Brown Shoe Co. v. United States
Citation
370 U.S. 294 (U.S. Supreme Court, 1962)
Facts
The DOJ challenged the merger of Brown Shoe Co. and Kinney Shoe Co. under Clayton Act § 7. The Court analyzed both the horizontal aspects (competition between retail outlets) and the vertical aspects (manufacturer-retailer integration) of the merger. The merger combined two of the largest shoe manufacturers and retailers in the United States.
Issue
Whether the merger of Brown Shoe and Kinney Shoe violated Clayton Act § 7 by substantially lessening competition in either the product or geographic markets for shoes.
Holding
The Court held that both the horizontal and vertical aspects of the merger violated Clayton Act § 7 and ordered divestiture.
Rule
Market definition for merger analysis must consider both product and geographic markets; “submarkets” within broader markets may be relevant; congressional intent to prevent economic concentration supports strict merger enforcement.