Effects doctrine
Effects doctrine: the principle that a state may have antitrust laws covering conduct outside of its territory if such conduct has an actual or potential effect on commerce within its territory. For example, the 1986 Third Restatement of the Foreign Relations Law of the United States says that “any agreement in restraint of United States trade that is made outside of the United States, and any conduct or agreement in restraint of such trade that is carried out predominantly outside of the United States, are subject to the jurisdiction to prescribe of the United States, if a principal purpose of the conduct is to interfere with the commerce of the United States, and the agreement or conduct has some effect on that commerce”. The effects doctrine is subject to a test of reasonableness. Other jurisdictions, including the European Community, apply a version of the effects doctrine. See also competition policy, extraterritoriality and implementation doctrine.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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