Postal Service v. Flamingo Industries (USA) Ltd., 540 U.S. 736, 3 (2004)

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738

POSTAL SERVICE v. FLAMINGO INDUSTRIES (USA) LTD.

Opinion of the Court

limited than those of private businesses, since it lacks the power unilaterally to set prices or to close a post office, § 404. Its public characteristics and responsibilities indicate it should be treated under the antitrust laws as part of the Government, not a market participant separate from it. The fact that the Postal Service operates some nonpostal lines of business beyond the scope of its mail monopoly and universal service obligation does not alter this conclusion. Pp. 746-748. 302 F. 3d 985, reversed.

Kennedy, J., delivered the opinion for a unanimous Court.

Deputy Solicitor General Kneedler argued the cause for petitioner. With him on the briefs were Solicitor General Olson, Assistant Attorney General Keisler, Lisa S. Blatt, and Mark B. Stern.

Harold J. Krent argued the cause for respondents. With him on the brief were Angela Wah and George P. Eshoo.*

Justice Kennedy delivered the opinion of the Court.

This case requires us to consider whether the United States Postal Service is subject to liability under the federal antitrust laws.

Flamingo Industries (USA) Ltd., a private corporation, and its owner and principal officer are the respondents here. Flamingo had been making mail sacks for the Postal Service, but then its contract was terminated. The respondents sued in United States District Court alleging that the Postal Service had sought to suppress competition and create a monopoly in mail sack production. (They also brought claims against the Postal Service under federal procurement law and state law, but those claims are not before us.) The Dis-*Briefs of amici curiae urging affirmance were filed for the American Trucking Associations, Inc., by Drew S. Days III, Beth S. Brinkmann, Seth M. Galanter, Paul T. Friedman, and Robert Digges, Jr.; for Postal-Watch, Inc., by William S. Stancil; and for the Washington Legal Foundation et al. by Alan Charles Raul, Daniel J. Popeo, and Paul D. Kamenar.

Nicholas M. Fobe filed a brief for the Center for the Advancement of Capitalism as amicus curiae.

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