Pool Corporation, as the largest wholesale distributor of swimming pool supplies in the United States and the only distributor with a nationwide distribution system, was accused in 2011 by the Federal Trade Commission of abusing its market power by pressuring its product manufacturers to refrain from selling to those seeking to enter the market as pool supply distributors (and thus competitors of Pool Corporation). The FTC found that manufacturers representing about 70 percent of all pool product sales declined to sell to new entrants. The FTC calculated that Pool Corporation accounted for 30 to 50 percent of most pool supply manufacturers’ sales, making it by a wide margin the largest customer of those manufacturers.
a. What antitrust violation(s) were alleged by the FTC?
b. How would you rule on those alleged violations? Explain.