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Justia Weekly Opinion Summaries

Antitrust & Trade Regulation
January 29, 2021

Table of Contents

Axon Enterprise, Inc. v. Federal Trade Commission

Antitrust & Trade Regulation, Government & Administrative Law

US Court of Appeals for the Ninth Circuit

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Antitrust & Trade Regulation Opinions

Axon Enterprise, Inc. v. Federal Trade Commission

Court: US Court of Appeals for the Ninth Circuit

Docket: 20-15662

Opinion Date: January 28, 2021

Judge: Kenneth K. Lee

Areas of Law: Antitrust & Trade Regulation, Government & Administrative Law

The Ninth Circuit affirmed the district court's dismissal, based on lack of subject matter jurisdiction, of Axon's action alleging that the FTC's administrative enforcement process violated the company's constitutional rights. In this case, the FTC investigated and filed an administrative complaint challenging Axon's acquisition of a competitor, demanding that Axon spin-off its newly acquired company and provide it with Axon's own intellectual property. The district court dismissed the complaint after determining that the FTC's statutory scheme requires Axon to raise its constitutional challenge first in the administrative proceeding. The panel held that the Supreme Court's Thunder Basin trilogy of cases mandates dismissal. The panel explained that the structure of the Federal Trade Commission Act suggests that Congress impliedly barred jurisdiction in district court and required parties to move forward first in the agency proceeding. Because the FTC statutory scheme ultimately allows Axon to present its constitutional challenges to a federal court of appeals after the administrative proceeding, the panel concluded that Axon has not suffered any cognizable harm. Therefore, the panel joined every other circuit that has addressed a similar issue in ruling that Congress impliedly stripped the district court of jurisdiction.

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