The provision requires concerted action between separate economic actors and an unreasonable restraint of trade. Unilateral conduct falls outside it, and Copperweld holds that a parent and wholly owned subsidiary cannot conspire.
Analysis proceeds under per se or rule of reason.
Alternative Names:
Section 1|Sherman Section 1
Why it Matters?
The concerted action requirement is the threshold defense, since independent parallel conduct does not establish agreement and Twombly requires factual allegations plausibly suggesting agreement rather than merely conduct consistent with it. Intra-enterprise conspiracy is foreclosed under Copperweld, which reaches parent-subsidiary arrangements and in many applications commonly owned affiliates. Establishing unilateral decision-making defeats the claim entirely.
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Frequently asked questions
What is the threshold defense?
Can affiliated entities conspire?
