State Oil Co. v. Khan, 522 U.S. 3, 11 (1997)

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Cite as: 522 U. S. 3 (1997)

Opinion of the Court

price dictation might have in other cases," even as it rejected evidence that the publisher's practice of fixing maximum prices counteracted potentially anticompetitive actions by its distributors. Id., at 165. Justice Stewart also dissented, asserting that the publisher's maximum price fixing scheme should be properly viewed as promoting competition, because it protected consumers from dealers such as Albrecht, who, as "the only person who could sell for home delivery the city's only daily morning newspaper," was "a monopolist within his own territory." Id., at 168.

Nine years later, in Continental T. V., Inc. v. GTE Sylvania Inc., 433 U. S. 36 (1977), the Court overruled Schwinn, thereby rejecting application of a per se rule in the context of vertical nonprice restrictions. The Court acknowledged the principle of stare decisis, but explained that the need for clarification in the law justified reconsideration of Schwinn:

"Since its announcement, Schwinn has been the subject of continuing controversy and confusion, both in the scholarly journals and in the federal courts. The great weight of scholarly opinion has been critical of the decision, and a number of the federal courts confronted with analogous vertical restrictions have sought to limit its reach. In our view, the experience of the past 10 years should be brought to bear on this subject of considerable commercial importance." 433 U. S., at 47-49 (footnotes omitted).

The Court considered the historical context of Schwinn, noting that Schwinn's per se rule against vertical nonprice restrictions came only four years after the Court had refused to endorse a similar rule in White Motor Co., and that the decision neither explained the "sudden change in position," nor referred to the accepted requirements for per se violations set forth in Northern Pacific R. Co. 433 U. S., at 51- 52. The Court then reviewed scholarly works supporting the economic utility of vertical nonprice restraints. See id.,

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