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Antitrust Jurisdiction under Customary International Law
Published online by Cambridge University Press: 16 May 2017
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When, on October 24, 1983, the U.S. District Court for the Northern District of California handed down its decision in Timberlane Lumber Co. v. Bank of America and denied U.S. jurisdiction out of regard for the Honduran “system of justice,” there may have been some surprise that the case was still pending. The Timberlane decision of 1976 of the Court of Appeals for the Ninth Circuit, which remanded the matter to the district court, had already become a classic, even though it was preceded by the 1968 decision in United States v. First National City Bank on the production of documents located abroad. The Timberlane approach outlined by Judge Choy, under which the exercise of antitrust jurisdiction has to be restrained by a case-by-case analysis of various factors, was widely discussed (and usually praised) in legal writing, and was also followed by federal courts of the Second, Third, Fifth, Ninth and Tenth Circuits.
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References
1 Timberlane Lumber Co. v. Bank of America, 574 F. Supp. 1453 (N.D. Cal. 1983), appeal pending, No. 83-2008 (9th Cir. Oct. 26, 1983).
2 Timberlane Lumber Co. v. Bank of America, 549 F.2d 597 (9th Cir. 1976).
3 United States v. First Nat’l City Bank, 396 F.2d 897 (2d Cir. 1968).
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5 For references, see infra notes 73-75.
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8 Timberlane Lumber Co. v. Bank of America, 574 F. Supp. 1453, passim (N.D. Cal. 1983).
9 Timberlane Lumber Co. v. Bank of America, 549 F.2d 597, passim (9th Cir. 1976).
10 Id. at 611-12.
11 Id. at 613.
12 Timberlane Lumber Co. v. Bank of America, 574 F. Supp. at 1466 and passim.
13 Id. at 1472.
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23 731 F.2d 909 (D.C. Cir. 1984).
23a British Airways Bd. v. Laker Airways Ltd., [1984] 3 W.L.R. 413 (H.L.).
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25 731 F.2d at 950.
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27 U.S. Dep’t of State, Letter of the Legal Adviser to the U.S. Dep’t of Justice, Mar. 17, 1980, forwarded to the Clerk of the U.S. Court of Appeals by a letter of the U.S. Dep’t of Justice, Mar. 18, 1980.
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34 See note 19 supra.
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38 United States v. General Elec. Co., 82 F. Supp. 753 (D.N.J. 1949), 115 F. Supp. 835 (D.N J. 1953).
40 United States v. Imperial Chem. Indus. Ltd., 105 F. Supp. 215 (S.D.N.Y. 1952); British Nylon Spinners v. Imperial Chem. Indus. Ltd., [1953] 1 Ch. 19 (C.A.), [1955] 1 Ch. 37.
41 In re Investigation of World Arrangements with relation to the Production, Transportation, Refining & Distribution of Petroleum, 13 F.R.D. 280 (D.D.C. 1952); see also Subcomm. on Multinational Corporations of the Senate Comm. on Foreign Relations, Multinational Oil Corporations and U.S. Foreign Policy, 93D Cong., 2D Sess. (Comm. Print 1975).
42 See, e.g., In re Grand Jury Investigation in the Shipping Industry, 186 F. Supp. 298 (D.D.C. 1960); May, , The Status of Federal Maritime Commission Shipping Regulation under Principles of International Law, 54 Geo. L.J. 794 (1966)Google Scholar; Lowenfeld, , “To Have One’s Cake . . .”—The Federal Maritime Commission and the Conferences, 1 J. Mar. L. & Com. 21 (1969)Google Scholar.
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44 See, e.g., United States v. General Elec. Co., 1962 Trade Cas. (CCH) 1170,342 (S.D.N.Y. 1962); Henry, supra note 37, at 263 et seq.; Davidson, , The Canadian Response to the Overseas Reach of United States Antitrust Law, 2 Can.–U.S. L.J. 166, 167 et seq. (1979)Google Scholar.
45 See supra note 26 and: In re Westinghouse Elec. Corp. Uranium Contracts Litigation. In re Subpoenas Duces Tecum, 563 F.2d 992 (10th Cir. 1977); United States v. Gulf Oil Corp., No. 78–123 (W.D. Pa. filed May 9, 1978).
46 See, e.g.. In re Ocean Shipping Antitrust Litigation, 500 F. Supp. 1235 (S.D.N.Y. 1980); Sletmo, G. & Williams, E., Liner Conferences in the Container Age (1981)Google Scholar.
47 Laker, 731 F.2d 909 (D.C Cir. 1984).
48 ICI v. Commission, 1972 ECR 619.
49 For a survey of the facts, see IBM v. Commission, 1981 ECR 2639, dismissing IBM’s complaint against the formal initiation of administrative proceedings as inadmissible. On Aug. 2, 1984, those proceedings were suspended under a settlement whose terms, in the words of IBM’s Chairman, John R. Opel, do not require IBM “to make significant changes in how [it does] business.” Wall St. J. (Eur. ed.), Aug. 3, 1984, at 1.
50 Kammergericht [KG, Berlin Ct. App.], Decisions I and II, Nov. 26, 1980, Wirtschaft und Wettbewerb/Entscheidungssammlung [WUW/E] OLG 2411 (1980) (Bayer/Firestone v. Bundeskartellamt [Federal Cartel Office, FCO]); Gerber, , The Extraterritorial Application of German Antitrust Law, 77 AJIL 756 (1983)CrossRefGoogle Scholar.
51 KG, Decision of July 1, 1983 (Morris/Rothmans v. Bundeskartellamt), WuW/E OLG 3051, appeal pending; Gerber, supra note 50.
52 Dow Jones & Co. v. Attorney Gen. of Canada, No. T–l 167–80 (Can. Fed. Ct. June 10, 1980), aff’d by Federal Court of Appeal (Toronto) (Mar. 20, 1981, apparently not published); Rugman, Canada: FIRA Updated, 17 J. World Trade L. 352 (1983).
53 United States v. CIBA Corp., 1970 Trade Cas. (CCH) 1173,269 (S.D.N.Y. 1970); Erni, P., The Basel Marriage: History of The Ciba-Geigy Merger (1979)Google Scholar.
54 Bell, (then U.S. Attorney General), International Comity and the Extraterritorial Application of Antitrust Laws, 51 Austl. L.J. 801 (1977)Google Scholar; J. Davidow (then Director of Policy Planning in the Antitrust Division of the U.S. Dep’t of Justice), Address at the Federal Bar Association, at 6 (Aug. 28, 1980).
55 United States v. American Tobacco Co., 221 U.S. 106 (1911).
56 Alcoa, 148 F.2d 416 (2d Cir. 1945); United States v. Timken Roller Bearing Co., 341 U.S. 593 (1951); Industrial Inv. Dev. Corp. v. Mitsui & Co., 671 F.2d 876 (5th Cir. 1982); United States v. Swiss Bank Corp., 1942 Trade Cas. (CCH) ¶56,188 (D.NJ. 1941); Murata Mfg. Co., 96 F.T.C. 1116(1980).
57 United States v. Watchmakers of Switz. Information Center, 1963 Trade Cas. (CCH) 1170,600, at 77,455 (S.D.N.Y. 1962).
58 BOC Int’l Ltd. v. Federal Trade Comm’n, 557 F.2d 24 (2d Cir. 1977).
59 For a text of the instruments and a survey of practice, see Organisation for Economic Co-Operation and Development [OECD], Competition Law Enforcement (1984).
60 Id. at 69.
61 But see Rio Tinto Zinc Corp. v. Westinghouse Elec. Corp., [1978] 1 All E.R. 434 (H.L.); Gulf Oil Corp. v. Gulf Canada Ltd., 1980–1 Trade Cas. (CCH) 163,285 (Can. Sup. Ct. 1980).
62 Sinclair, Responses to Extraterritorial Exercises of Jurisdiction: The Diplomatic Response, in Extraterritorial Application, supra note
63 M U.S. Dep’t of State, Circular Note to Chiefs of Mission in Washington, D.C., Aug. 17, 1978, Contemporary Practice, 73 AJIL 124 (1979).
64 72 F. Supp. 1013 (S.D.N.Y. 1947).
65 Subcomm. on Multinational Corporations, supra note 41, at 74.
65a Notwithstanding independent grounds of substantive law, the settlement of the European IBM case (see supra note 49) might be seen in parallel to the outcome of the Petroleum case.
66 Conservation Council of W. Australia, Inc. v. Aluminum Co. of America, 518 F. Supp. 270 (W.D. Pa. 1981).
67 National Bank of Canada v. Interbank Card Ass’n, 666F.2d 6 (2d Cir. 1981); see also Crane Fruehauf Ltd. v. Fruehauf Corp., 1977–2 Trade Cas. (CCH) 1F61.708 (S.D.N.Y. 1977).
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69 Commission of The European Communities, Eleventh Report on Competition Policy, No. 37 (1982).
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71 Interamerican Ref. Corp. v. Texaco Maracaibo, Inc., 307 F. Supp. 1291, 1298 (D. Del. 1970); United States v. AMAX Inc., 1977–1 Trade Cas. (CCH) 1161,467, at 71,798 (N.D. 111. E.D. 1977).
72 Interamerican Ref. Corp. v. Texaco Maracaibo, Inc., 307 F. Supp. at 1298 etseq.; Occidental Petroleum Corp. v. Buttes Gas & Oil Co., 331 F. Supp. 92, 110 (CD. Cal. 1971); International Ass’n of Machinists & Aerospace Workers v. OPEC, 649 F.2d 1354 (9th Cir. 1981).
73 In re Uranium Antitrust Litigation. Westinghouse Elec. Corp. v. Rio Algom Ltd., 480 F. Supp. 1138 (N.D. III. E.D. 1979), 617 F.2d 1248 (7th Cir. 1980); United States v. First Nat’l City Bank, 396 F.2d 897 (2d Cir. 1968); Joseph Muller Corp. Zurich v. Société Anonyme de Gérance et d’Armement, 451 F.2d 727 (2d Cir. 1971); American Indus. Contracting Inc. v. Johns-Manville Corp., 326 F. Supp. 879 (W.D. Pa. 1971).
74 Timberlane Lumber Co. v. Bank of America, 574 F. Supp. 1453 (N.D. Cal. 1983); In re Westinghouse Elec. Corp. Uranium Contracts Litigation. In re Subpoenas Duces Tecum, 563 F.2d 992 (10th Cir. 1977); Montreal Trading Ltd. v. Amax Inc., 661 F.2d 864 (10th Cir. 1981).
75 Dominicus Americana Bohio v. Gulf & W. Indus., Inc., 473 F. Supp. 680 (S.D.N.Y. 1979); Zenith Radio Corp. v. Matsushita Elec. Indus. Ltd., 494 F. Supp. 1161 (E.D. Pa. 1980), 513 F. Supp. 1100 (E.D. Pa. 1981); Industrial Inv. Dev. Corp. v. Mitsui & Co., 671 F.2d 876 (5th Cir. 1982); Mannington Mills, Inc. v. Congoleum Corp., 595 F.2d 1287 (3d Cir. 1979) (developing a balancing test similar to that in Timberlane, settled on remand). For a short obiter dictum, see National Bank of Canada v. Interbank Card Ass’n, 666 F.2d 6 (2d Cir. 1981).
76 United States v. CIBA Corp., 1970 Trade Cas. (CCH) 1173,269 (S.D.N.Y. 1970); cf. §64 et seq. of the British Fair Trading Act 1973, ch. 41; for an interpretation of those provisions, see Korah, V., Competition Law of Britain and the Common Market 63 et seq. (1982)Google Scholar.
77 Nearly undisputed since the New York resolution of the International Law Association; see Report of the 55th Conference, at xix (1972). See also 57 Institut de Droit International, Annuaire 338 (1978). For a differing approach, see Mann, Staatliche Aufklärungsansprüche und Völkerrecht, in Festschrift für H. Mosler, supra note 36, at 529, 533 et seq.
78 For a detailed argument in favor of the effects principle leaving room, however, for future changes, see Meessen, K., Völkerrechtliche Grundsätze Des Internationalen Kartellrechts 108–72, especially at 155 (1975)Google Scholar.
79 GA Res. 35/63 (Dec. 5, 1980), adopting the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, UN Doc. TD/RBP/ CONF/10 (May 2, 1980), reprinted in 19 ILM 813 (1980); see especially sec. E(4). Cf. also UNCTAD, Report of the Inter-governmental Group on Restrictive Business Practices on its Second Session, Held at Geneva from 21 to 30 November 1983, UN Doc. TD/B/RBP/16.
80 American Banana Co. v. United Fruit Co., 213 U.S. 347 (1909).
81 K. Meessen, supra note 78, at 171–72 (“wohlverstandenes (Eigen-) Interesse”).
82 KG, Decision of July 1, 1983, supra note 51.
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85 Laker, 731 F.2d at 950.
86 Case Concerning the Continental Shelf (Tunisia/Libyan Arab Jamahiriya), 1982 ICJ Rep. 18, 77 (Judgment of Feb. 24).
87 United States v. First Nat’l City Bank, 396 F.2d 897, 902 (2d Cir. 1968).
88 In re Westinghouse Elec. Corp. Uranium Contracts Litigation. In re Subpoenas Duces Tecum, 563 F.2d 992, 998 (10th Cir. 1977).
89 KG, Decision II of Nov. 26, 1980, WuW/E OLG 2419, 2420 (Bayer/Firestone).
90 FCO, Decision of Feb. 24, 1982, WuW/E BKartA 1943, 1953 (Morris/Rothmans); KG, Decision of July 1, 1983, WuW/E OLG 3051, 3057 (Morris/Rothmans).
91 See cases cited in notes 71 and 72 supra.
92 Memorandum of Understanding between the Government of the United States of America and the Government of Canada as to Notification, Consultation and Cooperation with respect to the Application of National Antitrust Laws, Mar. 9, 1984, reprinted in 23 ILM 275 (1984).
93 See notes 28–32 supra and accompanying text.
94 For a similar formulation and extensive reasoning, see K. Meessen, supra note 78, at 198– 232.
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99 See notes 89 and 90 supra.
100 To compare approaches, see Gerber, supra note 50. For a similar international law approach, cf. Bowett, , Jurisdiction: Changing Patterns of Authority over Activities and Resources, 53 Brit. Y.B. Int’l L. 1 (1982)Google Scholar.
101 Fisheries Jurisdiction (FRG v. Ice.), 1974 ICJ Rep. 175, 200 (Judgment of July 25).
102 For a more extensive discussion, cf. K. Meessen, supra note 78, at 219 et seq.
103 Cf. note 92 supra.
104 For an interesting conflict-of-laws parallel, see Juenger, , A Critique of Interest Analysis, 32 Am. J. Comp. L. 1, 35–36 (1984)Google Scholar.
105 Cf. K. Meessen, supra note 78, at 229, 264.
106 For a recent account of the history of such instruments and for a reproduction of the text of those currently in force, see OECD, supra note 59.
107 Cf. note 92 supra.
108 Resolution, International Law Association, Report of the 54th Conference, at xiii (1970); Zwarensteyn, H., Some Aspects of the Extraterritorial Reach of the American Antitrust Laws 89 (1970)CrossRefGoogle Scholar; Cutler, Extraterritorial Application of Competition Laws, in Extraterritorial Application, supra note 33.
109 Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 17 UST 1270, TIAS No. 6090, 575 UNTS 159.
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