Federal Trade Commission v. University Health
United States Court of Appeals for the Eleventh Circuit
938 F.2d 1206 (1991)

- Written by Rich Walter, JD
Facts
The Federal Trade Commission (FTC) (plaintiff) petitioned a federal district court for a preliminary injunction blocking University Health, Inc. (defendant) from proceeding with a planned corporate acquisition. The FTC established a strong prima facie case that existing barriers to entry already restricted competition in the relevant market and that University Health’s acquisition would violate § 7 of the Clayton Act by further lessening competition in that market. University Health argued that the acquisition would generate significant market efficiencies that would offset any anticompetitive effects the acquisition might have. The district court accepted this argument, found that the FTC was unlikely to prevail on the merits of its case, and denied injunctive relief. The FTC appealed to the Eleventh Circuit.
Rule of Law
Issue
Holding and Reasoning (Tjoflat, C.J.)
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