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U.S. Supreme Court takes up Taser maker’s battle with FTC -Breaking

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© Reuters. FILEPHOTO: An overview of the U.S. Supreme Court at Washington, U.S.A. on May 22, 2021. REUTERS/Erin Scott/File Photo

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By Andrew Chung

(Reuters) – Monday’s hearing by Axon Enterprise (NASDAQ) Inc, the U.S. Supreme Court heard its appeal to reinstate the challenge to the Constitution of the Federal Trade Commission structure. This was in response to an antitrust case brought against Taser maker.

After a lower court dismissed the case, the justices heard an appeal from the company. They found that Axon could not contest the FTC structure in federal court. Axon had to first endure the enforcement action by the agency in an administrative proceeding.

FTC, an independent federal government agency, targets anticompetitive or fraudulent business practices.

Scottsdale-based Axon claims that Axon is biased against companies and individuals targeted by it, and that its internal enforcement actions have preordained results.

Axon claimed the agency functions as a prosecutor, judge, or jury against the Fifth Amendment of the U.S. Constitution. This is in direct violation of equal protection and due process guarantees. Axon challenged FTC’s authority to appoint FTC administrative judges. He claimed that their job protections illegally placed them out of the President’s ability to oversee executive branch officers as per Article II.

The FTC last year issued https://www.reuters.com/article/us-axon-enterprise-ftc-idINKBN1Z2281 an administrative complaint against Axon challenging its 2018 acquisition of Vievu, a rival body-camera provider, for $13 million, saying the deal allowed the company to impose substantial price increases. Axon argued that the transaction was valid and sued federal courts to stop an FTC proceeding.

A federal judge ruled that the company could not bypass the FTC’s administrative proceedings and dismissed Axon’s case. A federal judge determined that FTC Act (which established it in 1914) requires companies to make objections to the agency. They can also appeal adverse results to the Federal Court of Appeals.

San Francisco-based 9th U.S. Circuit Court of Appeals upheld https://www.reuters.com/business/legal/axon-loses-appeals-court-fight-with-ftc-over-vievu-acquisition-2021-01-28 that decision last year, prompting Axon to appeal to the Supreme Court.

Axon was supported by U.S. Chamber of Commerce and business organizations. Axon asked the justices for a reopening of courthouse doors in its suit challenging legality of FTC judges, “and of FTC itself.”

President Joe Biden’s administration, defending the FTC, urged the justices to reject https://www.reuters.com/legal/litigation/doj-spurns-taser-makers-ftc-forum-challenge-scotus-appeal-2021-09-23 the appeal.

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