Open Markets Files Amicus Brief Laying out Harms From Tying, Urges Court to Affirm Sherman Act’s Ban on Practice

WASHINGTON — The Open Markets Institute submitted an amicus brief on Nov. 3 in the Court of Appeals for the Third Circuit describing the harms of tying arrangements and the legal restrictions on the practice. Jason Rathod, at Miglaccio & Rathod LLP in Washington, generously served as the Open Markets Institute’s local counsel and filed the brief.

When a powerful firm or business engages in tying, it conditions the purchase of one product on the purchase of a separate product or service. Tying by dominant firms is a form of unfair competition that excludes rivals and coerces customers into paying for potentially unnecessary or unwanted purchases. The tying of two separate products or services by a dominant firm is prohibited categorically by the Sherman Act.

“Tying by monopolists and other dominant firms is a pernicious practice that forecloses rivals and robs consumers of the freedom to make informed judgments in the market,” said Sandeep Vaheesan, legal director of Open Markets Institute. “The government’s landmark monopolization suit against Google alleges the corporation used tying to maintain its dominance in search on mobile devices. Other Big Tech corporations have employed tying to cement and extend their market control, as well. We call on the Third Circuit to protect rivals, consumers, and the public by affirming the categorical rule against tying by firms with market power.”

Read the full brief bellow or download here.