Grumman Systems accused Data General of violating the Sherman Act based on Data General’s tying the sale of its copyrighted software with a requirement that the buyer enter into an agreement to purchase Data General’s support services for the software. Data General defended on the basis that the support services were an integral part of its software and not a separate product.

CASE QUESTIONS

1. Is this tying arrangement a violation of antitrust laws? Explain you  answer.

2. Is this an example of a horizontal or vertical restraint?