Three of the largest brokerages in a city meet privately and agree that none of them will cooperate with a new discount brokerage that charges a 1% commission. They will refuse to show that firm's listings and will discourage their seller clients from listing with it. Which type of antitrust violation does their conduct represent?
Correct Answer
C) Group boycott
Competitors who agree among themselves to refuse to deal with a particular firm have formed a group boycott, which courts treat as a per se violation of the Sherman Act: no proof of market effect or business justification saves it. The agreement here targets one identified rival and is aimed at removing it from the market rather than outcompeting it. A single firm deciding on its own not to cooperate would not be a boycott; the concerted agreement is what creates the violation.
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