north carolina state board dental examiners federal trade commission argued october decided february north carolina dental practice act act provides north carolina state board dental examiners board agency state regulation practice dentistry board principal duty create administer enforce licensing system dentists six eight members must licensed practicing dentists act specify teeth whitening practice dentistry nonetheless dentists complained board nondentists charging lower prices services dentists board issued least official letters nondentist teeth whitening service providers product manufacturers often warning unlicensed practice dentistry crime related board actions led nondentists cease offering teeth whitening services north carolina federal trade commission ftc filed administrative complaint alleging board concerted action exclude nondentists market teeth whitening services north carolina constituted anticompetitive unfair method competition federal trade commission act administrative law judge alj denied board motion dismiss ground immunity ftc sustained ruling reasoning even board acted pursuant clearly articulated state policy displace competition board must actively supervised state claim immunity hearing merits alj determined board unreasonably restrained trade violation antitrust law ftc sustained alj fourth circuit affirmed ftc respects held controlling number board decisionmakers active market participants occupation board regulates board invoke antitrust immunity subject active supervision state requirement met pp federal antitrust law central safeguard nation free market structures however requiring conform mandates sherman act expense values state may deem fundamental impose impermissible burden power regulate therefore beginning parker brown interpreted antitrust laws confer immunity anticompetitive conduct acting sovereign capacity pp board actions cloaked parker immunity nonsovereign actor controlled active market participants board enjoys parker immunity challenged restraint clearly articulated affirmatively expressed state policy policy actively supervised state ftc phoebe putney health system quoting california retail liquor dealers assn midcal aluminum board receive active supervision anticompetitive conduct pp entity may invoke parker immunity unless actions exercise state sovereign power see columbia omni outdoor advertising thus state delegates control market nonsovereign actor sherman act confers immunity state accepts political accountability anticompetitive conduct permits controls limits immunity essential state seeks delegate regulatory power active market participants dual allegiances always apparent actor prohibitions anticompetitive active market participants axiom federal antitrust policy accordingly parker immunity requires anticompetitive conduct nonsovereign actors especially authorized state regulate profession result procedures suffice make state midcal test provides proper analytical framework resolve ultimate question whether anticompetitive policy indeed policy state first requirement clear articulation rarely achieve goal entities purporting act state authority might diverge state considered definition public good engage private second midcal requirement active supervision seeks avoid harm requiring state review approve interstitial policies made entity claiming immunity pp instances actor excused midcal active supervision requirement municipalities electorally accountable general regulatory powers private agenda subject exclusively clear articulation requirement see hallie eau claire hallie excused municipalities midcal supervision rule reasons however confirms rule applicability actors controlled active market participants light omni holding otherwise immune entity lose immunity based ad hoc ex post questioning motives making particular decisions necessary ensure conditions granting immunity met first place see ftc ticor title ins phoebe putney supra clear lesson precedent midcal active supervision test essential prerequisite parker immunity nonsovereign entity public private controlled active market participants pp board argument entities designated agencies exempt midcal second requirement reconciled repeated conclusion need supervision turns formal designation given regulators risk active market participants pursue private interests restraining trade state agencies controlled active market participants pose risk midcal supervision requirement created address see goldfarb virginia state bar conclusion question good faith state officers rather assessment structural risk market participants confusing interests state policy goals hallie stated likely active state supervision also required agencies entity like prototypical state agencies specialized boards dominated active market participants latter similar private trade associations vested regulatory authority must satisfy midcal active supervision standard similarities agencies controlled active market participants associations eliminated simply former given formal designation state vested measure government power required follow procedural rules see hallie supra state empowers group active market participants decide participate market terms need supervision manifest thus holds today state board controlling number decisionmakers active market participants occupation board regulates must satisfy midcal active supervision requirement order invoke antitrust immunity pp state argues allowing ftc order stand discourage dedicated citizens serving state agencies regulate occupation holding inconsistent idea pursue calling must embrace ethical standards derive duty separate dictates state case offer occasion address question whether agency officials including board members may circumstances enjoy immunity damages liability course may provide defense indemnification agency members event litigation also ensure parker immunity available adopting clear policies displace competition providing active supervision arguments wisdom applying antitrust laws professional regulation absent compliance prerequisites invoking parker immunity must rejected see patrick burget particularly light risks licensing boards dominated market participants may pose free market pp board contend anticompetitive conduct actively supervised state receive parker immunity basis act delegates control practice dentistry board says nothing teeth whitening acting expel dentists competitors market board relied letters threatening criminal liability instead powers disposal invoked oversight politically accountable official whether board exceeded powers north carolina law evidence decision state initiate concur board actions nondentists specific supervisory systems reviewed suffices note inquiry regarding active supervision flexible question whether state review mechanisms provide realistic assurance nonsovereign actor anticompetitive conduct promotes state policy rather merely party individual interests patrick identified constant requirements active supervision supervisor must review substance anticompetitive decision see supervisor must power veto modify particular decisions ensure accord state policy see ibid mere potential state supervision adequate substitute decision state ticor supra state supervisor may active market participant general however adequacy supervision otherwise depend circumstances case pp affirmed kennedy delivered opinion roberts ginsburg breyer sotomayor kagan joined alito filed dissenting opinion scalia thomas joined opinion notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press north carolina state board dental examiners petitioner federal trade commission writ certiorari appeals fourth circuit february justice kennedy delivered opinion case arises antitrust challenge actions state regulatory board majority board members engaged active practice profession regulates question whether board actions protected sherman act regulation doctrine antitrust immunity defined applied decisions beginning parker brown dental practice act act north carolina declared practice dentistry matter public concern requiring regulation stat ann act north carolina state board dental examiners board agency state regulation practice dentistry board principal duty create administer enforce licensing system dentists see perform function broad authority licensees see board authority respect unlicensed persons however restricted like resident citizen board may file suit perpetually enjoin person unlawfully practicing dentistry act provides six board eight members must licensed dentists engaged active practice dentistry elected licensed dentists north carolina cast ballots elections conducted board ibid seventh member must licensed practicing dental hygienist elected licensed hygienists ibid final member referred act consumer appointed governor ibid members serve terms person may serve two consecutive terms ibid act create mechanism removal elected member board public official see ibid board members swear oath office board must comply state administrative procedure act et public records act et law et seq board may promulgate rules regulations governing practice dentistry within state provided mandates inconsistent act approved north carolina rules review commission whose members appointed state legislature see dentists north carolina started whitening teeth many including board members period issue case earned substantial fees service nondentists arrived scene charged lower prices services dentists dentists soon began complain board new competitors complaints warned possible harm consumers expressed principal concern low prices charged nondentists responding filings board opened investigation nondentist teeth whitening dentist member placed charge inquiry neither board hygienist member consumer member participated undertaking board chief operations officer remarked board going forth battle nondentists app pet cert board concern result formal rule regulation reviewable independent rules review commission even though act terms specify teeth whitening practice dentistry starting board issued least letters official letterhead nondentist teeth whitening service providers product manufacturers many letters directed recipient cease activity constituting practice dentistry warned unlicensed practice dentistry crime strongly implied expressly stated teeth whitening constitutes practice dentistry app early board persuaded north carolina board cosmetic art examiners warn cosmetologists providing teeth whitening services later year board sent letters mall operators stating kiosk teeth whiteners violating dental practice act advising malls consider expelling violators premises actions intended result nondentists ceased offering teeth whitening services north carolina federal trade commission ftc filed administrative complaint charging board violating federal trade commission act stat amended ftc alleged board concerted action exclude nondentists market teeth whitening services north carolina constituted anticompetitive unfair method competition board moved dismiss alleging immunity administrative law judge alj denied motion appeal ftc sustained alj ruling reasoned even assuming board acted pursuant clearly articulated state policy displace competition board hybrid must actively supervised state claim immunity app pet cert ftc concluded board make showing following proceedings relevant alj conducted hearing merits determined board unreasonably restrained trade violation antitrust law appeal ftc sustained alj ftc rejected board public safety justification noting inter alia wealth evidence suggesting provided teeth whitening safe cosmetic procedure ftc ordered board stop sending letters communications stated nondentists may offer teeth whitening services products ordered board issue notices earlier recipients board orders advising board proper sphere authority saying among options notice recipients right seek declaratory rulings state petition review appeals fourth circuit affirmed ftc respects granted certiorari ii federal antitrust law central safeguard nation free market structures regard important preservation economic freedom system bill rights protection fundamental personal freedoms topco associates antitrust laws declare considered decisive prohibition federal government cartels price fixing combinations practices undermine free market sherman act stat amended et serves promote robust competition turn empowers provides citizens opportunities pursue public welfare see ftc ticor title ins however acting respective realm need adhere contexts model unfettered competition regulate economies many ways inconsistent antitrust laws spheres impose restrictions occupations confer exclusive shared rights dominate market otherwise limit competition achieve public objectives every duly enacted state law policy required conform mandates sherman act thus promoting competition expense values state may deem fundamental federal antitrust law impose impermissible burden power regulate see exxon governor maryland see also easterbrook antitrust economics federalism law econ reasons parker brown interpreted antitrust laws confer immunity anticompetitive conduct acting sovereign capacity see ruling recognized congress purpose respect federal balance embody sherman act federalism principle possess significant measure sovereignty constitution community communications boulder since reaffirmed importance parker central holding see ticor supra hoover ronwin lafayette louisiana power light iii case board argues members invested north carolina power state result board actions cloaked parker immunity argument fails however nonsovereign actor controlled active market participants board enjoys parker immunity satisfies two requirements first challenged restraint one clearly articulated affirmatively expressed state policy second policy actively supervised state ftc phoebe putney health system slip quoting california retail liquor dealers assn midcal aluminum parties assumed clear articulation requirement satisfied north carolina prohibits unauthorized practice dentistry however act silent whether broad prohibition covers teeth whitening board receive active state interpreted act teeth whitening enforced policy issuing letters nondentist teeth whiteners although immunity exists avoid conflicts state sovereignty nation commitment policy robust competition parker immunity unbounded iven fundamental national values free enterprise economic competition embodied federal antitrust laws action immunity disfavored much repeals implication phoebe putney supra slip quoting ticor supra entity may invoke parker immunity unless actions question exercise state sovereign power see columbia omni outdoor advertising state legislation decision state acting legislatively rather judicially satisfy standard ipso facto exempt operation antitrust laws undoubted exercise state sovereign authority hoover supra sherman act confers immunity anticompetitive policies respect federalism always confer immunity state delegates control market actor see parker supra state give immunity violate sherman act authorizing violate declaring action lawful purposes parker nonsovereign actor one whose conduct automatically qualify sovereign state see hoover supra state agencies simply governmental character sovereign actors purposes immunity see goldfarb virginia state bar fact state bar state agency limited purposes create antitrust shield allows foster anticompetitive practices benefit members immunity state agencies therefore requires mere facade state involvement necessary light parker rationale ensure accept political accountability anticompetitive conduct permit control see ticor limits immunity essential state seeks delegate regulatory power active market participants established ethical standards may blend private anticompetitive motives way difficult even market participants discern dual allegiances always apparent actor consequence active market participants allowed regulate markets free antitrust see midcal supra national policy favor competition thwarted casting gauzy cloak state involvement essentially private arrangement indeed prohibitions anticompetitive active market participants axiom federal antitrust policy see allied tube conduit indian head hoover supra stevens dissenting risk private regulation market entry prices output may designed confer profits members industry expense consuming public central concern antitrust jurisprudence see also elhauge scope antitrust process harv rev follows parker supremacy clause greater power attain end include lesser power negate congressional judgment embodied sherman act unsupervised delegations active market participants see garland antitrust state action economic efficiency political process yale parker immunity requires anticompetitive conduct nonsovereign actors especially authorized state regulate profession result procedures suffice make state see goldfarb supra see also areeda hovencamp antitrust law ed areeda hovencamp question whether challenged conduct efficient wise see ticor supra rather whether anticompetitive conduct engaged nonsovereign actors deemed state action thus shielded antitrust laws patrick burget answer question applies test set forth california retail liquor dealers assn midcal aluminum case arising california delegation authority wine merchants midcal state law regulatory scheme basis antitrust immunity unless first state articulated clear policy allow anticompetitive conduct second state provides active supervision anticompetitive conduct ticor supra citing midcal supra midcal clear articulation requirement satisfied displacement competition inherent logical ordinary result exercise authority delegated state legislature scenario state must foreseen implicitly endorsed anticompetitive effects consistent policy goals phoebe putney slip active supervision requirement demands inter alia state officials exercise power review particular anticompetitive acts private parties disapprove fail accord state policy patrick supra two requirements set forth midcal provide proper analytical framework resolve ultimate question whether anticompetitive policy indeed policy state first requirement clear articulation rarely achieve goal policy may satisfy test yet still defined high level generality leave open critical questions extent market regulated see ticor supra entities purporting act state authority might diverge state considered definition public good resulting asymmetry state policy implementation invite private second midcal requirement active supervision seeks avoid harm requiring state review approve interstitial policies made entity claiming immunity midcal supervision rule stems recognition private party engaging anticompetitive activity real danger acting interests rather governmental interests state patrick supra concern private incentives active market participants animates midcal supervision mandate demands realistic assurance private party anticompetitive conduct promotes state policy rather merely party individual interests patrick supra determining whether anticompetitive policies conduct indeed action state sovereign capacity instances actor excused midcal active supervision requirement hallie eau claire held municipalities subject exclusively midcal requirement rule observed consistent objective ensuring policy issue one enacted state hallie explained actor municipality little danger involved private arrangement real danger seek purely parochial public interests expense overriding state goals hallie observed municipalities electorally accountable lack kind private incentives characteristic active participants market see critically municipality hallie exercised wide range governmental powers across different economic spheres substantially reducing risk pursue private interests regulating single field see ibid hallie excused municipalities midcal supervision rule reasons confirms rule applicability actors controlled active market participants ordinarily none features justifying narrow exception hallie identified see following goldfarb midcal hallie clarified conditions parker immunity attaches conduct nonsovereign actor columbia omni outdoor advertising addressed whether otherwise immune entity lose immunity conspiring private parties omni aspiring billboard merchant argued city columbia south carolina violated sherman act forfeited parker immunity anticompetitively conspiring established local company passing ordinance restricting new billboard construction disagreed holding conspiracy exception parker omni supra omni like cases recognized importance drawing line relevant purposes sherman act parker prohibiting restriction competition private gain permitting restriction competition public interest context municipal actor hallie exercised substantial governmental powers omni rejected conspiracy exception corruption vague unworkable since virtually regulation benefits segments society harms others may sense seen omni also rejected subjective tests corruption force deconstruction governmental process probing official consistently sought avoid ibid thus whereas cases preceding addressed preconditions parker immunity engaged objective ex ante inquiry nonsovereign actors structure incentives omni made clear recipients immunity lose basis ad hoc ex post questioning motives making particular decisions omni holding makes necessary ensure conditions granting immunity met first place two immunity cases decided omni reinforce point ticor affirmed midcal limits delegation must ensure ctual state involvement deference private arrangements general auspices state law precondition immunity federal law phoebe putney observed midcal active supervision requirement particular essential condition immunity nonsovereign actor incentive pursue guise implementing state policies slip quoting hallie supra lesson clear midcal active supervision test essential prerequisite parker immunity nonsovereign entity public private controlled active market participants board argues entities designated agencies exempt midcal second requirement premise however reconciled repeated conclusion need supervision turns formal designation given regulators risk active market participants pursue private interests restraining trade state agencies controlled active market participants possess singularly strong private interests pose risk midcal supervision requirement created address see areeda hovencamp conclusion question good faith state officers rather assessment structural risk market participants confusing interests state policy goals see patrick applied reasoning state agency goldfarb denied immunity state agency virginia state bar controlled market participants lawyers agency joined essentially private anticompetitive activity benefit members emphasis bar private interests explains goldfarb though predates midcal considered lack supervision virginia principal reason denying immunity see see also hoover emphasizing lack active supervision goldfarb bates state bar granting arizona bar immunity partly rules subject pointed policymaker hallie stated likely active state supervision also required agencies entity later case omni electorally accountable municipality general regulatory powers private agenda respects municipality like prototypical state agencies specialized boards dominated active market participants important regards agencies controlled market participants similar private trade associations vested regulatory authority agencies hallie considered observed three years hallie doubt members associations often economic incentives restrain competition product standards set associations serious potential anticompetitive harm allied tube reason associations must satisfy midcal active supervision standard see midcal similarities agencies controlled active market participants private trade associations eliminated simply former given formal designation state vested measure government power required follow procedural rules see hallie supra rejecting purely formalistic analysis parker immunity derive nomenclature alone state empowers group active market participants decide participate market terms need supervision manifest see areeda hovencamp holds today state board controlling number decisionmakers active market participants occupation board regulates must satisfy midcal active supervision requirement order invoke antitrust immunity state argues allowing ftc order stand discourage dedicated citizens serving state agencies regulate occupation reasons noted need cause concern sovereign interest structuring governments see gregory ashcroft may conclude substantial benefits staffing agencies experts complex technical subjects see southern motor carriers rate conference moreover long tradition citizens esteemed professional colleagues devoting time energy talent enhancing dignity calling adherence idea pursue calling must embrace ethical standards derive duty separate dictates state reaches back least hippocratic oath see generally miles hippocratic oath ethics medicine strong tradition professional particularly respect development ethical rules see generally rotunda dzienkowski legal ethics lawyer deskbook professional responsibility baker bioethics history american medical ethics colonial period bioethics revolution dentists exception american dental association example exercise privilege obligation call ed upon dentists follow high ethical standards including honesty compassion kindness integrity fairness charity american dental association principles ethics code professional conduct state laws institutions sustained tradition draw upon expertise commitment professionals today holding inconsistent idea board argues however potential money damages discourage members regulated occupations participating state government cf filarsky delia slip warning context civil rights suits talented candidates decline public engagements receive immunity enjoyed public employee counterparts case present claim money damages offer occasion address question whether agency officials including board members may circumstances enjoy immunity damages liability see goldfarb see also brief respondent course may provide defense indemnification agency members event litigation furthermore ensure parker immunity available agencies adopting clear policies displace competition agencies controlled active market participants interpret enforce policies may provide active supervision precedent confirms principle rejected argument unwise apply antitrust laws professional regulation absent compliance prerequisites invoking parker immunity respondents contend effective peer review essential provision quality medical care threat antitrust liability prevent physicians participating openly actively proceedings argument however essentially challenges wisdom applying antitrust laws sphere medical care properly directed legislative branch extent congress declined exempt medical peer review reach antitrust laws peer review immune antitrust scrutiny state effectively made conduct patrick omitted reasoning patrick burget applies case full force particularly light risks licensing boards dominated market participants may pose free market see generally edlin haw cartels another name licensed occupations face antitrust scrutiny rev board contend anticompetitive conduct actively supervised state receive parker immunity basis statute north carolina delegates control practice dentistry board act however says nothing teeth whitening practice exist passed receiving complaints dentists nondentists cheaper services board dentist members offered whitening services acted expel dentists competitors market board relied upon letters threatening criminal liability rather powers disposal invoke oversight politically accountable official active supervision state north carolina officials may well unaware board decided teeth whitening constitutes practice dentistry sought prohibit competed dentists participating teeth whitening market whether board exceeded powers north carolina law cf omni evidence decision state initiate concur board actions nondentists iv board claim state exercised active indeed supervision conduct regarding nondentist teeth whiteners result specific supervisory systems reviewed suffices note inquiry regarding active supervision flexible active supervision need entail involvement agency operations micromanagement every decision rather question whether state review mechanisms provide realistic assurance nonsovereign actor anticompetitive conduct promotes state policy rather merely party individual interests patrick supra see also ticor identified constant requirements active supervision supervisor must review substance anticompetitive decision merely procedures followed produce see patrick supervisor must power veto modify particular decisions ensure accord state policy see ibid mere potential state supervision adequate substitute decision state ticor supra state supervisor may active market participant general however adequacy supervision otherwise depend circumstances case sherman act protects competition also respecting federalism authorize abandon markets unsupervised control active market participants whether trade associations hybrid agencies state wants rely active market participants regulators must provide active supervision immunity parker invoked judgment appeals fourth circuit affirmed ordered alito dissenting north carolina state board dental examiners petitioner federal trade commission writ certiorari appeals fourth circuit february justice alito justice scalia justice thomas join dissenting decision case based serious misunderstanding doctrine antitrust immunity recognized years ago parker brown parker held sherman act prevent continuing practice enacting measures licensing requirements designed protect public health welfare case us involves precisely type state regulation north carolina laws governing practice dentistry administered north carolina board dental examiners board today however takes unprecedented step holding parker apply north board board structured way merits seal approval made practicing dentists financial incentive use licensing laws financial interests state dentists nothing new structure north carolina board first created medical dental boards well sherman act enacted began staffthem anything new suspicion north carolina board attempting prevent persons dentists performing procedures serving interests dentists public professional occupational licensing requirements often used parker immunity indeed state program involved case unquestionably designed benefit regulated entities california raisin growers question us whether programs serve public interest question instead whether case controlled parker answer question clear parker sherman act federal trade commission act see ftc ticor title ins apply state agencies north carolina board dental examiners state agency end matter straying simple path distorted parker headed morass determining whether state agency structured way militates regulatory capture easy task reason fear today decision spawn confusion veered course therefore go along order understand nature parker immunity helpful recall constitutional landscape sherman act enacted time congress understanding scope federal state power different understanding today understood possess exclusive authority regulate purely internal affairs leisy hardin exercising police power area long enacted measures price controls licensing requirements effect restraining sherman act enacted pursuant congress power regulate interstate commerce passing act congress wanted exercise power utmost extent underwriters understanding commerce power far limited today see kidd pearson result act pose threat traditional state regulatory activity parker decided however situation changed dramatically held commerce power permitted congress regulate even local activity exerts substantial economic effect interstate commerce wickard filburn meant congress regulate many matters thought fall exclusively within jurisdiction new interpretation commerce power brought expansion reach sherman act see hospitalbuilding trustees rex hospital ecisions permitted reach sherman act expand along expanding notions congressional power expanded reach sherman act raised important question sherman act expressly exempt scope mean act applies potentially outlaws many traditional state regulatory measures confronted question parker parker raisin producer challenged california agricultural prorate act agricultural price support program california act authorized creation agricultural prorate advisory commission commission establish marketing plans certain agricultural commodities within state raisins among regulated commodities commission established marketing program governed many aspects raisin sales including quality quantity raisins sold timing sales price raisins sold parker assumed program violated sherman act organized made effective solely virtue contract combination conspiracy private persons also assumed congress prohibited state creating program like california chosen nevertheless concluded california program violate sherman act act circumscribe state regulatory power holding parker based either language sherman act anything legislative history affirmatively showing act meant apply instead reasoned dual system government constitution sovereign save may constitutionally subtract authority unexpressed purpose nullify state control officers agents lightly attributed congress congress enacted sherman act truly radical almost certainly futile step attempt prevent exercising traditional regulatory authority parker refused assume act meant effect basis parker doctrine understood error case plain regulation practice medicine dentistry regarded falling squarely within sovereign police power time many established medical dental boards often staffed doctors given boards authority confer revoke quintessential police power legislation although state laws often challenged era doctrine substantive due process licensing medical professionals easily survived assaults one year enactment sherman act dent west rejected challenge state law requiring physicians obtain certificate state board health attesting qualifications hawker new york reiterated lawspecifying qualifications practice medicine clearly proper exercise police power thus north carolina statutes establishing specifying powers state board dental examiners represent precisely kind state regulation parker exemption meant immunize ii noted question case whether north carolina board dental examiners really state agency answer question clearly yes north carolina legislature determined practice dentistry affect public health safety welfare north carolina citizens therefore profession subject regulation control public interest order ensure qualified persons permitted practice dentistry state stat ann end legislature created north carolina state board dental examiners agency state regulation practice dentistry th state legislature specified membership board defined practice dentistry set standards licensing practitioners legislature also set standards board initiate disciplinary proceedings licensees engage certain improper acts legislature empowered board maintain action name state north carolina perpetually enjoin person unlawfully practicing dentistry authorized board conduct investigations hire legalcounsel legislature made notice statement charges licensee public record state law legislature empowered board enact rules regulations governing practice dentistry within state consistent relevant statutes required rules included board annual report board must file north carolina secretary state state attorney general legislature joint regulatory reform committee board fails file required report state law demands automatically suspended ibid regulatory regime demonstrates north board dental examiners unmistakably state agency created state legislature serve prescribed regulatory purpose using state power cooperation arms state government board private nonsovereign entity state north carolina attempted immunize federal antitrust scrutiny parker made clear state may immunity violate sherman act authorizing violate declaring action lawful ante quoting parker parker disapproved attempt cited northern securities show mind case held state act chartering corporation shield corporation monopolizing activities federal antitrust law nothing similar involved north carolina authorize private entity enter anticompetitive arrangement rather north carolina created state agency gave agency power regulate particular subject affecting public health andsafety nothing parker supports type inquiry prescribes crafts test state agencies controlled active market participants ante must demonstrate active state supervision order immune federal antitrust law thus treats state agencies like private entities parker examine structure california program determine captured private interests done case certainly come differently california conditioned regulatory measures participation approval market actors relevant industry establishing prorate marketing plan california law first required petition least producers particular commodity parker commission agreed marketing plan warranted commission select program committee among nominees chosen qualified producers ibid emphasis added committee formulate proration marketing program commission modify approve even commission approval program became law automatically gained approval percent relevant producers representing least percent acreage regulated crop scheme gave decisive power market participants despite aspects california program parker held california acting sovereign adopt ed enforc ed prorate program reasoning irreconcilable today iii goes astray forgets origin theparker doctrine misdirected subsequent cases extended doctrine certain circumstances private entities requires north carolina board satisfy test set california retail liquor dealers assn midcal aluminum party claiming parker immunity case state agency private trade association entity entitled parker immunity midcal held anticompetitive conduct issue supervised state requirements needed state authorizes private parties engage anticompetitive conduct serve identify situations conduct private parties regarded conduct state conduct question conduct state agency inquiry required case falls latter category therefore midcal inapposite north carolina board private trade association state agency created empowered state regulate industry affecting public health exist state created purposes parker membership irrelevant matters part government sovereign state north carolina decision hallie eau claire involved sherman act claims state agency similarly inapplicable hallie plaintiff argued midcal test applied disagreed acknowledged municipalities sovereign recognizing municipality arm state held municipality required satisfy first prong midcal test requiring clearly articulated state policy municipalitiesare sovereign critical analysis hallie thus decision application case like one involving state agency however disregards north carolina board status state agency treats board less favorably municipality puzzling sovereign northern ins chatham county california sovereignty provided foundation decision parker supra municipalities sovereign jinks richland county reason federal law often treats municipalities differently compare michigan dept state police either state officials acting official capacities monell city dept social new york municipalities liable execution government policy custom inflicts injury recognizes municipalities although sovereign nevertheless benefit lenient standard immunity private entities yet approach north carolina board dental examiners state agency treated like private actor must demonstrate state actively supervises actions analysis seems predicated assessment varying degrees municipality state agency like north carolina board likely captured private interests today parker immunity never conditioned proper use state regulatory authority contrary columbia omni outdoor advertising refused recognize exception parker cases shown defendants hadengaged conspiracy corruption acted way public interest sherman act said anticorruption statute unwilling omni rewrite parker order reach allegedly abusive behavior city officials essentially done iii decision inconsistent underlying theory parker create practical problems likely effects regulation professions previously noted state medical dental boards staffed practitioners since first created obvious advantages approach reasonable decide individuals best able regulate technical professions practitioners expertise professions staffing state board dental examiners certified public accountants certainly lessen risk actions place dentists public also compromise state interest sensibly regulating technical profession lay people little expertise result today decision may find necessary change composition medical dental boards clear sort changes needed satisfy test adopts faults structure north carolina board active market participants constitute controlling number decisionmakers ante test raises many questions controlling number majority eschew term mean leave open possibility something less majority might suffice particular suppose active market participants constitute voting bloc generally able get way obstructionist minority agency chair empowered set agenda veto regulations active market participant board members withdraw practice short term service typically return practice terms end mean active market participants period service scope market member may participate serving board must market relevant particular regulation challenged merely jurisdiction entire agency result present case different majority board members though practicing dentists provide teeth whitening services orthodontists periodontists like much participation makes person active market answers questions obvious must predict answers order make informed choices constitute agencies suppose worked lower courts federal trade commission ftc approach raises fundamental question inquiry stop examination structure state licensing board asks whether market participants control north carolina board essence asking whether regulatory body captured entities supposed regulate regulatory capture occur many ask whetherthe members board active market participants answer may determining regulatory capture occurred simple task answer provides reason relieving courts obligation make determinations explain appropriate adopt rather crude test capture constitutes holding today decision iv created new standard distinguishing private state actors purposes antitrust immunity new standard true parker doctrine diminishes traditional respect federalism state sovereignty difficult apply therefore respectfully dissent footnotes white history oral dental science america detailing earliest american regulations practice dentistry see shrylock medical licensing america shrylock detailing deterioration licensing regimes century part concerns restraints trade gellhorn abuse occupational licensing chi rev shepard licensing restrictions cost dental care law econ see handler current attack parker brown state action doctrine colum rev collecting cases shrylock johnson chaudry medical licensing discipline america hawker new york cited state laws authorizing boards refuse revoke medical licenses see also douglas noble legislature washington provided licensed persons practice dentistry vested authority license board examiners consisting five practicing dentists see noll reforming regulation wilson politics regulation indeed even charged ftc brought case captured entities jurisdiction see cox nader report federal trade commission posner federal trade commission chi rev