Grinnell Corporation manufactured plumbing supplies and fire sprinkler systems. It also owned 76 percent of the stock of ADT Co., 89 percent of the stock of AFA, Inc., and 100 percent of the stock of Holmes, Inc. ADT provided burglary-protection and fire- protection services. AFA provided only fire protection services. Holmes provided only burglary protection services. Each of the three firms offered a central station service under which hazard-detecting devices installed on the protected premises automatically transmitted an electronic signal to a central station. Other companies provided forms of protection service other than the central station variety. Subscribers to an accredited central station service (i.e., one approved by insurance underwriters) received substantially greater insurance premium reductions than the premium reductions received by users of other protection services. At the relevant time in question, ADT, AFA, and Holmes were the three largest central station service companies in terms of revenue. Together, they accounted for approximately 87 percent of the central station services provided. Contending that Grinnell, ADT, AFA, and Holmes had taken various anticompetitive actions that amounted to willful acquisition or maintenance of monopoly power, the U.S. government brought a monopolization action against Grinnell under § 2 of the Sherman Act. Concerning the first element of a monopolization claim (monopoly power in the relevant market), were fire-protection services and burglary-protection services too different to be part of the same market? What was the relevant market in this case? Were protection services other than those of the central station variety part of it?
Answer to relevant QuestionsMartindale Empowerment, a Virginia corporation, engaged in the business of providing commercial electronic-mail service to advertisers. Martindale regularly sent electronic advertising over the Internet in the form of e-mail ...In 1961, Ford Motor Company acquired Autolite, a manufacturer of spark plugs, in order to enter the profitable aftermarket for spark plugs sold as replacement parts. Ford and the other major automobile manufacturers had ...Professional Real Estate Investors, Inc. (PRE), operated a resort hotel in Palm Springs, California. Having installed videodisk players in the hotel's rooms and assembled a library of more than 200 motion picture titles, PRE ...Brian Petty was both a police officer in Nashville, Tennessee, and an officer in the Army Reserve. In October, he informed the department that he would be deployed to Iraq at the end of the year. While in Iraq, Petty was ...Karl Allen and Renee Galzo choose to be the sole owners and managers of a financial services business, Allen-Galzo & Associates LLP. Allen holds the copyright to investment analysis software that he developed three years ...
Post your question