COMPETITION LAW

UNI TED STATES

V.S
E.I. DU PONT DE
NEMOURS &CO.
ADAN/ CARC E L L AR/ E VANGELI S TA
FACTS
The Government charged that Du Pont had monopolized
interstate commerce in cellophane in violation of § 2 of
the Sherman Act.

Du Pont was an American leader in the field of synthetics

and learned of cellophane' s successes through an
associate, Comptoir des Textiles Artificial. In 1923, du
Pont organized with La Cellophane an American company
for the manufacture of plain cellophane.

During the relevant period, appellee produced almost 75%

of the cellophane sold in the United States; but cellophane
constituted less than 20% of all flexible packaging
materials sold in the United States.
 ISSUE
Whether the Appellee violates Section of the Sherman Act. (NO)
 RULING: NO!
PR I CES AND CO MPET I TIO N
The ultimate consideration in determining
1
whether an alleged monopolist violates § 2 of
the Sherman Act is whether the defendant
controls prices and competition in the market
for such part of trade or commerce as he is
charged with monopolizing.

A party has monopoly power contrary to § 2 of

the Sherman Act if it has, over "any part of the
2
trade or commerce among the several States," a
power of controlling prices or unreasonably
restricting competition.
 RULING (NO)
ON THE RECORD IN THIS CASE,
IT CANNOT BE SAID THAT THE
CELLOPHANE' S
VARIATIONS IN PRICE BETWEEN IT CANNOT BE SAID THAT
INTERCHANGEABILITY WITH
CELLOPHANE AND OTHER APPELLEE HAS EXCLUDED
NUMEROUS OTHER MATERIALS
FLEXIBLE PACKAGING COMPETITORS FROM THE
SUFFICES TO MAKE IT A PART
MATERIALS PREVENT THEM FLEXIBLE PACKAGING
OF THE MARKET FOR FLEXIBLE
FROM BEING COMPETITIVE OR MATERIAL MARKET.
PACKAGING MATERIALS.
GAVE APPELLEE MONOPOLY
POWER OVER PRICES