The FTC further alleged that the exchange of information among NAMM members (which include Guitar Center and the manufacturer defendants) “served no legitimate business purpose” and “had the purpose, tendency, and capacity to facilitate collusion and to restrain competition unreasonably.” Id. at ¶¶ 6–7.
Proceedings Below After the FTC issued its consent decree, numerous plaintiffs filed complaints alleging that defendants agreed to fix the retail prices of musical instruments in violation of § 1 of the Sherman Act and state antitrust laws.
Any firm that believes that it could 7 In In re Citric Acid Litigation, we recognized that circumstantial evidence in the form of plus factors could support the reasonable inference of an agreement and thus raise a genuine issue of material fact to defeat a defendant’s motion for summary judgment.
The FTC complaint stated that “[t]he exchange of information between 1 While plaintiffs were allowed limited discovery on the “closed door” meetings at NAMM-sponsored events, they were explicitly barred from inquiring about specific terms of the MAP policies.
NAMM members [including the manufacturer defendants], as alleged herein, had the purpose, tendency, and capacity to facilitate collusion and to restrain competition unreasonably.” In the Matter of National Association of Music Merchants, Inc., No. C-4255, at ¶ 7.