55% Market Share in Market with Three Competitors Supports Monopoly Power Allegation

The court denied defendant’s motion to dismiss plaintiff’s monopolization claim because plaintiff sufficiently alleged monopoly power. “⁠[Plaintiff] alleges [defendant] holds a market share ‘in excess of 55%.’ Although an allegation of 55% alone may not be sufficient to allege monopoly power, [plaintiff] alleges a high barrier of entry into the market and [defendant’s] history of controlling prices despite an overall decrease in sales volume in the market. Only three companies compete against [defendant] in the ceiling tile market. [Defendant] has raised its prices since 2011, despite an overall decrease in sales volume in the ceiling tile market. [Defendant] now charges 5% over competitive market prices. [Plaintiff] alleges only a few distributors are capable of servicing companies the size of [plaintiff]. Regional and local distributors have consolidated with national distributors expanding the reach of the [defendant’s] exclusivity agreements. [Plaintiff] alleges [defendant’s] exclusivity agreements with key distributors prevented new competitors from entering the market and remaining competitive. Viewing these facts favorably to [plaintiff] as we must do at this stage, [plaintiff] sufficiently alleges monopoly power.”

Roxul USA, Inc. v. Armstrong World Industries Inc., 1-17-cv-01258 (DED 2018-02-09, Order) (Mark A. Kearney)

2018-02-13T15:44:03+00:00 February 13th, 2018|Antitrust, Docket Report|