In Gatt Communications Inc. v. PMC Associates LLC et al., the Second Circuit upheld the dismissal of a bid-rigging action against a radio dealer that sold to state and municipal entities. The court held that the plaintiff lacked antitrust standing under federal and state law.
The plaintiff alleged that the non-party radio manufacturer organized a bid rigging scheme in which it chose which of its dealers would submit the low big for each round of purchases. When Gatt attempted to buck the system by submitting an independent bid, its dealership was terminated.
For the scheme to have been unlawful, the court explained, it would have had to raise the prices paid by the purchasers. “Gatt has not been forced to pay higher prices for a product,” the court explained, “as customers who are victimized by price-fixing schemes might.”