United States v. Apple, Inc. (791 F.3d 290, 2015)

RAYMOND J. LOHIER (Circuit Judge) files a separate concurring opinion, joining in the judgment and in the majority opinion except for Part II.B.2.

DENNIS JACOBS (Circuit Judge) files a separate dissenting opinion.

DEBRA ANN LIVINGSTON, Circuit Judge:

Since the invention of the printing press, the distribution of books has involved a fundamentally consistent process: compose a manuscript, print and bind it into physical volumes, and then ship and sell the volumes to the public. In late 2007, Amazon.com, Inc. (“Amazon”) introduced the Kindle, a portable device that carries digital copies of books, known as “ebooks.” This innovation had the potential to change the centuries-old process for producing books by eliminating the need to print, bind, ship, and store them. Amazon began to popularize the new way to read, and encouraged consumers to buy the Kindle by offering desirable books — new releases and New York Times bestsellers — for $9.99. Publishing companies, which have traditionally stood at the center of the multi-billion dollar book-producing industry, saw Amazon’s ebooks, and particularly its $9.99 pricing, as a threat to their way of doing business.

By November 2009, Apple, Inc. (“Apple”) had plans to release a new tablet computer, the iPad. Executives at the company saw an opportunity to sell ebooks on the iPad by creating a virtual marketplace on the device, which came to be known as the “¡Bookstore.” Working within a tight timeframe, Apple went directly into negotiations .with six of the major publishing companies in the United States. In two months, it announced that five of those companies — Hachette, HarperCollins, Macmillan, Penguin, and Simon & Schus-ter (collectively, the “Publisher Defendants”) — had agreed to sell ebooks on the iPad under arrangements whereby the publishers had the authority to set prices, and could set the prices of new releases and New York Times bestsellers as high as $19.99 and $14.99, respectively. Each of these agreements, by virtue of its terms, resulted in each Publisher Defendant receiving less per ebook sold via Apple as opposed to Amazon, even given the higher consumer prices. Just a few months after the ¡Bookstore opened, however, every one of the Publisher Defendants had taken control over pricing from Amazon and had raised the prices on many of their ebooks, most notably new releases and bestsellers.

The United States Department of Justice (“DOJ” or “Justice Department”) and 33 states and territories (collectively, “Plaintiffs”) filed suit in the United States District Court for the Southern District of New York, alleging that Apple, in launching the ¡Bookstore, had conspired with the Publisher Defendants to raise prices across the nascent ebook market. This agreement, they argued, violated § 1 of the Sherman Antitrust Act, 15 U.S.C. § 1 et seq. (“Sherman Act”), and state antitrust laws. All five Publisher Defendants settled and signed consent decrees, which prohibited them, for a period, from restricting ebook retailers’ ability to set prices. Then, after a three-week bench trial, the district court (Cote, J.) concluded that, in order to induce the Publisher Defendants to participate in the iBookstore and to avoid the necessity of itself competing with Amazon over the retail price of ebooks, Apple orchestrated a conspiracy among the Publisher Defendants to raise the price of ebooks — particularly new releases and New York Times bestsellers. United States v. Apple Inc., 952 F.Supp.2d 638, 647 (S.D.N.Y.2013). The district court found that the agreement constituted a per se violation of the Sherman Act and, in the alternative, unreasonably restrained trade under the rule of reason. See id. at 694. On September 5, 2013, the district court entered final judgment on the liability finding and issued an injunctive order that, inter alia, prevents Apple from entering into agreements with the Publisher Defendants that restrict its ability to set, alter, or reduce the price of ebooks, and requires Apple to apply the same terms and conditions to ebook applications sold on its devices as it does to other applications.

On appeal, Apple contends that the district court’s liability finding was erroneous and that the provisions of the injunction related to its pricing authority and ebook applications are not necessary to protect the public. Two of the Publisher Defendants — Macmillan and Simon & Schus-ter — join the appeal, arguing that the portion of the injunction related to Apple’s pricing authority either unlawfully modifies their consent decrees or should be judicially estopped. We conclude that the district court’s decision that Apple orchestrated a horizontal conspiracy among the Publisher Defendants to raise ebook prices is amply supported and well-reasoned, and that the agreement unreasonably restrained trade in violation of § 1 of the Sherman Act. We also conclude that the district court’s injunction js lawful and consistent with preventing future anticompeti-tive harms.

Significantly, the dissent agrees that Apple intentionally organized a conspiracy among the Publisher Defendants to raise ebook prices. Nonetheless, it contends that Apple was entitled to do so because the conspiracy helped it become an ebook retailer. In arriving at this startling conclusion — based in large measure on an argument that Apple itself did not assert— the dissent makes two fundamental errors. The first is to insist that the vertical organizer of a horizontal price-fixing conspiracy may escape application df the per se rule. This conclusion is based on a misreading of Supreme Court precedent, which establishes precisely the opposite. The dissent fails to apprehend that the Sherman Act outlaws agreements that unreasonably restrain trade and therefore requires evaluating the nature of the restraint, rather than the identity of each party who joins in to impose it, in determining whether the per se rule is properly invoked. Finally (and most fundamentally) the dissent’s conclusion rests on an erroneous premise: that one who organizes a horizontal price-fixing conspiracy — the “supreme evil of antitrust,” Verizon Commc’ns Inc. v. Law Offices of Curtis V. Trinko, LLP, 540 U.S. 398, 408, 124 S.Ct. 872, 157 L.Ed.2d 823 (2004) — among those competing at a different level of the market has somehow done less damage to competition than its co-conspirators.

The dissent’s second error is to assume, in effect, that Apple was entitled to enter the ebook retail market on its own terms, even if these terms could be achieved only via its orchestration of and entry into a price-fixing agreement with the Publisher Défendants. The dissent tells a story of Apple organizing this price-fixing conspiracy to rescue ebook retailers from, a monopolist with insurmountable retail power. But this tale is not spun from any factual findings of the district court. And the dissent’s armchair analysis wrongly treats the number of ebook retailers at any moment in the emergence of a new and trans-formative technology for book distribution as the sine qua non of competition in the market for trade ebooks.

More fundamentally, the dissent’s theory — that the presence of a strong competitor justifies a horizontal price-fixing conspiracy- — endorses a concept of marketplace vigilantism that is wholly foreign to the antitrust laws. By organizing a price-fixing conspiracy, Apple found an easy path to opening its iBookstore, but it did so by ensuring that market-wide ebook prices would rise to a level that it, and the Publisher Defendants, had jointly agreed upon. Plainly, competition is not served by permitting a market entrant to eliminate price competition as a condition of entry, and it is cold comfort to consumers .that they gained a new ebook retailer at the expense of passing control over all ebook prices to a cartel of book publishers — publishers who, with Apple's help, collectively agreed on a new pricing model precisely to raise the price of ebooks and thus protect their profit margins and their very existence in the marketplace in the face of the admittedly strong headwinds created by the new technology.

Because we conclude that the district court did not err in deciding that Apple violated § 1 of the Sherman Act, and because we also conclude that the district court’s injunction was lawful and consistent with preventing future anticompetitive harms, we affirm.

BACKGROUND

I. Factual Background

We begin not with Kindles and iPads, but with printed “trade books,” which are “general interest fiction and non-fiction” books intended for a broad readership. Apple, 952 F.Supp.2d at 648 n. 4. In the United States, the six largest publishers of trade books, known in the publishing world as the “Big Six,” are Hachette, HarperCollins, Macmillan, Penguin, Random House, and Simon & Schuster. Together, the Big Six publish many of the biggest names in fiction and non-fiction; during 2010, their titles accounted for over 90% of the New York Times bestsellers in the United States. Id. at 648 n. 5.

For decades, trade book publishers operated under a fairly consistent business model. When a new book was ready for release to the public, the publisher would sell hardcover copies to retailers at a “wholesale” price and recommend resale to consumers at a markup, known as the “list” price. After the hardcover spent enough time on the shelves — often a year — publishers would release a paperback copy at lower “list” and “wholesale” prices. In theory, devoted readers would pay the higher hardcover price to read the book when it first came out, while more casual fans would wait for the paperback.

A. Amazon’s Kindle

On November 19, 2007, Amazon released the Kindle: a portable electronic device that allows consumers to purchase, download, and read ebooks. At the time, there was only one other ereader available in the emerging ebook market, and Amazon’s Kindle quickly gained traction. In 2007, ebook revenue in North America was only $70 million, a tiny amount relative to the approximately $30 billion market for physical trade books. The market was growing, however; in 2008 ebook revenue was roughly $140 million and, by the time Barnes & Noble, Inc. (Barnes & Noble) launched its Nook ereader in November 2009, Amazon was responsible for 90% of all ebook sales. Apple, 952 F.Supp.2d at 648-49.

Amazon followed a “wholesale” business model similar to the one used with print books: publishers recommended a digital list price and received a wholesale price for each ebook that Amazon sold. In exchange, Amazon could sell the publishers’ ebooks on the Kindle and determine the retail price. At least early on, publishers tended to recommend a digital list price that was about 20% lower than the print list price to reflect the fact that, with an ebook, there is no cost for printing, storing, packaging, shipping, or returning the books.

Where Amazon departed from the publishers’ traditional business model was in the sale of new releases and New York Times bestsellers. Rather than selling more expensive versions of these books upon initial release (as publishers encouraged by producing hardcover books before paperback copies), Amazon set the Kindle price at one, stable figure — $9.99. At this price, Amazon was selling “certain” new releases and bestsellers at a price that “roughly matched,” or was slightly lower than, the wholesale price it paid to the publishers. Apple, 952 F.Supp.2d at 649. David Naggar, a Vice President in charge of Amazon’s Kindle content, described this as a “classic loss-leading strategy” designed to encourage consumers to adopt the Kindle by discounting new releases and New York Times bestsellers and selling other ebooks without the discount. J.A. 1485. The district court .also referred to this as a “loss leader[ ]” strategy, Apple, 952 F.Supp.2d at 650, 657, 708, and explained that Amazon “believed [the $9.99] pricing would have long-term benefits for its consumers,” id. at 649. Contrary to the dissent’s portrayal uf the opinion, the district court did not find that Amazon used the $9.99 price point to “assure[ ] its domination” in the ebook market, or that its pricing strategy acted as a “barrier to entry” for other retailers. Dissenting Op. at 6-7. Indeed, in November 2009 — -just a few months before Apple’s launch of the iBookstore- — Barnes & Noble entered the ebook retail market by launching the Nook, Apple, 952 F.Supp.2d at 649 n. 6, and as early as 2007 Google Inc. (“Google”) had been planning to enter the market using a wholesale model, id. at 686.

B. The Publishers’ Reactions

Despite the small number of ebook sales compared to the overall market for trade books, top executives in the Big Six saw Amazon’s $9.99 pricing strategy as a threat to their established way of doing business. Those executives included: Ha-chette and Hachette Livre Chief Executive Officers (“CEOs”) David Young and Ar-naud Nourry; HarperCollins CEO Brian Murray; Macmillan CEO John Sargent; Penguin USA CEO David Shanks; Random House Chief Operating Officer Madeline McIntosh; and Simon & Schuster President and CEO Carolyn Reidy. In the short term, these members of the Big Six thought that Amazon’s lower-priced ebooks would make it more difficult for them to sell hardcover copies of new releases, “which were often priced,” as the district court noted, “at thirty dollars or more,” Apple, 952 F.Supp.2d at 649, as well as New York Times bestsellers. Further down the road, the publishers feared that consumers would become accustomed to the uniform $9.99 price point for these ebooks, permanently driving down the price they could charge for print versions of the books. Moreover, if Amazon became powerful enough, it could demand lower wholesale prices from the Big Six or allow authors to publish directly with Amazon, cutting out the publishers entirely. As Hachette’s Young put it, the idea of the “wretched $9.99 price point becoming a de facto standard” for-ebooks “sickened” him. J.A. 289.

The executives of the Big Six also recognized that their problem was a collective one. Thus, an August 2009 Penguin strategy report (concluded only a few months before Apple commenced its efforts to launch the iBookstore) noted that “Mom-petition for the attention of readers will be most intense from digital companies whose objective may be to [cut out] traditional publishers altogether.... It will not be possible for any individual publisher to mount an effective response, because of both the resources necessary and the risk of retribution, so the industry needs to develop a common strategy.” J.A. 287. Similarly, Reidy from Simon & Schuster opined in September 2009 that the publishers had “no chance of success in getting Amazon to change its pricing practices” unless they acted with a “critical mass,” and expressed the “need to gather more troops and ammunition” before implementing a move against Amazon. J.A. 290 (internal quotation marks omitted).

Conveniently, the Big Six operated in a close-knit industry and had no qualms communicating about the need to act together. As the district court found (based on the Publisher Defendants’ own testimony), “[o]n a fairly regular basis, roughly once a quarter, the CEOs of the [Big Six] held dinners in the private dining rooms of New York restaurants, without counsel or assistants present, in order to discuss the common challenges they faced.” Apple, 952 F.Supp.2d at 651. Because they “did not compete with each other on price,” but over authors and agents, the publishers “felt no hesitation in freely discussing Amazon’s prices with each other and their joint strategies for raising those prices.” Id. Those strategies included eliminating the discounted wholesale price for ebooks and possibly creating an alternative ebook platform.

The most significant attack that the publishers considered and then undertook, however, was to withhold new and bestselling books from Amazon until the hardcover version had spent several months in stores, a practice known as “windowing.” Members of the Big Six both kept one another abreast of their plans to window, and actively pushed others toward the strategy. By December 2009, the Wall Street Journal and New York Times were reporting that four of the Big Six had announced plans to delay ebook releases until after the print release, and the two holdouts — Penguin and Random House— faced pressure from their peers.

Ultimately, however, the publishers viewed even this strategy to save their business model as self-destructive. Employees inside the publishing companies noted that windowing encouraged piracy, punished ebook consumers, and harmed long-term sales. One author wrote to Sargent in December 2009 that the “old model has to change” and that it would be better to “embrace e-books,” publish them at the same time as the hardcovers, “and pray to God they both sell like crazy.” J.A. 325. Sargent agreed, but expressed the hope that ebooks could eventually be sold for between $12.95 and $14.95. “The question is,” he mused, “how to get there?” J.A. 325.

C. Apple’s Entry into the Ebook Market

Apple is one of the world’s most innovative and successful technology companies. Its hardware sells worldwide and supports major software marketplaces like iTunes and the App Store. But in 2009, Apple lacked a dedicated marketplace for ebooks or a hardware device that could offer an outstanding reading experience. The pending release of the iPad, which Apple intended to announce on January 27, 2010, promised to solve that hardware deficiency.

Eddy Cue, Apple’s Senior Vice President of Internet Software and Services and the director of Apple’s digital content stores, saw the opportunity for an ebook marketplace on the iPad. By February 2009, Cue and two colleagues — Kevin Saul and Keith Moerer — had researched the ebook market and concluded that it was poised for rapid expansion in 2010 and beyond. While Amazon had an estimated 90% market share in trade ebooks, Cue believed that Apple could become a powerful player in the market in large part because consumers would be able to do many tasks on the iPad, and would not want to carry a separate Kindle for reading alone. In an email to Apple’s then-CEO, Steve Jobs, he discussed the possibility of Amazon selling ebooks through an application on the iPad, but felt that “it would be very easy for [Apple] to compete with and ... trounce Amazon by opening up our own ebook store” because “[t]he book publishers would do almost anything for [Apple] to get into the ebook business.” J.A. 282.

Jobs approved Cue’s plan for an ebook marketplace — which came to be known as the iBookstore — in November 2009. Although the iPad would go to market with or without the iBookstore, Apple hoped to announce the ebook marketplace at the January 27, 2010 iPad launch to “ensure maximum consumer exposure” and add another “dramatic component” to the event. Apple, 952 F.Supp.2d at 655. This left Cue and his team only two months amidst the holiday season both to create a business model for the iBookstore and to assemble a group of publishers to participate. Cue also had personal reasons to work quickly. He knew that Jobs was seriously ill, and that, by making the iBookstore a success, he could help Jobs achieve a longstanding goal of creating a device that provides a superior reading experience.

Operating under a tight timeframe, Cue, Saul, and Moerer streamlined their efforts by focusing on the Big Six publishers. They began by arming themselves with some important information about the state of affairs within'the publishing industry. In particular, they learned that the publishers feared that Amazon’s pricing model could change their industry, that several publishers had engaged in simultaneous windowing efforts to thwart Amazon, and that the industry as a whole was in a state of turmoil. “Apple understood,” as the district court put it, “that the Publishers wanted to pressure Amazon to raise the $9.99 price point for e-books, that the Publishers were searching for ways to do that, and that they were willing to coordinate their efforts to achieve that goal.” Id. at 656. For its part, as the district court found, Apple was willing to sell ebooks at higher prices, but “had decided that it would not open the iBookstore if it could not make money on the store and compete effectively with Amazon.” Id.

D. Apple’s Negotiations with the Publishers

1. Initial Meetings

Apple held its first meetings with each of the Big Six between December 15 and 16. The meetings quickly confirmed Cue’s suspicions about the industry. As he wrote to Jobs after speaking with three of the publishers, “[c]learly, the biggest issue is new release pricing” and “Amazon is definitely not liked much because of selling below cost for NYT Best Sellers.” J.A. 326-27. Many publishers also emphasized that they were searching for a strategy to regain control over pricing. Apple informed each of the Big Six that it was negotiating with the other major publishers, that it hoped to begin selling ebooks within the next 90 days, and that it was seeking a critical mass of participants in the iBookstore and would launch only if successful in reaching this goal. Apple informed the publishers that it did not believe the iBookstore would succeed unless publishers agreed both not to window books and to sell ebooks at a discount relative to their physical counterparts. Apple noted that ebook prices in the iBookstore needed to be comparable to those on the Kindle, expressing the view, as Reidy recorded, that it could not “tolerate a market where the product is sold significantly more cheaply elsewhere.” Apple, 952 F.Supp.2d at 657 (internal quotation marks omitted). Most importantly for the publishers, however, Cue’s team also expressed Apple’s belief that Amazon’s $9.99 price point was not ingrained in consumers’ minds, and that Apple-could sell new releases and New' York Times bestsellers for somewhere between $12.99 and $14.99. In return, Apple requested that the publishers decrease their wholesale prices so that the company could make a small profit on each sale.

These meetings spurred a flurry of communications reporting on the “[t]errifie news[,]” as Reidy put it in an email to Leslie Moonves, her superior at parent company CBS Corporation (“CBS”), that Apple “was not interested in a low price point for digital books” and didn’t want “Amazon’s $9.95 [sic] to continue.” Apple, 952 F.Supp.2d at 658 (first alteration in original) (internal quotation marks omitted). Significantly, these communications included numerous exchanges between executives at different Big Six publishers who, the district court found, “hashed over their meetings with Apple with one another.” Id. The district court found that the frequent telephone calls among the Publisher Defendants during the period of their negotiations with Apple “represented a departure from the ordinary pattern of calls among them.” Id. at 655 n. 14.

2. The Agency Model

Meanwhile, Cue, Moerer, and Saul returned to Apple’s headquarters to develop a business model for the iBookstore. Although the team was optimistic about the initial meetings, they remained concerned about whether the publishers would reduce wholesale prices on new releases and bestsellers by a large enough margin to allow Apple to offer competitive prices and still make a profit. One strategy that the team considered was to ask publishers for a 25% wholesale discount on all of these titles, so if a physical book sold at $12 wholesale (the going rate for the majority of New York Times bestsellers) Apple could purchase the ebook version for $9 and offer it on the iBookstore at a small markup. But Cue was aware that some publishers had increased Amazon’s digital wholesale prices in 2009 in an unsuccessful effort to convince Amazon to change its pricing. Id. at 650; J.A. 1771. Cue felt it would be difficult to negotiate wholesale prices down far enough “for [Apple] to generally compete profitably with Amazon’s below-cost pricing on the most popular e-books.” J.A. 1772. As Cue saw it, Apple’s most valuable bargaining chip came from the fact that the publishers were desperate “for an alternative to Amazon’s pricing policies and excited about ... the prospect that [Apple’s] entry [into the ebook market] would give them leverage in their negotiations with Amazon.” Apple, 952 F.Supp.2d at 659.

It was at this point that Cue’s team, recognizing its opportunity, abandoned the wholesale business model for a new, agency model. Unlike a wholesale model, in an agency relationship the publisher sets the price that consumers will pay for each ebook. Then, rather than the retailer paying the publisher for each ebook that it sells, the publisher pays the retailer a fixed percentage of each sale. In essence, the retailer receives a commission for distributing the publisher’s ebooks. Under the system Apple devised, publishers would have the freedom to set ebook prices in the iBookstore, and would keep 70% of each sale. The remaining 30% would go to Apple as a commission.

This switch to an agency model obviated Apple’s concerns about negotiating wholesale prices with the Big Six while ensuring that Apple profited on every sale. It did not, however, solve all of the company’s problems. Because the agency model handed the publishers control over pricing, it created the risk that the Big Six would sell ebooks in the iBookstore at far higher prices than Kindle’s $9.99 offering. If the prices were too high, Apple could be left with a brand new marketplace brimming with titles, but devoid of customers.

To solve this pricing problem, Cue’s team initially devised two strategies. First, they realized that they could maintain “realistic prices” by establishing price caps for different types of books. J.A. 359. Of course, these caps would need to be higher than Amazon’s $9.99 price point, or Apple would face the same difficult price negotiations that it sought to avoid by switching away from the wholesale model. But at this point Apple was not content to open its iBookstore offering prices higher than the competition. For as the district court found, if the Publisher Defendants “wanted to end Amazon’s $9.99 pricing,” Apple similarly desired “that there be no price competition at the retail level.” Apple, 952 F.Supp.2d at 647.

Apple next concluded, then, as the district court found, that “[t]o ensure that the iBookstore would be competitive at higher prices, Apple ... needed to eliminate all retail price competition.” Id. at 659. Thus, rather than simply agreeing to price caps above Amazon’s $9.99 price point, Apple created a second requirement: publishers must switch all of their other ebook retailers — including Amazon — to an agency pricing model. The result would be that Apple would not need to compete with Amazon on'price, and publishers would be able to eliminate Amazon’s $9.99 pricing. Or, as Cue would later describe the plan to executives at Simon & Schuster, Macmillan, and Random House, the plan “solve[d] [the] Amazon issue” by allowing the publishers to wrest control over pricing from Amazon. Id. at 661 (internal quotation marks omitted).

On January 4 and 5, Apple sent essentially identical emails to each member of the Big Six to explain its agency model proposal. Each email described the commission split between Apple and the publishers and recommended three price caps: $14.99 for hardcover books with list prices above $35; $12.99 for hardcover books with list prices below $35; and $9.99 for all other trade books. The emails also explained that, “to sell ebooks at realistic prices ... all [other] resellers of new titles need to be in [the] agency model” as well. J.A. 360. Or, as Cue told Reidy, “all publishers” would need to move “all retailers” to an agency model. J.A. 2060.

3. The “Most-Favored-Nation” Clause

Cue’s thoughts on the agency model con- • tinued to evolve after the emails on January 4 and 5. Most significantly, Saul— Cue’s in-house counsel — devised an alternative to explicitly requiring publishers to switch other retailers to agency. This alternative involved the use of a “most-favored nation” clause (“MFN Clause” or “MFN”). In general, an MFN Clause is a contractual provision that requires one party to give the other the best terms that it makes available to any competitor. In the context of Apple’s negotiations, the MFN Clause mandated that, “[i]f, for any particular New Release in hardcover format, the ... Customer Price [in the iBook-store] at any time is or becomes higher than a customer price offered by any other reseller ..., then [the] Publisher shall designate a new, lower Customer Price [in the iBookstore] to meet such lower [customer price].” J.A. 559. Put differently, the MFN would require the publisher to offer any ebook in Apple’s iBookstore for no more than what the same ebook was offered elsewhere, such as from Amazon.

On January 11, Apple sent each of the Big Six a proposed eBook Agency Distribution Agreement (the “Contracts”). As described in the January 4 and 5 emails, these Contracts would split the proceeds from each ebook sale between the publisher and Apple, with the publisher receiving 70%, and would set price caps on ebooks at $14.99, $12.99, and $9.99 depending on the book’s hardcover price. But unlike the initial emails, the Contracts contained MFN Clauses in place of the requirement that publishers move all other retailers to an agency model. Apple then assured each member of the Big Six that it was being offered the same terms as the others.

The Big Six understood the economic incentives that the MFN Clause created. Suppose a new hardcover release sells at a list price of $25, and a wholesale price of $12.50. With Amazon, the publishers had been receiving the wholesale price (or a slightly lower digital wholesale price) for every ebook copy of the volume sold on Kindle, even if Amazon ultimately sold the ebook for less than that wholesale price. Under Apple’s initial agency model — with price caps but no MFN Clause — the publishers already stood to make less money per ebook with Apple. Because Apple capped the ebook price of a $25 hardcover at $12.99 and took 30% of that price, publishers could only expect to make $8.75 per sale. But what the publishers sacrificed in short-term revenue, they hoped to gain in long-term stability by acquiring more control over pricing and, accordingly, the ability to protect their hardcover sales.

The MFN Clause changed the situation by making it imperative, not merely desirable, that the publishers wrest control over pricing from ebook retailers generally. Under the MFN, if Amazon stayed at a wholesale model and continued to sell ebooks at $9.99, the publishers would be forced to sell in the iBookstore, too, at that same $9.99 price point. The result would be the worst of both worlds: lower short-term revenue and no control over pricing. The publishers recognized that, as a practical matter, this meant that the MFN Clause would force them to move Amazon to an agency relationship. As Beidy put it, her company would need to move all its other ebook retailers to agency “unless we wanted to make even less money” in this growing market. Apple, 952 F.Supp.2d at 666 (internal quotation marks omitted). This situation also gave each of the publishers a stake in Apple’s quest to have a critical mass of publishers join the iBook-store because, “[wjhile no one Publisher could effect an industry-wide shift in prices or change the public’s perception of a book’s value, if they moved together they could.” Id. at 665; see also J.A. 1981.

Apple understood this dynamic as well. As the district court found, “Apple did not change its thinking” when it replaced the explicit requirement that the publishers move other retailers to an agency model with the MFN. Indeed, in the following weeks, Apple assiduously worked to make sure that the shift to agency occurred. Apple, 952 F.Supp.2d at 663. But Apple also understood that, as Cue bluntly put it, “any decent MFN forces the model” away from wholesale and to agency. Id. (internal quotation marks omitted). Or as the district court found, “the MFN protected Apple from retail price competition as it punished a Publisher if it failed to impose agency terms on other e-tailers.” Id. at 665.

Thus, the terms of the negotiation between Apple and the publishers became clear: Apple wanted quick and successful entry into the ebook market and to eliminate retail price competition with Amazon. In exchange, it offered the publishers an opportunity “to confront Amazon as one of an organized group ... united in an effort to eradicate the $9.99 price point.” Id. at 664. Both sides needed a critical mass of publishers to achieve their goals. The MFN played a pivotal role in this quid pro quo by “stiffening] the spines of the [publishers] to ensure that they would demand new terms from Amazon,” and protecting Apple from retail price competition. Id. at 665.

4. Final Negotiations

The proposed Contracts sparked intense negotiations as Cue’s team raced to assemble enough publishers to announce the iBookstore by January 27. The publishers’ first volley was to push back on Apple’s price caps, which they recognized would become the “standard across the industry” for pricing. J.A. 571. In a set of meetings between January 13 and 14, the majority of the Big Six expressed a general willingness to adopt an agency model, but refused to do so with the price limits Apple demanded. Cue responded by asking Jobs for permission to create a more lenient price cap system. Under this new regime, New York Times bestsellers could sell for $14.99 if the hardcover was listed above $30, and for $12.99 if listed below that price. As for new releases, a $12.99 cap would apply to hardcovers priced between $25 and $27.50; a $14.99 cap would apply to hardcovers selling for up to $30; and, if the hardcover sold for over $30, publishers could sell the ebook for between $16.99 and $19.99. Jobs responded that he could “live with” the pricing “as long as [the publishers] move Amazon to the agen[ey] model too.” J.A. 499.

Cue proposed this new pricing regime to the Big Six on January 16 and, with only 11 days remaining before the iPad launch, turned up the pressure. In each email conveying the new prices, Cue reminded the publishers that, if they did not agree to the iBookstore by the 27th, other companies, including Amazon and Barnes & Noble, would certainly build their own book store apps for the iPad. Correspondence from within the publishing companies also shows that Cue promoted the proposal as the “best chance for publishers to challenge the 9.99 price point,” and emphasized that Apple would “not move forward with the store [unless] 5 of the 6 [major publishers] signed the agreement.” J.A. 522-23. As Cue said at trial, he attempted to “assure [the publishers] that they weren’t going to be alone, so that [he] would take the fear awa[y] of the Amazon retribution that they were all afraid of.” J.A. 2068 (internal quotation marks omitted). “The Apple team reminded the Publishers,” as the district court found, “that this was a rare opportunity for them to achieve control over pricing.” Apple, 952 F.Supp.2d at 664.

By January 22, two publishers — Simon & Schuster and Hachette — had verbally committed to join the iBookstore, while a third, Penguin, had agreed to Apple’s terms in principle. As for the others, Cue was frustrated that they kept “chickening out” because of the “dramatic business change” that Apple was proposing. J.A. 547. To make matters worse, “[p]ress reports on January 18 and 19 alerted the publishing world and Amazon to the Publishers’ negotiations with Apple,” Apple, 952 F.Supp.2d at 670-71, and Amazon learned from Random House that it was facing “pressure from other publishers ... to move to [the] agency model because Apple had made it clear that unless all of the Big Six participated, they wouldn’t bother with building a bookstore,” J.A. 1520. Representatives from Amazon descended on New York for a set of long-scheduled meetings with the publishers. As the district court found, “[i]n separate conversations on January 20 and over the next few days, the Publisher Defendants all told Amazon that they wanted to change to an agency distribution model with Amazon.” Apple, 952 F.Supp.2d at 672.

Macmillan, however, presented an issue for Apple. The district court found that at a January 20 lunch between John Sargent and Amazon, Sargent “announced that Macmillan was planning to offer Amazon the option to choose either an agency [or wholesale] model.” Id. But at dinner with Cue that night, according to the district court, Cue made sure that Sargent understood the consequences of the MFN, explaining “that Macmillan had no choice but to move Amazon to an agency model if it wanted to sign an agency agreement with Apple.” Id. The next day, Sargent emailed Cue to express his continued reservations about switching Macmillan’s other retailers to an agency relationship.

With the iPad launch fast approaching, Cue enlisted the help of others. Cue had received an email from Simon & Schuster’s Carolyn Reidy, who had already verbally committed to Apple’s terms and whom Cue would later call the “real leader of the book industry,” moments after hearing from Sargent. J.A. 621. Cue then spoke with Reidy for twenty minutes before reaching out to Brian Murray, who, as the district court found, “was fully supportive of the requirement that all e-tailers be moved to an agency model.” Apple, 952 F.Supp.2d at 673 n. 39. After the discussions, Cue asked Sargent to speak with both Reidy and Murray. Sargent complied, and “spoke to both Murray and Reidy by telephone for eight and fifteen minutes, respectively.” Id. at 673. Minutes later, Sargent called the Amazon representative to inform him that Macmillan planned to sign an agreement that “required” the company to conduct business with Amazon through an agency model. Id. By January 23, Macmillan had verbally agreed to join the iBookstore.

Cue followed a similar strategy with Penguin. While Penguin’s CEO David Shanks agreed to Apple’s terms on January 22, he informed Cue that he would join the iBookstore only if four other publishers agreed to participate. By January 25, Apple had signatures from three publishers but Penguin was still noncommittal. Cue called Shanks, and the two spoke for twenty minutes. “Less than an hour [later], Shanks called Reidy to discuss Penguin’s status in its negotiations with Apple.” Id. at 675. Penguin signed the Contract that afternoon.

HarperCollins was the fifth, and final, publisher to agree in principle to Apple’s proposal. Murray, its CEO, “remained unhappy over the size of Apple’s commission and the existence of price caps.” Id. at 673 n. 39. Unable to negotiate successfully with Murray, Cue asked Jobs to contact James Murdoch, the CEO of the publisher’s parent company, and “tell him we have 3 signed so there is no leap of faith here.” Id. at 675 (internal quotation marks omitted). After a series of emails, Jobs summarized Apple’s position to Murdoch:

[W]e simply don’t think the ebook market can be successful with pricing higher than $12.99 or $14.99. Heck, Amazon is selling these books at $9.99, and who knows, maybe they are right and we will fail even at $12.99. But we’re willing to try at the prices we’ve proposed.... As I see it, [HarperCollins] has the following choices: (1) Throw in with [A]pple and see if We can all make a go of this to create a real mainstream ebooks market at $12.99 and $14.99. (2) Keep going with Amazon at $9.99. You will make a bit more money in the short term, but in the medium term Amazon will tell you they will be paying you 70% of $9.99. They have shareholders too. (3) Hold back your books from Amazon. Without a way for customers to buy your ebooks, they will steal them.

Id. at 677. Cue also emailed Murray to inform him that four other publishers had signed their agreements. Murray then called executives at both Hachette and Macmillan before agreeing to Apple’s terms.

As the district court found, during the period in January during which Apple concluded its agreements with the Publisher Defendants, “Apple kept the Publisher Defendants apprised about who was in and how many were on board.” Id. at 673. The Publisher Defendants also kept in close communication. As the district court noted, “[i]n the critical negotiation period, over the three days between January 19 and 21, Murray, Reidy, Shanks, Young, and Sargent called one another 34 times, with 27 calls exchanged on January 21 alone.” Id. at 674.

By the January 27 iPad launch, five of the Big Six — Hachette, HarperCollins, Macmillan, Penguin, and Simon & Schus-ter — had agreed to participate in the iBookstore.’ The lone holdout, Random House, did not join because its executives believed it would fare better under a wholesale pricing model and were unwilling to make a complete switch to agency pricing. Steve Jobs announced the iBook-store as part of his presentation introducing the iPad. When asked after the presentation why someone should purchase an ebook from Apple for $14.99 as opposed to $9.99 with Amazon or Barnes & Noble, Jobs confidently replied, ,“[t]hat won’t be the case ... the price will be the same.... [Publishers will actually withhold their [e]books from Amazon ... because they are not happy with the price.” A day later, Jobs told his’biographer the publishers’ position with Amazon: “[y]ou’re going to sign an agency contract or we’re not going to give you the books.” J.A. 891 (internal quotation marks omitted).

E. Negotiations with Amazon

Jobs’s boast proved to be prophetic. While the Publisher Defendants were signing Apple’s Contracts, they were also informing Amazon that they planned on changing the terms of their agreements with it to an agency model. However, their move against Amazon began in earnest on January 28, the day after the iPad launch. That afternoon, John Sargent flew to Seattle to deliver an ultimatum on behalf of Macmillan: that Amazon would switch its ebook sales agreement with Macmillan to an agency model or suffer a seven-month delay in its receipt of Macmil-Ian’s new releases. Amazon responded by removing the option to purchase Macmillan’s print and ebook titles from its website.

Sargent, as. the district court found, had informed Cue of his intention to confront Amazon before ever leaving for Seattle. Apple, 952 F.Supp.2d at 678. On his return, he emailed Cue to inform him about Amazon’s decision to remove Macmillan ebooks from Kindle, adding a note to say that he wanted to “make sure you are in the loop.” J.A. 640. Sargent also wrote a public letter to Macmillan’s authors and agents, describing the Amazon negotiations. Hachette’s Arnaud Nourry emailed the CEO of Macmillan’s parent company to express his “personal support” for Macmillan’s actions and to “ensure [him] that [he was] not going to find [his] company alone in the battle.” J.A. 643. A Penguin executive wrote to express similar support for Macmillan’s position.

The district court found that while Amazon was “opposed to adoption of the agency model and did not want to cede pricing authority to the Publishers,” it knew that it could not prevail in this position against five of the Big Six. Apple, 952 F.Supp.2d at 671, 680. When Amazon told Macmillan that it would be willing to negotiate agency terms, Sargent sent Cue an email titled “URGENT!!” that read: “Hi Eddy, I am gonna need to figure out our final agency terms of sale tonight. Can you call me please?” J.A. 642. Cue and Sargent spoke that night and, while Cue denied at trial that the conversation concerned Macmillan’s negotiations with Amazon, the district court found that “his denial was not credible.” Apple, 952 F.Supp.2d at 681 n. 52. By February 5, Amazon had agreed to agency terms with Macmillan.

The other publishers who had joined the iBookstore quickly followed Macmillan’s lead. On February 11, Reidy wrote to the head of CBS that Simon & Schuster was beginning agency negotiations with Amazon. She informed him that she was trying to “delay” negotiations because it was “imperative ... that the other publishers with whom Apple has announced deals push for resolution on their term changes” at the same time, “thus not leaving us out there alone.” J.A. 701. Each of the Publisher Defendants then informed Amazon that they were under tight deadlines to negotiate new agency agreements, and kept one another informed about the details of their negotiations. As David Nag-gar, one of Amazon’s negotiators, testified, whenever Amazon “would make a concession on an important deal point,” it would “come back to us from another publisher asking for the same thing or proposing similar language.” J.A. 1491.

Once again, Apple closely monitored the negotiations with Amazon. The Publisher Defendants would inform Cue when they had completed agency agreements, and his team monitored price changes on the Kindle. When Penguin languished behind the others, Cue informed Jobs that Apple was “changing a bunch of Penguin titles to 9.99” in the iBookstore “because they didn’t get their Amazon deal done.” Apple, 952 F.Supp.2d at 682 (internal quotation marks omitted). By March 2010, Macmillan, HarperCollins, Hachette, and Simon & Schuster had completed agency agreements with Amazon. When Penguin completed its deal in June, the company’s executive proudly announced to Cue that “[t]he playing field is now level.” Id. (internal quotation marks omitted).

F. Effect on Ebook Prices

As Apple and the Publisher Defendants expected, the iBookstore price caps quickly became the benchmark for ebook versions of new releases and New York Times bestsellers. In the five months following the launch of the iBookstore, the publishers who joined the marketplace and switched Amazon to an agency model priced 85.7% of new releases on Kindle and 92.1% of new releases on the iBookstore at, or just below, the price caps. Apple, 952 F.Supp.2d at 682. Prices for New York Times bestsellers took a similar leap as publishers began to sell 96.8% of their bestsellers on Kindle and 99.4% of their bestsellers on the iBookstore at, or just below, the Apple price caps. Id. During that same time period, Random House, which had not switched to an agency model, saw virtually no change in the prices for its new releases or New York Times bestsellers.

The Apple price caps also had a ripple effect on the rest of the Publisher Defendants’ catalogues. Recognizing that Apple’s price caps were tied to the price of hardcover books, many of these publishers increased the prices of their newly released hardcover books to shift the ebook version into a higher price category. Id. at 683. Furthermore, because the Publisher Defendants who switched to the agency model expected to make less money per sale than under the wholesale model, they also increased the prices on their ebooks that were not new releases or bestsellers to make up for the expected loss of revenue. Based on data from February 2010 — just before the Publisher Defendants switched Amazon to agency pricing — to February 2011, an expert retained by the Justice Department observed that the weighted average price of the Publisher Defendants’ new releases increased by 24.2%, while bestsellers' increased by 40.4%, and other ebooks increased by 27.5%, for a total weighted average ebook price increase of 23.9%. Indeed, even Apple’s expert agreed, noting that, over a two-year period, the Publisher Defendants increased their average prices for hardcovers, new releases, and other ebooks.

Increasing prices reduced demand for the Publisher Defendants’ ebooks. According to one of Plaintiffs’ experts, the publishers who switched to agency sold 77,307 fewer ebooks over a two-week period after the switch to agency than in a comparable two-week period before the switch, which amounted to selling 12.9% fewer units. Id. at 684. Another expert relied on data from Random House to estimate how many ebooks the Publisher Defendants who switched Amazon to agency would have sold had they stayed with the wholesale model, and concluded that the agency switch and price increases led to 14.5% fewer sales. Id.

Significantly, these changes took place against the backdrop of a rapidly changing ebook market. Amazon introduced the Kindle in November 2007, just over two years before Apple launched the iPad in January 2010. During that short period, Apple estimated that the market grew from $70 million in ebook sales in 2007 to $280 million in 2009, and the company projected those figures to grow significantly in following years. Apple’s expert witnesses argued that overall ebook sales continued to grow in the two years after the creation of the iBoókstore and that the average ebook price fell during those years. But as Plaintiffs’ experts pointed out, the ebook market had been expanding rapidly even before Apple’s entry and average prices had been falling as lower-end publishers entered the market and larger numbers of old books became available in digital form. “Apple’s experts did not present any analysis that attempted to control for the many changes that the e-book market was experiencing during these early years of its growth,” Apple, 952 F.Supp.2d at 685, nor did they estimate how the market would have grown but for Apple’s agreement with the Publisher Defendants to switch to an agency model and raise prices. To the contrary, the undisputed fact that the Publisher Defendants raised prices on their ebooks, which accounted for roughly 50% of the trade ebook market in the first quarter of 2010, necessitated “a finding that the actions taken by Apple and the Publisher Defendants led to an increase in the price of e-books.” Id.

Finally, in response to the dissent’s claim that Apple’s conduct “deconcentrat[ed] ... the e-book retail market” and thus was “pro-competitive,” Dissenting Op. at 351, it is worth noting that the district court’s economic analysis and the parties’ submissions at trial focused entirely on the price and sales figures for trade ebooks. This is because both parties agreed that the relevant market in this case is “the trade e-books market, not the e-reader market or the ‘e-books system’ market.” United States v. Apple, Inc., 889 F.Supp.2d 623, 642 (S.D.N.Y.2012); Apple, 952 F.Supp.2d at 694 n. 60. The district court did not analyze the state of competition between ebook retailers or determine that Amazon’s pricing policy acted, as the dissent accuses, as a “barrier[] to entry” for other potential retailers. Dissenting Op. at 348-49, 351.

II. Procedural History

On April 11, 2012, Plaintiffs filed a pair of civil antitrust actions in the United States District Court for the Southern District of New York. The complaints alleged that Apple and the Publisher Defendants — Hachette, HarperCollins, Macmillan, Penguin, and Simon & Schuster — conspired to raise, fix, and stabilize the retail price for newly released and bestselling trade ebooks in violation of § 1 of the Sherman Act and various state laws. The litigation then proceeded along two.separate trajectories, one for the Publisher Defendants and the other for Apple.

A. Publisher Defendants

Hachette, HarperCollins, and Simon & Schuster agreed to settle with DOJ by signing consent decrees on the same day that the Justice Department filed its complaint. Pursuant to the Tunney Act, 15 U.S.C. § 16 et seq., “at least 60 days prior to the effective date” of a consent judgment, the United States must file a “competitive impact statement,” which includes, inter alia, “the nature and purpose of the proceeding,” “a description of the practices or events giving rise to the alleged violation of the antitrust laws,” and an explanation of the relief obtained by the consent judgment “and the anticipated. effects on competition of such relief.” Id. § 16(b). In compliance with these requirements, DOJ issued a competitive impact statement that outlined the remedies it planned to impose on Hachette, HarperCollins, and Simon & Schuster. Two of those proposed remedies required that, for two years, the three publishers “not restrict, limit, or impede an E-book Retailer’s ability to set, alter, or reduce the Retail Price of any E-book or to offer price discounts or any other form of promotions,” and that they not “enter into any agreement” with retailers that limit such practices. J.A. 17 1126-27.

Alter the 60-day comment period, the Justice Department moved in the district court for a decision that “the entry of the judgment is in the public interest,” 15 U.S.C. § 16(e), and for approval of the consent decree. In defense of the two-year limitations provisions, DOJ explained that the Publisher Defendants had used retail price restrictions to “effectuat[e] the conspiracy” and that two years was sufficient to “allow movement in the marketplace away from collusive conditions” without “altering] the ultimate development of the competitive landscape in the still-evolving e-books industry.” J.A. 1054-55. On September 5, 2012, the district court approved the consent decree and found the two-year ban on retail-price restrictions “wholly appropriate given the Settling Defendants’ alleged abuse of such provisions ..., the Government’s recognition that such terms are not intrinsically unlawful, and the nascent state of competition in the e-books industry.” J.A. 1088.

The remaining Publisher Defendants, Penguin and Macmillan, settled in quick succession. On December 18, 2012, Penguin agreed to a consent decree with essentially the same terms that Hachette, HarperCollins, and Simon & Schuster received. A few months later, in February 2013, Macmillan also agreed to settle. The terms of Macmillan’s consent decree contained slight modifications. Rather than delaying the prohibition on retail discounts until the court approved the decree, DOJ required Macmillan to begin compliance within three days of signing the decree. In exchange, the Justice Department agreed to back-date the beginning of the limitations period to December 18, 2012 and to reduce its length from two years to 23 months, explaining that “[cjonsumers are better served by bringing more immediate retail price competition to the market” and that a “23-month cooling-off period is sufficient” to restore competition. J.A. 1162-63. The district court approved Penguin’s consent decree on May 17, 2013, and Macmillan’s on August 12, 2013.

B. Apple

Unlike the Publisher Defendants, Apple opted to take the case to trial. Fact and expert discovery concluded on March 22, 2013 and, after filing pretrial motions, the parties agreed to a bench trial on Apple’s liability and injunctive relief, to be followed by a separate trial on damages on the state claims if the states prevailed.

On July 10, 2013, after conducting a three-week bench trial, the district court concluded that Apple had violated § 1 of the Sherman Act and various state antitrust laws. In brief, the court found that Apple “orchestrat[ed]” a conspiracy among the Publisher Defendants to “eliminate retail price competition [in the e-book market] in order to raise the retail prices of e-books.” Apple, 952 F.Supp.2d at 697. Because this conspiracy consisted of a group of competitors — the Publisher Defendants — assembled by Apple to increase prices, it constituted a “horizontal price-fixing conspiracy” and was a per se violation of the Sherman Act. Id. at 694. It concluded, moreover, that even if the agreement to raise prices and eliminate retail price competition were analyzed under the rule of reason, it would still constitute an unreasonable restraint of trade in violation of § 1. Id. In the district court’s view, Plaintiffs’ experts persuasively demonstrated that the agreement facilitated an “aeross-the board price increase in e-books sold by the- Publisher Defendants” and a corresponding drop in sales. Id. Apple, on the other hand, failed to show that “the execution of the Agreements,” as opposed to the launch of the iPad and “evolution of digital publishing more generally” (which were independent of the Agreements), “had any pro-competitive effects.” Id.

After the district court issued its liability decision, the parties submitted briefing on injunctive relief. The court conducted a hearing on the issue and, on September 5, 2013, issued a final injunctive order against Apple and entered' final (1) “Prohibited Conduct,” which prevents Apple from enforcing MFNs with ebook publishers, retaliating against publishers for signing agreements with other retailers, or agreeing with any of the Publisher' Defendants to restrict, limit, or impede Apple’s ability to set ebook retail prices; (2) “Required Conduct,” which, among other things, forces Apple to modify its agency agreements with the Publisher Defendants and to treat ebook apps sold in the iTunes store like any other app sold there; (3) “Antitrust Compliance,” which requires Apple to improve its internal system for preventing antitrust violations.; and (4) “External Compliance Monitoring],” which allows the court to appoint an external monitor to ensure Apple’s compliance with the injunctive order.

After the entry of the district court’s injunctive order, Apple, Macmillan, and Simon & Schuster filed this appeal. The parties have not yet conducted a trial to assess the damages stemming from the state antitrust claims.

DISCUSSION

To hold a defendant liable for violating § 1 of the Sherman Act, a district court must find “a combination or some form of concerted action between at least two legally distinct economic entities” that “constituted an unreasonable restraint of trade.” Capital Imaging Assocs. v. Mohawk Valley Med. Assocs., 996 F.2d 537, 542 (2d Cir.1993); see 15 U.S.C. § 1. On appeal, Apple challenges numerous aspects of the district court’s § 1 analysis and also contends that the injunctive order that the district court imposed on the company is unlawful. Macmillan and Simon & Schuster have joined Apple’s challenge to the injunction, arguing that it impermissibly interferes with, their consent decrees and is barred by the doctrine of judicial estop-pel. We conclude that the district court’s liability determination was sound and its injunctive order lawful. We therefore affirm the judgment of the district court.

I. Standard of Review

Following a bench trial, this Court reviews the “district court’s findings of fact for clear error” and its “conclusions of law and mixed questions de novo.” Connors v. Conn. Gen. Life Ins. Co., 272 F.3d 127, 135 (2d Cir.2001); see Fed.R.Civ.P. 52(a). The district court’s evidentiary rulings and its fashioning of equitable relief are reviewed for abuse of discretion. See Zerega Ave. Realty Corp. v. Hornbeck Offshore Transp., LLC, 571 F.3d 206, 212-13 (2d Cir.2009) (evidentiary rulings); Abrahamson v. Bd. of Educ. Of the Wappingers Falls Cent. Sch. Dist., 374 F.3d 66, 76 (2d Cir.2004) (equitable relief).

II. Apple’s Liability Under § 1

This appeal requires us to address the important distinction between “horizontal” agreements to set prices, which involve coordination “between competitors at the same level of [a] market structure,” and “vertical” agreements on pricing, which are created between parties “at different levels of [a] market structure.” Anderson News, L.L.C. v. Am. Media, Inc., 680 F.3d 162, 182 (2d Cir.2012) (internal quotation marks omitted). Under § 1. of the Sherman Act, the former are, with limited exceptions, per se unlawful, while the latter are unlawful only if an assessment of market effects, known as a rule-of-reason analysis, reveals that they unreasonably restrain trade. See Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877, 893, 127 S.Ct. 2705, 168 L.Ed.2d 623 (2007).

Although this distinction is sharp in theory, determining the orientation of an agreement can be difficult as a matter of fact and turns on more than simply identifying whether the pa