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Also known as:direct evidence · direct proof of anticompetitive effects
Written by attorneys · grounded in primary & secondary sources — see below
Evidence that demonstrates actual adverse effects on competition such as reduced output or increased prices. Such evidence establishes market power directly without the need to define a relevant market or calculate shares.
Sources & Authorities· 1 primary source
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Cases
Restatements
How it applies
Common Examples
2
Warehouse Club Restrictions
Delta Dynamics limited toy makers' sales to warehouse clubs. Evidence showed higher prices and fewer options for consumers at those clubs. This direct evidence of anticompetitive effects allowed the court to find market power without defining a precise market.
Rebuilding Trades Impact
Dawson Steel's general manager made trades that cut payroll and caused a sharp drop in franchise value. Internal records showed the goal was to depress the books ahead of a buyout. The resulting harm to competition supplied direct evidence of anticompetitive effects.
Common questions
Put it into practice
Test Yourself
10
Practice Questions5
Hornbooks
Frequently Asked
1
How does direct evidence of anticompetitive effects differ from indirect proof of market power?+
Direct evidence shows actual harm such as higher prices or reduced output. Indirect proof requires defining a market and showing high shares or barriers. The hornbook notes that either method can establish market power under Sherman Act analysis.
Supporting sources
EvidencePrivileges and other policy exclusions · Other privilegesUBEIntermediate