Associated Press v. United States

Background

A cooperative made up of more than 1,200 newspaper publishers collected, edited, and distributed news to its members. The Government sued the cooperative, saying its bylaws stopped member papers from selling news to non-members and gave members power to block rival newspapers from joining. A three-judge District Court found those membership rules unlawful under the Sherman Antitrust law and entered an injunction; the issue went straight to this Court on appeal.

Reasoning

The core question was whether the cooperative’s membership rules and related agreements unlawfully restrained interstate trade in news. The Court held that the bylaws, by denying non-members access to AP news and by letting members impose conditions that kept rivals out, were contracts in restraint of trade under the Sherman Act. The Court rejected the idea that press freedom gives private groups a right to combine to prevent others from publishing. Because the essential facts about the restrictive rules were admitted, the Court found summary judgment appropriate and affirmed the District Court’s injunction stopping those practices. The Court approved a decree that would allow the cooperative to adopt new rules so long as they do not discriminate against competitors.

Real world impact

Competing newspapers can no longer be shut out by the cooperative’s membership rules that prevented them from buying news. The decision affirms that the Government can use antitrust law to challenge private limits on news distribution. One part of the relief (the contract with a Canadian agency) was enjoined temporarily pending compliance with the order, and the District Court kept the case for any further needed enforcement.

Dissents or concurrances

Some Justices concurred but stressed limits on remedies. A dissent argued the record lacked clear proof and warned against using antitrust law to invite government interference with the press without a full trial.