Topco Associates, Inc., is a cooperative association of small and medium-sized regional su permarket chains. Each of its member chains operates independently. All members are required to operate under exclusive territorial licenses issued by Topco . These licenses provide that members will sell Topco -controlled brands only within the marketing territory given them.
The government filed suit in federal district court. It argued that this scheme of dividing markets among competing chains violated the Sherman Antitrust Act because it prohibited compe tition in Topco -brand pro d ucts among grocery chains engaged in retail operations.
Topco defended by arguing that the ass o ciation actually increased competition between the smaller and the larger chains. Was Topco co r rect? Defend your answer.
United States v. Topco Associates, Inc., 92 S.Ct . 1126 (U.S. Sup. Ct.).