FTAIA May Bar US Cos. From Relief Under US Antitrust Laws

Congress enacted the Foreign Trade Antitrust Improvements Act due to concerns by foreign sovereigns over the application of U.S. antitrust law to foreign conduct. To address such concerns, the act placed all nonimport foreign commerce outside the Sherman Act (15 U.S.C § 1 et seq.) unless (1) such conduct has a “direct, substantial and reasonably foreseeable effect” on American domestic or import commerce, and (2) such effect gives rise to the plaintiff’s Sherman Act claim. 15 U.S.C. § 6a. But application of the FTAIA has been a source of controversy.