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Antitrust Keyed to Areeda, 8th Ed.
Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co., Inc.
Citation:
549 U.S. 312 (2007)Facts
Ross-Simmons began operating a hardwood-lumber sawmill in Longview, Washington in 1962, while Weyerhaeuser entered the Northwestern hardwood-lumber market in 1980 by acquiring an existing lumber company. By 2001, Weyerhaeuser owned six hardwood sawmills in the region and was purchasing approximately 65% of the alder logs available for sale. From 1990 to 2000, Weyerhaeuser invested more than $75 million in capital improvements to its hardwood mills and implemented state-of-the-art technology to increase efficiency. During 1998-2001, the price of alder sawlogs increased while prices for finished hardwood lumber fell. These divergent trends in input and output prices reduced profit margins, and Ross-Simmons suffered heavy losses during this period. In May 2001, Ross-Simmons shut down its mill completely. Ross-Simmons sued Weyerhaeuser, alleging that Weyerhaeuser had used its dominant position in the alder sawlog market to drive up prices to levels that eliminated the profit margins of competitors.
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