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Antitrust Keyed to Areeda, 8th Ed.
United States v. Topco Associates
Citation:
405 U.S. 596 (1972)Facts
Topco Associates was a cooperative purchasing association owned and controlled by approximately 25 small and medium-sized regional supermarket chains. The association procured and distributed more than 1,000 different food and related items to its members, most under Topco’s private-label brands. Topco’s members had a combined retail sales volume that made them collectively competitive with the largest national chains. Topco’s bylaws established three categories of territorial licenses for members: exclusive, non-exclusive, and coextensive. Most licenses were exclusive, and even those labeled non-exclusive or coextensive functioned as de facto exclusive territories. Members could not sell Topco-brand products outside their designated territories. Additionally, Topco restricted members from selling Topco products at wholesale without special permission. Topco argued these restrictions were necessary to enable its members to compete effectively with larger national chains.
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