The Parker Doctrine: A Deep Dive into State Antitrust Immunity

Definition & Meaning

The Parker Doctrine, established in the case of Parker v. Brown, 317 U.S. 341 (1943), asserts that states are exempt from federal antitrust laws when acting in their capacity as sovereign entities. This principle emerged from a dispute involving a California regulation that controlled the pricing and supply of raisins. The Supreme Court ruled that the Sherman Act, which governs antitrust laws, does not intend to restrict actions taken by states. Therefore, state regulations in this context are not subject to federal antitrust scrutiny, although similar actions by private individuals would violate the law.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A state government enacts a law that limits the number of new grocery stores in a specific area to protect local businesses. Under the Parker Doctrine, this regulation may be immune from federal antitrust challenges.

Example 2: A state agency sets price controls on electricity to stabilize costs for consumers. This action, taken by the state, would not be subject to federal antitrust scrutiny, as it is a sovereign act. (hypothetical example)

Comparison with related terms

Term Definition Key Differences
Parker Doctrine Exemption of state actions from federal antitrust laws. Applies specifically to state actions as sovereigns.
State Action Immunity Legal doctrine providing immunity to states under certain conditions. Broader than the Parker Doctrine, may include other legal contexts.
Sherman Act Federal law prohibiting monopolistic practices. Applies to private entities, not state actions under the Parker Doctrine.

What to do if this term applies to you

If you are involved in a situation where state actions may conflict with federal antitrust laws, consider the following steps:

  • Review the specific state regulation or action in question.
  • Consult with a legal professional to understand how the Parker Doctrine may apply to your case.
  • Explore US Legal Forms for templates that may assist in addressing your legal needs.

Quick facts

Attribute Details
Jurisdiction United States federal and state courts
Key Case Parker v. Brown, 317 U.S. 341 (1943)
Legal Area Antitrust Law
Impact Protects state actions from federal antitrust challenges

Key takeaways

Frequently asked questions

The Parker Doctrine is a legal principle that exempts states from federal antitrust laws when they act as sovereign entities.