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How operations management can strengthen a well-intended but controversial anti-collusion regulation from the 1970s
27 September 2019
Public policy often has to balance specific objectives, but few decisions can be said to be as contentious and a focus for debate as Illinois Brick Co. v. Illinois (1977). It is a US Supreme Court ruling that has had an impact well beyond construction.
The decision has proved contentious not only because of ambiguity around its interpretation but also because of concerns regarding its effectiveness in curtailing collusion.
Even this year lawyers for Apple’s App Store cited the precedent of Illinois Brick in an attempt to have an anti-trust case against them dismissed. In May, the US Supreme Court split 5-4 over the interpretation of Illinois Brick in Apple Inc. v. Robert Pepper et al.
The justices agreed by the narrowest margin that the plaintiff did have a case against Apple’s App Store because they had a direct relationship with the tech giant. Apple unsuccessfully argued the consumer relationship was with the App makers.
