In the case of Jefferson County Pharmaceutical Association, Inc. v. Abbott Laboratories et al., 1982, the U.S Supreme Court ruled in favor of Abbott Laboratories and other pharmaceutical manufacturers who were accused by retail pharmacies of price discrimination under the Robinson-Patman Act. The plaintiff pharmacies alleged that defendant manufacturers sold drugs at lower prices to hospitals and HMOs than they did to retail pharmacies, which constituted a violation of federal antitrust laws. However, the court held that this differential pricing was not unlawful as it fell within an exception provided for in Section 2(e) of the Act - "meeting competition". This provision allows sellers to reduce their prices when necessary to meet equally low prices offered by competitors without violating anti-discrimination laws.

In the dissenting opinion for Jefferson County Pharmaceutical Association, Inc. v. Abbott Laboratories et al., Justice Powell argued that the majority's decision to uphold a state law regulating drug prices was inconsistent with previous Supreme Court rulings and could potentially undermine free market principles. He contended that the law interfered with interstate commerce by allowing states to regulate prices of out-of-state manufacturers, which he believed violated the Commerce Clause of the Constitution. Furthermore, he expressed concern about potential negative impacts on competition and innovation in pharmaceutical industry due to price regulation imposed by individual states rather than federal government or market forces themselves.