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Matsushita Electric Industrial Co. v. Zenith Radio Corp.

United States Supreme Court
475 U.S. 574 (1986)

Matsushita Electric Industrial Co. v. Zenith Radio Corp.


Zenith Radio Corp. (Zenith) (plaintiff) and National Union Electric Corporation (NUE) brought suit against Matsushita Electric Industrial Co. (Matsushita) (defendant) and 20 other Japanese-owned corporations which manufacture and sell consumer electronics products (CEPs). The complaint alleged that the defendants were involved in a predatory-pricing conspiracy in violation of the Sherman Antitrust Act and several other antitrust statutes. Zenith claimed that beginning in 1953, the defendants had conspired to sell their products at an artificially low price, resulting in a loss for the defendants, in order to put American manufacturers of CEPs out of business and gain a monopoly over the American market. The district court granted the defendants’ motion for summary judgment, and Zenith appealed. The court of appeals reversed, holding that a fact finder could have inferred, based on several conclusions, that the defendants were part of a conspiracy to deflate prices in the American market to drive out American manufacturers. The defendants appealed, and the United States Supreme Court granted certiorari.

Rule of Law


Holding and Reasoning (Powell, J.)

Dissent (White, J.)

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