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Antitrust Keyed to Gavil, 5th Ed.
JTC Petroleum Co. v. Piasa Motor Fuels, Inc.
Citation:
190 F.3d 775 (1999)Facts
JTC Petroleum Company operated as an applicator in the road-repair business in southern Illinois, competing with the defendant applicators for local government contracts. The market for road-repair services was conducive to collusion due to its local nature, limited number of competitors, standardized service, and government bidding requirements that made it easy to detect cheating. The emulsified asphalt used by applicators was produced by only three manufacturers in the region due to transportation limitations (practical radius of about 70 miles) and the product’s tendency to deteriorate when transported long distances. JTC presented evidence that the applicator defendants had agreed not to compete with one another in bidding on government contracts and that the producers had agreed to refuse to sell to JTC when it attempted to bid for jobs the cartel had assigned to other applicators. JTC offered evidence that the producers’ stated reasons for refusing to sell to it were pretextual, including refusing to sell even when JTC offered to pay cash despite claims about credit risk. Additionally, evidence showed that producers charged 4-18% higher prices to applicators in the cartel area compared to adjacent regions, suggesting possible compensation for enforcing the applicators’ cartel.
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