Exclusivity contracts

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Exclusivity contracts are subject to scrutiny under antitrust law.

In Potters Medical Center v. City Hospital Association, 800 F.2d 568 (6th Cir. 1986), the court allowed a plaintiff hospital to sue a rival hospital in order to compel it to end its anticompetitive practice of denying hospital privileges to physicians who simultaneously held hospital privileges with plaintiff.

When a plaintiff "seeks to forbid exclusivity - first on its own behalf and implicitly on behalf of others," the plaintiff does state an antitrust injury because it seeks "to destroy an anticompetitive arrangement." 2 Areeda, Hovenkamp & Blair, Antitrust Law P 348e, at 401.

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