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Texaco Inc. v. Dagher

Supreme Court of the United States (2006) | 164 L. Ed. 2d 1; 126 S. Ct. 1276; 547 U.S. 1; 2006 U.S. LEXIS 2023

4 min read

TL;DR: The Supreme Court held that a legitimate joint venture's decision to set a single price for products sold under its parent companies' separate brands is not per se illegal price-fixing, as the venture functions as a single economic entity whose internal pricing decisions are judged under the rule of reason.

Legal Significance: This case establishes that the internal pricing decisions of a legitimate, economically integrated joint venture are not subject to the per se rule against horizontal price-fixing. Such conduct must be challenged under the rule of reason, treating the venture as a single firm for antitrust analysis.