Topco Associates, Inc., is a cooperative association of small and medium-sized regional supermarket chains. Each of its member chains operates independently.

All members are required to operate under exclusive territorial licenses issued by Topco . These licenses provide that members will sell Topco -controlled brands only within the marketing territory given them. The government filed suit in federal district court. It argued that this scheme of dividing markets among competing chains violated the Sherman Antitrust Act because it prohibited competition in Topco -brand products among grocery chains engaged in retail operations. Topco d e fended by arguing that the association actually increased competition between the smaller and the larger chains. Was Topco correct? Defend your answer. United States v. Topco Associates, Inc., 92 S.Ct . 1126 (U.S. Sup. Ct.).