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Official Airline Guides, Inc. v. FTC

630 F.2d 920 (1980)

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Official Airline Guides, Inc. v. FTC

United States Court of Appeals for the Second Circuit

630 F.2d 920 (1980)

Facts

Reuben H. Donnelly Corp. (Donnelly) (defendant) was the publisher of the Official Airline Guide (the Guide). The Guide provided flight schedules and was used by airline ticket offices, travel agents, and business travelers. Donnelly listed the flight information for commuter airlines in the back of the Guide, separate from the information for major carriers, and without including information about their connecting flights. Donnelly explained this decision by arguing that commuter airlines were less reliable than major carriers and publishing the flight information together would harm consumers. The Federal Trade Commission (FTC) (plaintiff) alleged that Donnelly had violated § 5 of the Federal Trade Commission Act (the FTC Act) through its actions by harming competition among airline carriers. In its decision, the FTC noted that previous cases allowed limits to be placed on a monopolist’s ability to affect competition, both in its own market and in adjacent markets where the monopolist has extended its operations. The FTC also pointed to a line of cases that place a duty on owners of scarce resources to make the resources available without discrimination. The FTC found Donnelly in violation of § 5. Donnelly appealed.

Rule of Law

Issue

Holding and Reasoning (Oakes, J.)

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