''United States v. Continental Can Co.'', 378 U.S. 441 (1964), was a
U.S. Supreme Court case which addressed
antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
issues. One issue it addressed was how should a
market segment be defined for purposes of reviewing a
merger
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
of companies which manufacture different but related products.
Facts
In 1956,
Continental Can Company
Continental Can Company (CCC) was an American producer of metal containers and packaging company, that was based in Stamford, Connecticut."CONTINENTAL GROUP COMPANY." ''International Directory of Company Histories''. Ed. Thomas Derdak. Vol. 1. Ch ...
, the second largest producer of metal containers in the U.S., acquired the
Hazel-Atlas Glass Company
The Hazel-Atlas Glass Company was a large producer of machine-molded glass containers headquartered in Wheeling, West Virginia. It was founded in 1902 in Washington, Pennsylvania, as the merger of four companies:
*Hazel Glass and Metals Company ...
, the third largest producer of glass containers.
The government sought Continental Can's
divestiture of the assets of Hazel-Atlas, arguing that the merger was a violation of Section 7 of the
Clayton Antitrust Act. The government claimed ten product markets existed, including the can industry, the glass container industry, and various lines of commerce defined by the end use of the containers.
Judgment
The
United States District Court for the Southern District of New York found three product markets: metal containers, glass containers, and beer containers. The district court dismissed the case, holding that the government had failed to prove reasonable probability of lessening competition in the markets it had identified.
Supreme Court
See also
*
US antitrust law
*
List of United States Supreme Court cases, volume 378
External links
*
*
1964 in United States case law
United States Supreme Court cases
United States Supreme Court cases of the Warren Court
United States antitrust case law
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