Samuel Alito on Corporations

Supreme Court Justice (nominated by Pres. George W. Bush 2005)

Bundling goods to large purchasers is not monopolistic

SEN. DEWINE: Many hospitals buy their supplies through group purchasing organizations known as GPOs. Often GPOs reach deals with major suppliers to buy items in bundles; in other words buy a number of different products and those suppliers in order to get discounts on all of the products. In 3M v. LePage, 3M, which sells Scotch tape, was selling it as part of a bundle with other products. The result was that LePage's, which was offering a cheaper, competing tape, was having a hard time getting stores to sell its tape because if the stores did, they would have to give up the chance to save money on all the other 3M products that they carry. The majority ruled against 3M, but you dissented.

ALITO: This was a monopolization case. 3M was not selling the product below its cost. 3M, because of its scale or because it was more efficient, was able to produce its product more cheaply. That factor persuaded us that there wasn't sufficient evidence of monopolization here.

Source: Sam Alito Senate Confirmation Hearings Jan 11, 2006

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