FTAIA and Foreign Sales: Seventh Circuit Limits Extraterritorial Reach of U.S. Antitrust Law in Motorola Mobility v. AU Optronics

By on April 8, 2014

On March 27, 2014, in Motorola Mobility LLC v. AU Optronics Corp., the Seventh Circuit set precedent in the growing body of law interpreting the Foreign Trade Antitrust Improvements Act (FTAIA).  Judge Posner held that the FTAIA bars antitrust suits over restraints in foreign markets for parts (inputs) used abroad to manufacture products later imported into the United States.  The court held that such price fixing fails the FTAIA’s “direct effects” test, as well as the FTAIA requirement that the effect of the defendant’s conduct “gives rise to” an antitrust claim in the United States.

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Stefan M. MeisnerStefan M. Meisner
Stefan M. Meisner provides legal services to clients in connection with antitrust matters and electronic discovery issues. Stefan focuses his antitrust practice on complex, multidistrict class action litigation alleging Sherman Act violations, US Department of Justice (DOJ) investigations, merger investigations and intellectual property issues. He counsels clients on the antitrust implications of patent licensing and settlements of infringement litigation. In addition, he counsels clients on global strategies for addressing cartel prosecutions and defenses, from the inception of government investigations, to the initiation of civil class action litigation in a variety of jurisdictions. Read Stefan M. Meisner's full bio.

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