The Immunity of Local Governments and Their Officials from Antitrust Claims After City of Boulder

On January 13, 1982, the United States Supreme Court rendered an opinion against the City of Boulder, Colorado, which expanded the potential liability of local governmental entities and their officials to claims under the federal antitrust laws. The Supreme Court essentially held that a municipality cannot obtain immunity from antitrust claims unless it satisfies a stringent test. Due to the broad language of the opinion, virtually every activity in which a local governmental entity engages, including the traditional activities of zoning, licensing, franchising, purchasing and operating public utilities, has become subject to antitrust challenges that may require a trial on the merits.