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Geography

The Extraterritorial Application of National Antitrust Laws

Quick fact

In the 1945 Alcoa case, the U.S. asserted jurisdiction over aluminum cartel conduct abroad because it had a 'substantial effect' on U.S. commerce—but the U.S. later passed the Foreign Trade Antitrust Improvements Act to limit that reach, requiring effects to be 'direct, substantial, and reasonably foreseeable.'

Why this is interesting

You'd think a country's laws stop at its borders—but for antitrust, the U.S. and EU can punish a cartel that operates entirely overseas, as long as it affects their markets. How far can a state's legal reach actually go?