O Computers are sold by stores that have suggested retail price lists to follow. Store X always offers the computers for 20% less than list price. The other stores tell O they will quit carrying its computers if X keeps selling them so cheaply. O quits selling computers to X, so as to not lose the other stores. This is probably not an antitrust violation.

Question

Quizplus · Accepted Answer

This scenario does not involve antitrust violations as O is free to choose which stores it wants to supply its computers to. The other stores are not colluding to force X out of the market, but rather using their power as customers to negotiate prices with O. O's decision to stop selling to X is a business choice, not a violation of antitrust laws.

O Computers Are Sold by Stores That Have Suggested Retail