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Rule of reason

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Definition Edit

The rule of reason is a legal approach by competition authorities or the courts where an attempt is made to evaluate the pro-competitive features of a restrictive business practice against its anticompetitive effects in order to decide whether or not the practice should be prohibited.

The rule of reason analysis imposes an initial burden on the plaintiff to show that the "restraint produces 'significant anticompetitive effects' within a 'relevant market.'"[1]

References Edit

  1. Tanaka v. Univ. of S. Cal., 252 F.3d 1059, 1063 (9th Cir. 2001).

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