Shearman & Sterling LLP multinational law firm headquartered in New York City, United States.

US Supreme Court building column -- United States Supreme Court Accepts the Importance of Two-Sided Markets Analysis

Aug 09, 2019

United States Supreme Court Accepts the Importance of Two-Sided Markets Analysis

Subscribe

Jump to...

 

On June 25, 2018, the U.S. Supreme Court, in a 5-4 decision by Justice Thomas, held that provisions in American Express Company’s contracts with merchants that restricted the ability of these merchants to steer customers to other credit or charge cards did not violate the Sherman Act. Ohio v. American Express Co., 138 S. Ct. 2274, 2280 (2018). In doing so, the Court recognized the importance of examining the effects on an alleged restraint on both sides of a two-sided platform market.

This ruling has important implications for antitrust analysis, not only for the credit card industry, but for other industries that operate in two-sided, or even multi-sided platform markets where firms must compete simultaneously for different groups of customers whose demands are distinct but interrelated.

Read this chapter in Shearman & Sterling’s 2019 Antitrust Annual Report, “United States Supreme Court Accepts the Importance of Two-Sided Markets Analysis.”

Authors and Contributors

John F. Cove, Jr.

Partner

Antitrust

+1 415 616 1139

+1 415 616 1139

San Francisco

Alexander Sanyshyn

Associate

Litigation

+1 415 616 1145

+1 415 616 1145

San Francisco