Company Cannot Treat Minority-Owned Foreign Subsidiary as Extension of Itself to Satisfy the FTAIA

Abstract

In In re Refrigerant Compressors Antitrust Litigation, the Eastern District of Michigan dismissed plaintiff General Electric Corp.’s antitrust claims against defendants Danfoss A/S, Danfoss Flensburg GmbH, and Danfoss, LLC on the grounds that the claims were barred under the Foreign Trade Antitrust Improvements Act of 1982 and the Illinois Brick indirect purchaser rule. The court reasoned that GE cannot treat its minority-owned foreign manufacturing subsidiary as an extension of itself for the purposes of satisfying the FTAIA or avoiding the indirect purchaser standing rule.