Gasoline Price Changes - Federal Trade Commission

THE DYNAMIC OF SUPPLY, DEMAND, AND COMPETITION
to higher wholesale prices, are offset by reduced earnings in the isolated markets. Id. at 23.
90. In re Exxon Corp., No. C-3907, Analysis of Proposed Consent Order to Aid Public Comment 7 (Jan. 26, 2001),
at http://www.ftc.gov/os/1999/11/exxonmobilana.pdf. In considering the price zones as part of its merger analysis,
the Commission expressly stated that it had not “concluded that these practices of themselves violate the antitrust
laws or constitute unfair methods of competition within the meaning of Section 5 of the FTC Act.” Id. at 7 n.8. The
Commission also noted that the merger might limit arbitrage opportunities because it reduced “interbrand
competition through the elimination of one independent supplier.” Id. An arbitrage opportunity refers to an
opportunity to buy a product in one market and almost immediately sell it in another market at a higher price,
including any transportation or transaction costs.
91. PETROLEUM MERGER REPORT, supra note 14, at 227 n.17.
92. MEYER & FISCHER, supra note 83, at 28 (quoting Petroleum Marketers Ass’n of America, PMAA White Paper
on Refiner Redlining in Historic Independent Marketer Territories (2003)).
93. See Statement of Commissioners Anthony et al., supra note 86.
94. See id.
95. Continental T.V., Inc. v. GTE Sylvania, Inc., 433 U.S. 36 (1977). See also Business Electronics Corp. v. Sharp
Electronics Co., 485 U.S. 717 (1988).
96. MEYER & FISCHER, supra note 83, at 32 (internal citation omitted).
97. Continental T.V., 433 U.S. 36.
CHAPTER 5: STATE & LOCAL POLICIES, & VERTICAL INTEGRATION 135