United States v. E. I. Du Pont De Nemours & Co.

351 U.S. 377 (1956)

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Nature of the Case

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Facts

D produced almost 75% of the cellophane sold in the United States, and cellophane constituted less than 20% of all 'flexible packaging material' sales. P contends that, by so dominating cellophane production, D monopolized a 'part of the trade or commerce' in violation of §2. D contends that the prohibition of §2 against monopolization is not violated because it does not have the power to control the price of cellophane or to exclude competitors from the market in which cellophane is sold. The court below found that the 'relevant market for determining the extent of D's market control is the market for flexible packaging materials,' and that competition from those other materials prevented D from possessing monopoly powers in its sales of cellophane. P asserts that cellophane and other wrapping materials are neither substantially fungible nor like priced. The lower court ruled that the ultimate consideration in such a determination is whether D controls the price and competition in the market for such part of trade or commerce as they are charged with monopolizing. The court ruled for D and P appealed.