The past several decades have seen a surge in trade deals, technology advancements and logistical developments that have culminated in the most liberalized markets in history. Today’s economies are inextricably interdependent. Businesses reach across hemispheres. Raw materials and component products cross numerous boundaries before making their way into the hands of end consumers. This puts arbitrators of antitrust laws in a quandary: how deep into foreign territory can their laws reach in order to protect fair competition at home?

This article discusses efforts to settle the boundaries of American and European antitrust regimes, and the unresolved matters that linger. It first explores the way American courts identify ‘import commerce’ subject to the Sherman Act when defendants are foreign participants in globalized supply chains. It then turns to the European Union’s (EU) expanding approach to enforcement of foreign conduct, and its increasingly aggressive participation in international efforts to prosecute cartel members.

Read this chapter in Shearman & Sterling’s 2019 Antitrust Annual Report, “Extraterritorial Application of Major Antitrust Regimes.”

The authors and contributors below were supported by associate Olivia Merrett.