Recent Price-fixing Cases

An interesting academic case involved an investigation by the justice Department of the way that colleges and universities set tuition and scholarship aid. The government claimed that a small group of educational institutions conspired to reduce scholarship competition for top students by agreeing to award scholarships only on the basis of financial need and by comparing prospective aid awards to commonly admitted applicants. One of the defendants, the Massachusetts Institute of Technology (MIT), fought the government in the courts, arguing that nonprofit institutions should meet a different standard than profit-maximizing businesses. MIT prevailed on appeal in court. but this case raised novel issues about the manner in which antitrust law and regulations will be applied to activities of educational and other nonprofit institutions