The Antitrust Effect Of Joint Ventures

A joint venture is a business arrangement in which two or more parties undertake a specific economic activity together. Joint ventures are subject the same analysis as other conventional mergers, because they seek to eliminate competition. Joint ventures are treated under Section 1 of the Sherman Act and Section 7 of the Clayton Act. Joint ventures therefore have been analyzed under both sections. However, joint ventures are considered to have ambiguous effects on the marketplace so therefore they are judged under the totality of circumstances or the “rule of reason” analysis.

The following questions have been addressed in this article:

What is the analysis under Section 7 of the Clayton Act?
What is the analysis under the rule of reason for the Sherman Act?
What are the strategies for co-branding?

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