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ZF MERITOR, LLC v. EATON CORP.
United States Court of Appeals, Third Circuit (2012) | 696 F.3d 254
TL;DR: A dominant transmission manufacturer used long-term agreements with high market-share rebates to allegedly foreclose a competitor. The court held that above-cost pricing does not automatically immunize conduct that otherwise constitutes unlawful de facto exclusive dealing under a rule of reason analysis.
Legal Significance: This case clarifies that the *Brooke Group* price-cost test for predatory pricing does not create a safe harbor for all conduct involving above-cost prices. De facto exclusive dealing claims can proceed under the rule of reason even without proof of below-cost pricing.