Hastings International and Comparative Law Review


Seung Wha Chang


The basic antitrust statutes of the United States, such as the Sherman Act, the Clayton Act, and the Federal Trade Commission Act, all possess some form of extraterritorial jurisdiction. Based upon the "effect doctrine," formulated by Judge Learned Hand in United States v. Aluminum Co. of America, the extraterritorial reach of U.S. courts under these statutes is broad. Applying the liberal standard of the "effects doctrine," federal courts more often than not have found jurisdiction over conduct occurring outside the United States by foreign corporations. This Article analyzes the international conflicts resulting from extraterritorial enforcement of the antitrust laws of the United States. This Article specifically examines the effect on selected countries of the Pacific Rim and their retaliatory responses. Next, an examination is undertaken of the issues involved with any potential solution seeking to resolve the conflict. In conclusion, the author proposes adopting bilateral treaties to resolve the international conflict over United States' application of its antitrust laws to foreign companies.