Full opinion text
Opinion for the Court filed by Circuit Judge D.H. GINSBURG. Concurring opinion filed by Circuit Judge SILBERMAN. D.H. GINSBURG, Circuit Judge: We are called upon to review a determination by the Federal Trade Commission that petitioners, the Superior Court Trial Lawyers Association and four individual member attorneys, Ralph J. Perrotta, Karen E. Koskoff, Reginald G. Addison and Joanne D. Slaight, (hereinafter collectively SCTLA) violated Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45 (1982), by organizing and participating in a concerted refusal to deal or “boycott” aimed at forcing the District of Columbia government to increase the hourly compensation paid to attorneys who represent indigent defendants in criminal cases before the District of Columbia Superior Court. The Commission concluded that the boycott constituted an “unfair method of competition” and entered an order requiring the petitioners to cease and desist from similar conduct in the future. For the reasons stated below, we grant the petition for review, in part, and remand to the Commission to determine whether SCTLA had the market power necessary for the boycott to violate Section 5. I. The District of Columbia Criminal Justice Act, D.C. Code Ann. §§ 11-2601 — 11-2609 (1981 and 1987 Supp.) (CJA or Act) provides for the reimbursement of private lawyers who are appointed to represent indigent criminal defendants. Of all defendants who are unable to pay for counsel, 85% are represented by attorneys appointed under the CJA; another eight to ten percent are represented by the Public Defender Service (PDS), generally in more serious cases, and the rest are represented by third year law students (3-5%) and by pro bono private attorneys (under .5%). 1.D.F. 19, 20. Any member in good standing of the D.C. Bar, who has a local address and telephone number, may register with the CJA office of the PDS to receive appointments under the Act. Appointments are made by a Commissioner (or, on weekends, by a Superior Court judge) who compares a list of eligible defendants with a list of lawyers who have indicated their availability by telephoning the CJA office of the PDS between 7:45 a.m. and 8:15 a.m. that day. For the most part, names on the two lists are simply matched up in the order in which they appear until all the defendants have been provided counsel. The appointing official exercises some discretion, however, to assign a lawyer out of turn on the basis of the complexity of the case, the lawyer’s known preferences, or the official’s assessment of the lawyer’s ability. More than 1200 lawyers have registered for CJA appointments. In practice, however, most appointments go to a much smaller group of approximately 100 “CJA regulars,” I.D.F. 18, who earn most or all of their income by representing indigent defendants. At least before the recent rate increase, the origins of which are at issue in this case, any lawyer who was interested in making a full time practice of CJA work could obtain a substantial caseload in a matter of weeks. The CJA regulars accept CJA cases for a variety of reasons. Some of them have previous experience in public interest work and “consider representation of the poor [to be] the highest calling of the legal profession.” I.D.F. 25. Some are motivated by an interest in criminal litigation. And some accept appointments under the CJA because there are no other legal jobs available to them. Id. From 1970 until the boycott in 1983, fees for CJA cases were set at $30 per hour for time in court, and $20 per hour for other time, subject to a maximum of $1000 per case for felonies, $400 per case for misdemeanors, and $1000 per case for appeals. The maximum compensation available to any individual for services provided under the Act was $42,000 per annum. In order to get paid for CJA services, the attorney submits a voucher to the presiding judge showing the amount and nature of the time he or she spent on the case. The presiding judge has the authority to reduce the amount sought or, in particularly difficult or complex cases, to recommend to the Chief Judge compensation over the maximum per case limits. I.D.F. 27. Very few CJA regulars actually attained the annual maximum salary; one SCTLA member estimated that the average CJA lawyer made approximately $20,000 a year before the boycott. I.D.F. 29 & n. 102. In 1982, the District paid CJA lawyers a total of $4,579,572. As early as 1975, the level of CJA fees became an issue of concern among some members of the bar. In that year, the Report on the Criminal Defense Services in the District of Columbia by the Joint Committee of the Judicial Conference of the D.C. Circuit and the D.C. Bar (Unified) at 77 (Austern-Rezneck Report), concluded that CJA attorneys were inadequately compensated. The Austern-Rezneck Report found that the prevailing rates drove talented lawyers out of CJA practice, and encouraged those who remained to do a less than adequate job on their cases. Id. at 78-79. The report therefore recommended that the CJA rates be increased to $40 an hour for time in or out of court, subject to a maximum $800 for a misdemeanor ease and $1000 for a felony case. The report further expressed the belief that these rates “represented] the absolute minimum necessary to attract and hold good criminal lawyers and assure their ability to render effective representation to their clients.” Id. at 84. Nonetheless, in 1982 the CJA rates remained unchanged from the level that had prevailed when the Austern-Rezneck report was released in 1975. In March 1982, the Report of the D.C. Court System Study Committee of the D.C. Bar, reprinted as Senate Print 98-34, 98th Cong., 1st Sess., Comm, on Govt’l Affairs (Horsky Report), recommended that all necessary steps be “taken by the Superior Court, the Mayor, and the D.C. Council to raise promptly the levels of compensation for attorneys appointed under the Criminal Justice Act to at least the levels proposed by the Aust-ern-Rezneck Committee.” Id. at 213. A bill increasing the hourly rate to $50 was then introduced in the D.C. Council, but it died in committee at the end of 1982 without a hearing. I.D.F. 36. Meanwhile, in September 1982, petitioners Perrotta and Koskoff began a lobbying effort to increase the CJA compensation levels. Both petitioners, who were elected respectively President and Vice President of SCTLA in the fall of 1982, spent at least 90% of their time on CJA cases. I.D.F. 5-6. When they began their campaign, SCTLA was an informal association of CJA lawyers with no reliable membership list and no written by-laws. While the association kept a bank account, it did not enforce the rule that members pay $30 in annual dues. All CJA lawyers were allowed to participate in SCTLA meetings and to vote in SCTLA elections. I.D.F. 2-4. Perrotta and Koskoff s early efforts included several conversations with Chief Judge Moultrie of the D.C. Superior Court, a meeting with Herbert Reid, Counsel to D.C. Mayor Marion Barry, and a strategy session with Wiley Branton, then Dean of Howard University Law School. Chief Judge Moultrie told Perrotta and Koskoff that he thought an increase in CJA compensation levels was deserved, but he declined to give any public support to pending legislation on the ground that, if such legislation were passed, his court might be called upon to determine its legality. Mr. Reid also expressed sympathy with their cause, but told them that the Mayor would not support the legislation without the urging of Chief Judge Moultrie. I.D.F. 37-39. Dean Branton advised that, since there was no organized and influential constituency, to lobby for its passage, the prospects for an increase were poor unless the CJA lawyers did “something dramatic to attract attention in order to get any relief.” I.D.F. 40. In March 1983, D.C. Council Chairman Clarke introduced a new and less ambitious bill (No. 5-128), providing for a rate of $35 per hour for CJA work. This time the Judiciary Committee of the Council held a hearing at which numerous witnesses, including representatives of the SCTLA, various local bar groups, the PDS, the Executive Office of the D.C. Courts, and others testified in favor of the increase; no one testified against it except insofar as the Executive Branch of the D.C. Government raised concerns about funding it. Indeed, in June a member of the Council staff told Koskoff that there was no money available to fund the bill. This report was confirmed by the city’s Budget Director, who claimed that the D.C. government supported the increase in principle. SCTLA’s next effort, to interest the Congressional Appropriations Subcommittee on the District of Columbia in federal funding for a CJA increase, was rejected for want of an initiative either from the legislative or from the judicial branch of the D.C. government. Finally, in August 1983, Koskoff and petitioner Reginald Addison, Secretary of SCTLA, “buttonholed” the Mayor in the corridor of the District Building. Like everyone else, the Mayor expressed his sympathy but indicated that there was no money to fund an increase. I.D.F. 41-45. At this point, petitioners turned from lobbying for legislation to increase their wages to organizing a boycott of further CJA appointments at the rates then being paid. They formed a “Strike Committee,” which promptly agreed that a boycott of new CJA appointments was the only way to get a rate increase and adopted as their goal rate increases to $55 per hour for court time and $45 per hour for other time. Petitioner Slaight was designated Chairperson of the Strike Committee. Other CJA lawyers were assigned the tasks of informing all CJA lawyers of the boycott, contacting lawyers who might act as supporters or “strikebreakers,” soliciting the support of courthouse personnel, and contacting the media. I.D.F. 47. On August 11, 1983, SCTLA held a meeting attended by about 100 CJA attorneys. Koskoff and Addison reported on their unsuccessful lobbying efforts. By voice vote, the lawyers resolved not to accept new cases as of September 6 if their rates had not been raised by then. Immediately following this meeting, Perrotta and David Hirsch, a Strike Committee member, drafted a petition declaring that: We, the undersigned private criminal lawyers practicing in the Superior Court of the District of Columbia, agree that unless we are granted a substantial increase in our hourly rate we will cease accepting new appointments under the Criminal Justice Act. The petition, which was placed on the blackboard in the Lawyers’ Lounge in Superior Court, was signed by a number of CJA attorneys. I.D.F. 48-49. On August 26, 1983, Perrotta sent a letter to 40 D.C. law firms that had previously indicated a willingness to do pro bono work, urging them not to accept CJA cases during the boycott. I.D.F. 55. Beginning on September 6, all but a few of the CJA regulars stopped accepting new appointments. The SCTLA Strike Committee actively sought to publicize the boycott by handing out press kits, organizing picket lines, and staging rallies. Several CJA attorneys were interviewed on television and radio. This activity was “all designed to educate the general public about the plight of the CJA lawyers in the expectation that this would result in additional pressure on the District government to increase fees.” I.D.F. 58. The boycott had a severe impact on the criminal justice system, since there was no off-setting cessation of law enforcement activity. Thus, indigent defendants continued to be brought before the court in proceedings that required the services of a lawyer. After only a few days of the boycott, the PDS was swamped with cases. The response of the “uptown” bar to PDS’s call for help was inadequate to meet the need for lawyers, reflecting, the Administrative Law Judge (AU) found, “their universal distaste for criminal law, their special aversion for compelled indigency representation, the near epidemic siege of self-doubt about their ability to handle cases in this field, and their underlying support for the demands of the CJA lawyers.” I.D.F. 60. On September 15, 1983, the PDS leadership sent a hand-delivered letter to the Mayor, Chief Judge Moultrie and Council-member Rolark, who chaired the Judiciary Committee, apprising these officials of “the extremely serious situation that has now developed with respect to the legal representation of indigents in criminal and juvenile delinquency cases in the Superior Court of the District of Columbia.” The letter noted that the resources of the PDS had been “taxed to a point where as of the beginning of next week it can no longer provide this quantity of assistance to the criminal justice system while continuing to render quality, effective legal representation.” With respect to the assistance received from members of the private bar, the PDS noted that “[t]he daily need for representation of indigent defendants (sometimes over 80 such cases a day) has at this point seriously depleted the resources of the private bar who have volunteered to help the court. This leads the Service to conclude that future assistance from this source is problematic, at best.” In conclusion, the letter urged the officials to “decide on an immediate course of action to address the situation” and suggested that “[a] public declaration of your unified support for [Bill No. 5-128] and of specific efforts to effect its enactment would, we believe, help greatly to resolve the present situation.” I.D.F. 61. Chief Judge Moul-trie confirmed to the Mayor the PDS’s claim that the criminal justice system was approaching a crisis point. I.D.F. 62. In response to the letter from the PDS, the Mayor sought and had a meeting with Koskoff, Perrotta, and Addison that evening. He agreed to express his support for Bill No. 5-128 and noted that the matter could be taken up as emergency legislation and enacted and signed on September 20. The Mayor also agreed to support introduction of a second bill, which would have to go through the normal legislative process, to increase CJA fees further to $55 for court and $45 for other time. The next day, September 16, the Mayor wrote to Council-member Rolark to indicate his support for and willingness to fund the increased costs of Bill No. 5-128. Council Chairman Clarke and Councilmember Ro-lark agreed to expedite its passage on an emergency basis. Later that afternoon, the two legislators appeared at a meeting of CJA attorneys where they presented the $35 proposal as a “take it or leave it proposition.” I.D.F. 63-65. Cn September 19, 1983, SCTLA held a meeting to consider the City’s proposal. A majority of the more than 100 CJA attorneys in attendance voted to accept the offer. After this decision was communicated to Council-member Rolark’s office, the Judiciary Committee convened and reported out Bill No. 5-128. The next day, the D.C. Council passed the bill unanimously. I.D. F. 66-68. On September 21, 1983, the CJA attorneys began accepting new assignments. I.D.F. 69. II. In the wake of these events, the FTC filed a complaint alleging that the petitioners had engaged in “a conspiracy to fix prices and to conduct a boycott” in violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, which prohibits “[u]nfair methods of competition,” including restraints of trade in violation of the Sherman Act, 15 U.S.C. § 1 (1982). See FTC v. Cement Institute, 333 U.S. 683, 694, 68 S.Ct. 793, 800, 92 L.Ed. 1010 (1948). The case was referred to- an ALJ who conducted an extensive hearing and issued an initial decision. Relying primarily on the Commission’s then-recent decision in Michigan State Medical Society, 101 F.T.C. 191 (1983), the AU rejected the petitioners’ contentions that their conduct was either political- activity exempted from the antitrust laws by the First Amendment or that it was. a form of petitioning for legislative change, and as such immune from antitrust liability under Eastern R.R. Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127, 81 S.Ct. 523, 5 L.Ed.2d 464 (1961). The AU also concluded that the petitioners’ interest as professionals in ensuring that the Sixth Amendment rights of their clients were not jeopardized by inadequate CJA rates did not exempt their boycott from the antitrust laws; he characterized the claim to the contrary as “simply a restatement of the argument that professional status alone merits a total antitrust exemption,” which was rejected in Goldfarb v. Virginia State Bar, 421 U.S. 773, 95 S.Ct. 2004, 44 L.Ed.2d 572 (1975). Nonetheless, the AU dismissed the Commission’s complaint on the “pragmatic basis” that “there was no harm done.” This observation was itself based on the evidence showing that “city officials (and practically everyone else concerned with the criminal justice system)” believed that the prevailing rates were “inadequate to satisfy the ‘political’ (i.e., constitutional) requirement of effective representation” and that “the CJA lawyers were unlikely to achieve higher fees if they continued to rely on communicative political petitioning alone.” On appeal, the Commission affirmed the AU’s rejection of the petitioners’ defenses but reversed his finding on liability. FTC Decision, 107 F.T.C. at 562-63. The Commission found that: [T]he city’s purchase of CPA legal services for indigents is based on competition. The price offered by the city is based on competition, because the city must attract a sufficient number of individual lawyers to meet its needs at that price. The city competes with other purchasers of legal services to obtain an adequate supply of lawyers, and the city’s offering price is an element of that competition. Indeed, an acknowledgement of this element of competition is implicit in the respondents’ argument that an increase in the CJA fee was “necessary to attract, and retain, competent lawyers.” If the offering price had not attracted a sufficient supply of qualified lawyers willing to accept CJA assignments for the city to fulfill its constitutional obligation, then presumably the city would have increased its offering price or otherwise sought to make its offer more attractive. In fact, however, the city’s offering price before the boycott apparently was sufficient to obtain the amount and quality of legal services that it needed. Id. at 570-71. Petitioners, who are “competitors, individual entrepreneurs, selling their services to the District of Columbia,” had engaged in a “coercive, concerted refusal to deal” in an attempt to restrain competition among themselves. Id. at 571, 573. Because their boycott had “the purpose and effect” of raising prices, the Commission concluded that it was illegal per se, that is, constituted a facially anticompeti-tive agreement. Id. at 572-75. Under the alternative Rule of Reason analysis, the Commission held that SCTLA had failed to establish any “countervailing competitive justifications” for the boycott; it rejected the suggestion that the boycott “would result in higher quality legal services” on the ground that it was irrelevant under the teaching of National Society of Professional Engineers v. United States, 435 U.S. 679, 98 S.Ct. 1355, 55 L.Ed.2d 637 (1978). Id. at 576-77. The Commission also rejected the AU’s finding that the boycott did not have an anticompetitive effect, noting that the rate increase required the city government to spend an additional $4 to $5 million a year for CJA legal services. As for the AU’s finding that “the city [was] supportive of the boycotters’ demands,” the Commission found that it was not supported by the record — which “shows that the District government increased the fees ... only when it was coerced” — and that, even if proved, “the acquiescence or support of some members of the city government would not immunize the [petitioners’] boycott to increase prices from the antitrust laws.” Id. at 577-78. The Commission then considered the petitioners’ claim that their activities were immune from the antitrust laws by virtue of the First Amendment. The Commission concluded that petitioners were not entitled to the protections extended to participants in political boycotts, because: [T]he boycott of the CJA program was agreed upon among competitors and was designed to restrain competition for their direct economic benefit. The members of SCTLA explicitly sought to force concessions from the District government in its role as a buyer of services rather than its role as a policy maker. Id. at 582, 583-89. Nor did their boycott fall within the antitrust immunity established in Noerr for concerted action to influence government decision-making. First, the FTC held, Noerr applies to efforts to solicit antieompetitivé government action through lobbying or publicity, not by means of a coercive boycott. Id. at 589-95. Second, the anticompetitive effects of the petitioners’ boycott resulted directly from the collective action of the boycotters and not, as in Noerr, from the independent action of the government: “The restraint was on the government, not by the government.” Id. at 597 (emphasis in original). Finally, the FTC found no policy reason for granting an immunity from antitrust liability simply because the government rather than a private party was harmed by the boycott. The Commission therefore concluded that “[t]he mere fact that the government, as the only purchaser of CJA services, was the target does not protect their boycott from regulation.” Id. at 599. Having determined that the boycott was an unreasonable restraint of trade and that it was not protected by the First Amendment, the Commission entered an order requiring the petitioners to cease and desist from various boycott-related activities, compelling SCTLA to notify its members of the Commission’s decision, and imposing upon the individual petitioners a duty to notify the Commission of changes- in, the nature of their legal practice for a five year period. III. Petitioners raise a number of closely related objections to the FTC decision, but they do not seriously dispute that, if their conduct can properly be viewed through the ordinary lens of antitrust law, it constitutes an unreasonable restraint of trade. Instead, they argue strenuously that conventional antitrust analysis focuses attention on factors that are irrelevant in the peculiar market for their services — where demand is set by the requirements of the Sixth Amendment and price is set by the legislature — and overlooks the truly important First Amendment issues raised by the political conduct and context from which this case arises. Thus, they argue generally that they are immune from antitrust liability by reason of the Noerr-Penning-ton doctrine, which applies to those who would petition government to redress their grievances; specifically, they argue that the boycott was political activity protected under Noerr, notwithstanding its coercive element, because it was designed to influence the passage of legislation. In the same vein, even if Noerr does not apply to all conduct designed to influence the legislature, “then it is necessary, in order to avoid trenching excessively on First Amendment interests, to create an exception [from the antitrust laws] for nonviolent expressive conduct on issues of public concern.” As a further alternative, petitioners argue that “the Commission erred in failing to undertake an analysis of [their] market power.” They argue that a per se rule is inappropriate as a matter both of antitrust and of constitutional analysis; and that, if the FTC is remitted to a Rule of Reason analysis, then “no antitrust violation can be found” because “the record clearly demonstrates the absence of market power.” We agree with petitioners in one important regard: the Commission must apply the antitrust laws to the facts of this case with a special solicitude for the First Amendment rights of these petitioners and others who, like them, engage in concerted action to advance both their political agenda and their own economic welfare at the expense of government. Unlike petitioners, however, we infer from this not that the government, in its role as a purchaser of goods and services, is left unprotected by the antitrust laws. Instead, we think it both necessary and sufficient that those laws be applied prudently and with sensitivity. In this instance, such prudence and sensitivity require that the FTC prove that petitioners had economic power in a relevant market, even though such a showing is generally not required when competitors attempt to raise price by jointly refusing to deal with a would-be customer. Otherwise, there is simply too much risk that the antitrust laws will be used to penalize those who are able, through collective action, to wield political power in a way that serves their economic interest. We consider first then whether, apart from any First Amendment protection to which it may be entitled, the SCTLA boycott was in violation of the antitrust laws. Like the Commission, we believe that petitioners’ boycott constituted a classic restraint of trade within the meaning of Section 1 of the Sherman Act. Agreements among competing suppliers to restrict the available quantity of their product displace competition and thus tend to force up prices. This constriction of supply is the essence of “price-fixing,” whether it be accomplished by agreeing upon a price, which will decrease the quantity demanded, or by agreeing upon an output, which will increase the price offered. See, e.g., United States v. Socony-Vacuum Oil Co., 310 U.S. 150, 218-23, 60 S.Ct. 811, 841-44, 84 L.Ed. 1129 (1940); United States v. Trenton Potteries Co., 273 U.S. 392, 394, 397-98, 47 S.Ct. 377, 378, 379-80, 71 L.Ed. 700 (1927); American Column & Lumber Co. v. United States, 257 U.S. 377, 410-12, 42 S.Ct. 114, 120-21, 66 L.Ed. 284 (1921); San Juan Racing Ass’n, Inc. v. Asociacion de Jinetes de Puerto Rico, Inc., 590 F.2d 31 (1st Cir.1979). In this case, there is no room for doubt that there was a legally sufficient agreement among the defendants to restrict the supply of their services; the individual petitioners do not deny that they agreed among themselves to withhold their services from the District of Columbia, a willing purchaser. This agreement was made at the SCTLA meeting of August 11, 1983, memorialized in the petition drafted by Perrotta, and implemented through the efforts of the Strike Committee. Nor is there any doubt that restraining competition in the market for their services was one of the purposes of the petitioners' conduct. Both the ALJ and the Commission found what the record clearly reflects, viz., that the petitioners expected their boycott to disrupt the administration of the District’s criminal justice system; to that end tried to dissuade non-SCTLA lawyers from taking CJA cases in their stead, which is to say, from competing with them; and intended the resulting pressure to force the District to accede to their demand for increased compensation. Petitioners suggest that this sort of traditional antitrust analysis should not be applied to what they characterize as a “totally non-traditional market.” We are not at liberty, however, to suspend the application of the antitrust laws to particular markets that we might view as being “non-traditional.” The antitrust laws prescribe competition in all markets, in all seasons, except as Congress may provide an exception. Instead, it is our task to apply the antitrust laws in a discriminating manner that responds to the peculiar characteristics of the market in question, as it is the task of learned counsel for petitioners to identify any peculiarities of that market that may require a departure from the usual analysis. Here, petitioners suggest that one cannot find “traditional price-fixing” because “the ‘price-fixing’ has been done by the D.C. City Council through legislation.” In addition, we are told that the demand for CJA services is not the product of “traditional market forces” because it is generated by the Sixth Amendment requirement that the government make available counsel to criminal defendants who cannot otherwise afford a lawyer. In sum: [T]he total picture is a price-fixed market in which the suppliers are price takers, the consumers (i.e., the creators of demand) pay nothing, and the third-party payor (the D.C. Government) is a compulsory market participant, not a competitive insurance carrier. Pet. Reply at 4. But there is nothing in any of this that would justify a departure from conventional antitrust analysis. The Commission correctly determined that the CJA regulars act as “competitors” in the only sense that matters for antitrust analysis: They are individual business people supplying the same service to a customer, and as such may be capable, through a concerted restriction on output, of forcing that customer to pay a higher price for their service. That the D.C. government, like the buyers of many other services and commodities, prefers to offer a uniform price to all potential suppliers does not alter in any way the anti-competitive potential of the petitioners’ boycott. The antitrust laws do not protect only purchasers who negotiate each transaction individually, instead of posting a price at which they will trade with all who come forward. Nor should any significance be assigned to the origin of the demand for CJA services; here the District may be compelled by the Sixth Amendment to purchase legal services, there it may be compelled by the voters to purchase street paving services. The reason for the government’s demand for a service is simply irrelevant to the issue of whether the suppliers of it have restrained trade by collectively refusing to satisfy it except upon their own terms. We therefore conclude, as did the Commission, that the petitioners engaged in a “restraint of trade” within the meaning of Section 1. Of course, the Sherman Act condemns only “unreasonable” restraints of trade. See Chicago Board of Trade v. United States, 246 U.S. 231, 238, 38 S.Ct. 242, 244, 62 L.Ed. 683 (1918); Standard Oil Co. v. United States, 221 U.S. 1, 60, 31 S.Ct. 502, 515, 55 L.Ed. 619 (1911). Determining whether á restraint is unreasonable generally requires that it be examined in the context of the particular industry on which it operates, and that its anticompetitive potential be weighed against any pro-competitive justifications that can be Offered on its behalf. See Chicago Board of Trade, 246 U.S. at 238, 38 S.Ct. at 244. “Business, certainty and litigation efficiency,” however, require that agreements “that would always or almost always tend to restrict competition and decrease output,” be condemned per se, that is, without an elaborate analysis of the industry or even careful consideration of the proffered justifications for the restraint. Arizona v. Maricopa County Medical Soc., 457 U.S. 332, 344, 102 S.Ct. 2466, 2473, 73 L.Ed.2d 48 (1982); Broadcast Music, Inc. v. Columbia Broadcasting System, Inc., 441 U.S. 1, 19-20, 99 S.Ct. 1551, 1562, 60 L.Ed.2d 1 (1979) (BMI). The Commission concluded that petitioners’ concerted effort to raise the price of their service merited such per se condemnation. A price-fixing boycott is typically disposed of summarily under the Sherman Act, because, as the Supreme Court has consistently held, “the likelihood that horizontal price and output restrictions are anticompetitive is generally sufficient to justify application of the per se rule without inquiry into the special characteristics of a particular industry.” National Collegiate Atheletic Ass’n v. Board of Regents, 468 U.S. 85, 100 n. 21, 104 S.Ct. 2948, 2960, 82 L.Ed.2d 70 (1984) (NCAA); see Maricopa County, 457 U.S. at 351, 102 S.Ct. at 2476-77; BMI, 441 U.S. at 19-20, 99 S.Ct. at 1562; Professional Engineers, 435 U.S. at 692, 98 S.Ct. at 1365. We recognize that the application of the per se rule to horizontal agreements, including boycotts, has become increasingly less rigid in recent years. This development was discussed in detail in Rothery Storage & Van Co. v. Atlas Van Lines, Inc., 792 F.2d 210, 223-29 (D.C.Cir.1986). There we observed that several Supreme Court cases, most notably, United States v. Topco Associates, 405 U.S. 596, 92 S.Ct. 1126, 31 L.Ed.2d 515 (1972), and United States v. Sealy Corp., 388 U.S. 350, 87 S.Ct. 1847, 18 L.Ed.2d 1238 (1967), insofar as they appeared to hold that any horizontal restraint was a per se violation of section 1, “must be regarded as effectively overruled” by more recent decisions. Rothery, 792 F.2d at 226. BMI, 441 U.S. at 1, 99 S.Ct. at 1551; NCAA, 468 U.S. at 85, 104 S.Ct. at 2948; and Northern Wholesale Stationers, Inc. v. Pacific Stationers & Printing Co., 472 U.S. 284, 105 S.Ct. 2613, 86 L.Ed.2d 202 (1985), have decidedly shortened the reach of the per se rule. In the first two of these cases, the Court declined to apply the rule to horizontal arrangements affecting price or quantity, in each case reversing the court of appeals’ “literal approach” to price-fixing on the ground that “the challenged practices may have redeeming competitive virtues.” BMI, 441 U.S. at 9, 13, 99 S.Ct. at 1557, 1559; NCAA, 468 U.S. at 100-04, 104 S.Ct. at 2959-61. Indeed, in Pacific Stationery, the Court again reversed the lower court’s per se analysis, this time of a “group boycott” by a wholesale purchasing cooperative that expelled one of its members for failing to comply with a rule. The Court noted that “such cooperative arrangements would seem to be ‘designed to increase economic efficiency and render markets more, rather than less, competitive’ ” because they permit “the participating retailers to achieve economies of scale ..., and also ensure[] ready access to a stock of goods that might otherwise be unavailable on short notice.” 472 U.S. at 295, 105 S.Ct. at 2620 (quoting BMI, 441 U.S. at 20, 99 S.Ct. at 1562). Moreover, “[w]holesale purchasing cooperatives must establish and enforce reasonable rules in order to function effectively.” Id. Accordingly, “[t]he mere allegation of a concerted refusal to deal does not suffice” to trigger the per se rule, “because not all concerted refusals to deal are predominantly anticompetitive.” Id. 472 U.S. at 298, 105 S.Ct. at 2621. The Supreme Court’s manifestly heightened concern with the effect of the per se rule on economic efficiency is not sufficient, however, to put this case beyond the grasp of that rule. As Rothery noted, the Court’s recent cases have all examined the economic wisdom of the per se rule in the context of horizontal restraints that were “ancillary” to “an integration of the economic activities of the parties and appealed] capable of enhancing the group’s efficiency.” Rothery, 792 F.2d at 229. Here, by contrast, petitioners have advanced no claim that their boycott was ancillary and necessary to some larger, cooperative venture that permitted them to operate more efficiently. Instead, restraining competition and thus raising price was the raison d’etre of the boycott. Nothing in the two intervening Terms of the Supreme Court suggests a need to qualify our observation in Rothery that (as Judge Taft had seen from the outset), “a naked horizontal restraint, one that does not accompany a contract integration, can have no purpose other than restricting output and raising prices, and so is illegal per se.” Id. at 229 (citing United States v. Addyston Pipe & Steel Co., 85 F. 271 (6th Cir.1898), aff’d, 175 U.S. 211, 20 S.Ct. 96, 44 L.Ed. 136 (1899)). Perhaps economic efficiency is not the only garb in which an otherwise naked restraint can be made respectable in a civilized society, however. Petitioners seek to wrap themselves in the mantle of the Sixth Amendment, and when the constitutional rights of their clients are invoked, we are indisposed to disregard their argument merely because it is novel or would require us to acknowledge a , new exception to the per se rule. Efficiency may indeed be the only rationale intrinsic to the logic of the antitrust laws for exempting a horizontal restraint from per se condemnation. If the integrity of the Sixth Amendment right to counsel requires it, though, we should not shrink from acknowledging a constitutional limitation on the reach of the per se rule. Nor does the per se rule bar us from evaluating a novel and potentially significant defense. For, as Professor Areeda has noted, “[c]ourts do not ordinarily mean to preclude themselves from future thoughts about new matters which have not previously been considered.” VII P. Areeda, Antitrust Law ¶ 1510a at 416 (1986). Moreover, considering petitioner’s justification does not threaten to enmesh us in an “elaborate industry analysis.” Professional Engineers, 435 U.S. at 692, 98 S.Ct. at 1365. In Professional Engineers, for example, the Supreme Court indulged in a limited evaluation of the non-efficiency justification proffered by the defendant. Although the Court ultimately rejected the defendant’s safety rationale for displacing per se condemnation with Rule of Reason analysis, see id. at 693-95, 98 S.Ct. at 1366-67, we can hardly give shorter shrift to an argument based upon the constitutional right to counsel. Petitioners’ argument proceeds as follows: SCTLA’s boycott was really a protest responding to “a ‘market failure’ situation brought on by the D.C. Government’s inflexible pricing scheme.” Such protests against government pricing policies “are in fact carried out by picturesque ‘small people’ in the Jeffersonian tradition — independent farmers [spilling milk to protest government price support levels and] gasoline station operators [closing to protest price regulations limiting their markup].” Such actions aim to benefit consumer welfare by offsetting a “market failure due to government action.” According to petitioners, “governments frequently distort markets by setting prices, rationing, or regulating prices — because competitive pricing would produce ‘politically unacceptable’ results.” In this case, we are told, “competitive pricing” was politically unacceptable to the D.C. Government because of the underlying antipathy of the . taxpaying (and voting) public to the rights of indigent defendants. This antipathy induced the District to set the CJA rates at a level that was too low to provide the effective representation mandated by the Constitution. Since persuasion was unlikely to alter this politically popular but constitutionally dubious result, coercion by the only means available, a collective boycott, was necessary to raise the prevailing rates to the “competitive” price. Although the matter is not entirely free from doubt, we interpret the “competitive price” in this argument to mean either the price that defendants would willingly pay for counsel if only they were not indigent, or at least what is surely a lesser amount, the price necessary to call forth an adequate supply of legal representation of a quality sufficient to secure the constitutional right to effective assistance of counsel. Before we evaluate the validity of this defense against the per se rule, we pause briefly to discuss a fundamental premise upon which the petitioners rely, viz., that increasing the hourly -rate for CJA legal services would improve the quality of representation to indigent defendants. The FTC has not seriously challenged this assumption, but neither has the SCTLA attended much to establishing the relationship it assumes between the price and the quality of CJA lawyering. It is easy enough to imagine that an increase in the ceiling on compensation for each case would lead to better representation since attorneys would be able to devote more hours to each case without fear of being denied payment for their efforts; this would be true if the per case ceiling was a constraint in a significant number of cases. But the ceiling on compensation was, at best, a minor reason for the boycott. As the SCTLA petition noted, the major purpose of the boycott was obtaining “a substantial increase in [the] hourly rate.” It is not immediately clear whether increasing the hourly rate paid to CJA regulars would increase the quality of the services they provide. The record is not entirely barren on this point. Some witnesses suggested that higher hourly rates would enable attorneys to take on fewer cases and thus, perhaps, to provide better service because their attention would be less fragmented. On the other hand, one of the leaders of the SCTLA boycott testified that the increased rates made it possible for him to pay for support services that, in turn, enabled him to take on more cases. But it is surely fond for us to speculate whether increased fees produce more or less effort on behalf of clients; economists have been unable to determine a priori the effect of increased wages on the trade-off between leisure and work, and we can hardly purport to do so on the basis of a record developed with other questions principally in mind. It is easier to see why increasing CJA rates might improve the quality of legal services, however, when one considers the effect of the rate increase on the size and quality of the pool of attorneys willing to take on CJA work. The leaders of the SCTLA boycott quite reasonably expected that a significant rate increase would induce more attorneys to take on CJA cases. Indeed, some CJA regulars opposed the boycott for just that reason. This expectation and fear was fully realized. There has been a substantial increase in the number of attorneys willing to take CJA cases, and a corresponding decrease — it is not clear whether voluntary or involuntary — in the caseloads of the old regulars. It is inferable that the lawyers newly attracted to CJA work by the increased hourly rates had been able to earn more in other types of practice than they could in CJA work under the pre-boycott rate schedule; insofar as lawyers respond to pecuniary incentives, as opposed to the other compensations they may derive from their work, it is reasonable to suppose that the lawyers attracted to CJA work at the higher rates were, in market terms, better lawyers. (Of course, it is possible in the representation of indigent criminal defendants that humanitarian instincts or ideological zeal contribute more to the quality of representation than the talents of lawyers that are brought out only by higher wages; still, even altruists must often feed a family and so respond, at the margin, to increased incentives.) And as the AU noted, while “a dramatic transformation in the quality of indigency practice is unlikely,” the increased rates might provide an incentive for the more dedicated CJA lawyers to remain in the practice for a longer period of time. I.D.F. 72. These factors suggest that the quality of CJA services is likely to be improved in some indeterminate degree by a rate increase and we will assume, for the present discussion, that this is so. We must next consider whether such an increase in quality can justify, petitioners’ boycott. The Commission concluded that it could not, relying primarily upon Professional Engineers. In that case, the Court considered a provision in the Society’s “canon of ethics” that effectively prohibited competitive bidding by its members. In its defense, the Society suggested that under the Rule of Reason the canon was justified because “competitive pressure to offer engineering services at the lowest possible price would adversely affect the quality of engineering,” and thus endanger public safety. 435 U.S. at 685, 98 S.Ct. at 4362. The Court accepted the posited relationship between price and quality, and the risk that could result, but noted that, in the absence of the canon, a purchaser could always choose to forego the price advantages of competitive bidding in order to improve the quality of the product, and an individual seller of professional services could independently refrain from bidding for work. Id. at 694, 98 S.Ct. at 1366. The Court therefore found the Society’s ethical canon to be unreasonable. The ban on competitive bidding imposed the seller’s “views of the costs and benefits of competition on the entire marketplace,” and conflicted with the legislative judgment embodied in the Sherman Act that competition “will produce not only lower prices, but also better goods and services.” Id. at 695, 98 S.Ct. at 1367. The argument advanced by the defendants in Professional Engineers constituted, in the words of the Supreme Court, “a frontal assault on the basic policy of the Sherman Act.” Id. at 695, 98 S.Ct. at 1367. For the engineers were far from unique in being able to posit at least a plausible relationship between the quality, of their product and the elimination of competition. As the Court noted: Exceptions to the Sherman Act for potentially dangerous goods and services would be tantamount to a repeal of the statute. In our complex economy, the number of items that may cause serious harm is almost endless — automobiles, drugs, foods, aircraft components, heavy equipment, and countless others, cause serious harm to individuals or to the public at large if defectively made. The judiciary cannot indirectly protect the public against this harm by conferring monopoly privileges on the manufacturers. Id. at 695-96, 98 S.Ct. at 1367. We need hardly add defective legal representation of a criminal defendant to the court’s list of potentially harmful goods and services. To be sure, SCTLA makes a more limited claim regarding the quality of their services than that advanced by the Society of Professional Engineers: Petitioners here claim only that the usual assumption that competition will produce “better goods and services” does not apply where the market price is subject to the distorting influence of the “political process,” and is particularly inapplicable where the polity is a purchasing agent for the least influential segment of society, indigents accused of crimes. The difficulty with this theory is immediately apparent, however, when one considers how a court is to evaluate a claim that the political process had failed to arrive at the “competitive price.” No doubt most business people who sell to the government are of the opinion that they could better serve the public if only the price of their goods or services were increased. Many of them may also be able to show that price is kept down by the force of the “political pressure” exerted by some group with opposing interests — such as taxpayers. Doctors who provide medical services to beneficiaries of the Medicaid program, for example, may be able to show that the rates of reimbursement set by the federal government fall below the price they charge for high quality medical services. in the competitive market, and that they systematically skimp in their treatment of Medicaid patients as a result. Moreover, they may be able to show that the rates for reimbursement of participating doctors are held down by the unwillingness of taxpayers to respond sympathetically to the medical needs of the indigent. Regardless of how conclusive their evidence, however, the judicial branch is not licensed to pass judgment upon, the adequacy of the expenditures authorized by the political branches of government except in those rare cases (of which more below) where there is a constitutionally mandated standard that sets the minimum level of service that the state must provide. Petitioners may choose to call it a “market failure” when the political process responds less to the demands of the weak — although it seems to be more of a tautology than a description — but call it what one will, courts are in no position to determine whether such a “failure” has occurred, much less to remedy it by handing out exemptions from the Sherman Act. Nor are we prepared to take the admittedly more manageable but even less responsible course of simply permitting all coercive boycotts aimed at a government. Congress surely did not mean to leave governments so vulnerable to extortion by the suppliers of the goods and services they need. There is, then; no general exception to Professional Engineers for restraints of trade aimed at prices set through the political process. Without emphasizing the point, petitioners have at times suggested that their boycott was necessary to vindicate the constitutional rights of their clients, i.e., that the pre-boycott rates they were paid did not elicit the constitutionally required minimum level of legal assistance for the accused. We recognize that the legislature may be required to alter its level of spending in order to accommodate rights grounded in the Constitution. If, for example, the political process results in conditions of confinement that do not satisfy the standards of the Eighth Amendment, the courts may order remedial steps that in effect require the government to devote additional resources to the prison system. In such cases, the constitutional provision establishes a standard by which the court can evaluate the choices of the political branches. Even there, we note, a court would not ordinarily have reason to order a specific level of expenditure, since it can instead specify the condition to be achieved and leave it to the government to fulfill that condition in the most economical way it can find. Since they have not argued the point, however, we need not decide the novel question whether a contract, combination, or conspiracy that would otherwise be an unlawful restraint of trade under the Sherman Act may be justified on the ground that it was necessary to vindicate the constitutional rights of others. Counsel for the petitioners acknowledged at oral argument before the Commission that the pre-boycott level of services was adequate to secure the Sixth Amendment rights of their clients. See 107 F.T.C. at 587. It may be true, as the amicus American Civil Liberties Fund of the National Capital Area suggests, that SCTLA was reluctant to introduce evidence demonstrating that its members committed legal malpractice on a regular basis. Surely less would have been required, though. For example, petitioners could have argued that the per case ceiling was inherently inadequate to allow for effective assistance in some cases without exposing themselves to any embarrassment. They could likewise have argued that the quality of low-paid representation falls below the constitutional minimum without inviting criticism by referring to statistics on cases pleaded instead of tried, in comparison with other jurisdictions, and such other indices as accomplished counsel could devise under the spur of incentive. Instead, they have simply not pursued the argument, and their occasional references to the constitutional underpinnings of their boycott are but so much parsley to garnish the arguments they have made. Thus, we decide this case as it comes to us, upon a record that does not support, and by petitioners who do not seek, a finding that the pre-boycott rates resulted in systematic violations of the Sixth Amendment. To summarize thus far, we hold that the SCTLA boycott was an unlawful restraint of trade. Since no “pro-competitive” justification, that is, no justification that is consistent with the purposes of the antitrust laws, has been offered in its defense, and no constitutional barrier has been interposed, the boycott could properly be condemned as a per se violation of Section 1 of the Sherman Act, unless it also comes within the protection of the First Amendment. IV: We next consider 'whether the boycott may be immune from the Sherman Act as an exercise of the petitioners’ constitutional rights to speak and to petition the government for the redress of their grievances. Relying upon the Supreme Court’s decisions in Eastern R.R. Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127, 81 S.Ct. 523, 5 L.Ed.2d 464 (1961), and NAACP v. Claiborne Hardware Co., 458 U.S. 886, 102 S.Ct. 3409, 73 L.Ed.2d 1215 (1982), the petitioners argue that nonviolent conduct, including a suppliers’ boycott, designed solely to influence the passage of legislation, is protected from the proscriptions of the antitrust laws. In the alternative, petitioners argue that the Commission, at a minimum, must “create an exception for non-violent conduct designed to dramatize public issues (i.e., issues of interest to a broader group than the boy-cotters themselves).” The plaintiffs in Noerr, á number of truck operators and their trade association, alleged that a group of railroads had conspired to monopolize the long-distance freight business by conducting a publicity campaign aimed at encouraging the adoption of laws and law enforcement practices destructive of the trucking business. 365 U.S. at 129, 81 S.Ct. at 525. The Court thought it clear, for two reasons, that “the Sherman Act does not prohibit two or more persons from associating together in an attempt to persuade the legislature or the executive to take particular action with respect to a law that would produce a restraint or a monopoly.” Id. at 136, 81 S.Ct. at 529. First, the Court stressed the desirability, in a representative democracy, of allowing interested parties to make their views known to the government: [To] hold that the government retains the power to act in this representative capacity and yet hold, at the same time, that the people cannot inform the government of their wishes would impute to the Sherman Act a purpose to regulate, not business activity, but political activity, a purpose which would have no basis whatever in the legislative history of the Act. Id. at 137, 81 S.Ct. at 529. Second, the Court noted that: The right of petition is one of the freedoms protected by the Bill of Rights, and we cannot, of course, lightly impute to Congress an intent to invade these freedoms. Id. at 138, 81 S.Ct. at 530. In response to the charge that the railroads had intended their publicity campaign to hurt the truckers directly by damaging the goodwill of their customers and of the public, the Court held that any such “direct injury” was merely “an incidental effect of the railroads’ campaign to influence governmental action.” Id. at 143, 81 S.Ct. at 532. The prohibitions of the Sherman Act would be applicable only if a publicity campaign ostensibly directed toward influencing governmental action were a “mere sham.” Id. at 144, 81 S.Ct. at 533. Petitioners would assimilate their boycott to the protected lobbying activity considered in Noerr, on the ground that the Noerr Court distinguished broadly between “business activity” and “political activity,” and held that the Sherman Act was intended to regulate the former but not the latter. SCTLA argues that “the teaching of Noerr is that the right to petition is of sufficient importance that genuine efforts to influence the legislature are not subject to the antitrust laws, even if in the process they result in ancillary anticompetitive effects in the marketplace that would otherwise constitute an antitrust violation.” Since the SCTLA boycott was clearly an effort to influence the legislative process, SCTLA asserts that it qualifies as “political activity” exempt from the Sherman Act. In evaluating petitioners’ argument, we note first that nothing in Noerr itself suggests that,- by distinguishing between “business” and “political” activity, the Court intended to remove from the reach of the Sherman Act all conduct that is aimed at obtaining favorable legislation. Indeed, the Noerr court specifically distinguished between lobbying and boycotts. Collective efforts to persuade the legislature or the executive to take particular action, the Court said: bear very little if any resemblance to the combinations normally held violative of the Sherman Act, combinations ordinarily characterized by an express or implied agreement or understanding that the participants will jointly give up their trade freedom, or help one another to take away the trade freedom of others through the use of such devices as price-fixing agreements, boycotts, market-division agreements, and other similar arrangements. 365 U.S. at 136, 81 S.Ct. at 529 (citations omitted). Were we guided solely by Noerr, therefore, we would be disinclined to accept the expansive immunity claim advanced by petitioners. Happily, any lingering doubt about the overbreadth of petitioners’ interpretation was resolved by the Supreme Court’s recent decision in Allied Tube & Conduit Corp. v. Indian Head, Inc., — U.S. —, 108 S.Ct. 1931, 100 L.Ed.2d 497 (1988). Allied Tube addressed the antitrust immunity available to competitors who agree to exclude a rival from the market by using the standard-setting process of a private organization, there the National Fire Protection Association. In the course of evaluating the respondent’s claim to Noerr immunity, however, the Court set forth a general approach for determining whether collective conduct falls within the reach of Noerr. “The scope of [Noerr’s] protection,” the Court wrote, “depends ... on the source, context, and nature of the anticompetitive restraint at issue.” Id. 108 S.Ct. at 1936. First, concerning the source of the restraint, a court must consider whether it is the result of valid governmental or private action. If the former, “those urging the governmental action enjoy absolute immunity from antitrust liability for the anticom-petitive restraint.” Id. If the latter, the restraint is immune from antitrust liability only if it is “ ‘incidental’ to a valid effort to influence governmental action.” Id. at 1940 (quoting Noerr, 365 U.S. at 143, 81 S.Ct. at 532). The Court repeatedly stressed that not all efforts to secure government action merit protection under Noerr; instead, “[t]he validity of such efforts, and thus the applicability of Noerr immunity, varies with the context and nature of the activity.” Id. 108 S.Ct. at 1936; see also id. at 1939. These two factors— context and nature — determine whether the conduct at issue is more appropriately characterized as “political activity with a commercial impact,” immune from antitrust liability under Noerr, or as “commercial activity with a political impact,” which must be evaluated “under the standards of conduct set forth in the antitrust laws.” Id. at 1941, 1942. Here, as in Allied Tube, the restraint as issue, i.e., the boycott, plainly resulted from private, rather than governmental, action. Thus, the conduct is immune under Noerr only if it was a valid effort to influence governmental action, which turns on whether it was primarily “commercial” or “political” in nature. Unlike Allied Tube, the relevant conduct here did take place in a political context— the legislative arena — which weighs in favor of petitioners’ claim to Noerr immunity for their boycott. See id. at 1936-37, 1939; see also id. at 1941 n. 11. The nature of the activity, however, counsels strongly against Noerr immunity. Concerted refusals to deal by competitors cannot be regarded as “activity that has traditionally been regulated with extreme caution,” id. at 1940 (citing Noerr, 365 U.S. at 141, 81 S.Ct. at 531), or as “activity that ‘bear[s] little if any resemblance to the combinations normally held violative of the Sherman Act.’ ” Id. (quoting Noerr, 365 U.S. at 136, 81 S.Ct. at 529). Moreover, SCTLA did not “confine itself to efforts to persuade”; instead, it “organized and orchestrated” a concerted effort to restrict the supply of services in the marketplace. See id. Although the boycott thus seems to have been commercial in nature, petitioners, citing to the Supreme Court’s decision in NAACP v. Claiborne Hardware Co., 458 U.S. 886, 102 S.Ct. 3409, 73 L.Ed.2d 1215 (1982), nonetheless maintain that it was indeed “political activity” (variously referred to as “political petitioning,” “efforts to mobilize political pressure,” and even as “political theatre”). In Claiborne Hardware, the Court reversed a state tort ju