. g., Town Sound and Custom Tops, Inc. v. Chrysler Motors Corp., 959 F. 2d 468 (CA3 1992) (en banc).

In the absence of interbrand power, a seller's predominant

or monopoly share of its single-brand derivative markets does not connote the power to raise derivative market prices generally by reducing quantity. As Kodak and its principal amicus, the United States, point out, a rational consumer considering the purchase of Kodak equipment will inevitably factor into his purchasing decision the expected cost of after-market support. "[B]oth the price of the equipment and the price of parts and service over the life of the equipment are expenditures that are necessary to obtain copying and micro-graphic services." Brief for United States as Amicus Curiae 13. If Kodak set generally supracompetitive prices for either spare parts or repair services without making an off-setting reduction in the price of its machines, rational consumers would simply turn to Kodak's competitors for photocopying and micrographic systems. See, e. g., Grappone, Inc. v. Subaru of New England, Inc., 858 F. 2d 792, 796-798 (CA1 1988). True, there are—as the Court notes, see ante, at 474-475—the occasional irrational consumers that consider only the hardware cost at the time of purchase (a category that regrettably includes the Federal Government, whose "purchasing system," we are told, assigns foremarket purchases and aftermarket purchases to different entities). But

parts and the service involved in installing them should not be treated as distinct products for antitrust tying purposes. See Jefferson Parish Hospital Dist. No. 2 v. Hyde, 466 U. S. 2, 39 (1984) (O'Connor, J., concurring in judgment) ("For products to be treated as distinct, the tied product must, at a minimum, be one that some consumers might wish to purchase separately without also purchasing the tying product") (emphasis in original) (footnote omitted); Ross, The Single Product Issue in Antitrust Tying: A Functional Approach, 23 Emory L. J. 963, 1009-1010 (1974).

495

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