In the case of Bigelow et al. v. RKO Radio Pictures, Inc. et al., the Supreme Court ruled in favor of a group of independent film distributors who alleged that major Hollywood studios were engaging in monopolistic practices that violated antitrust laws. The plaintiffs argued that these studios had conspired to control first-run theaters (theaters which get movies immediately upon release), thereby limiting competition and restricting access for independent films to be shown at prime locations and times. This was seen as an illegal restraint on trade under the Sherman Antitrust Act, which prohibits business activities deemed harmful to consumers or other businesses by reducing competition within markets. The court agreed with this argument, finding evidence supporting claims of conspiracy among major studios including RKO Radio Pictures Inc., Paramount Pictures Corp., Twentieth Century-Fox Film Corp., Warner Bros. Pictures Inc., Loew's Incorporated etc.. They found these companies guilty of monopolizing both distribution and exhibition sectors within the movie industry through their vertically integrated operations - owning production facilities, distribution networks and theater chains. This ruling marked a significant shift towards breaking up Hollywood's studio system monopoly over film distribution channels.

The dissenting opinion in the Bigelow et al. v. RKO Radio Pictures, Inc. et al., case argued that the majority's decision was based on a misinterpretation of the Sherman Act and its application to vertical integration within an industry. The dissent contended that there was no evidence of conspiracy or monopolistic practices by RKO and other defendants as they were merely engaged in normal business operations within their industry sector - film distribution. They further stated that these companies had not restrained trade but rather enhanced it through their actions, which included acquiring theaters to ensure distribution channels for their films – a common practice known as vertical integration prevalent across industries at the time.