As illustrated in State Oil Co. v. Khan, where a gasoline distributor controlled the maximum gas sales markup that its gas station dealers could charge (maximum price fixing), the Supreme Court has held that:

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The Supreme Court has held that vertical price fixing is acceptable under the rule of reason if it benefits consumers. In State Oil Co. v. Khan, the Court found that maximum price fixing by a gasoline distributor was anti-competitive and violated the Sherman Act. However, the Court also established that not all vertical price fixing is illegal and that some forms of vertical price fixing can benefit consumers and promote competition.

As Illustrated in State Oil Co