[SOLVED] Pipe fittings join together pipes and help

Pipe fittings join together pipes and help direct the flow of pressurized water in pipeline systems. They are sold primarily to municipal water authorities and their contractors. Although there are several thousand unique configurations of fittings (different shapes, sizes, coatings, etc.), approximately 80% of the demand is for about 100 commonly used fittings.
Fittings are commodity products produced to American Water Works Association (“AWWA”) standards, and any fitting that meets AWWA specifications is interchangeable, regardless of the country of origin.
Certain municipal, state, and federal laws require [government] waterworks projects to use domestic-only fittings. Domestic fittings sold for use in projects with domestic-only specifications command higher prices than imported fittings.
In late 2009, McWane Inc., headquartered in Birmingham, Alabama, was the only supplier of domestic fittings.
Looking to take advantage of the increased demand for domestic fittings prompted by [the passage of the American Recovery and Reinvestment Act of 2009 ARRA, which provided a large infusion of money for waterworks projects that required domestic pipe fittings, Star Pipe Products] decided to enter the market for domestic fittings.
In response to Star’s forthcoming entry into the market, McWane implemented its “Full Support Program” in order “to protect its domestic brands and market position.” McWane informed customers that if they did not “fully support McWane branded products for their domestic fitting and accessory requirements,” they “may forgo participation in any unpaid rebates they had accrued for domestic fittings and accessories or shipment of their domestic fitting and accessory orders of McWane products for up to 12 weeks.”
The FTC issued a complaint charging that McWane’s Full Support Program constituted unlawful maintenance of a monopoly over the domestic fittings market.
The Commission found that the relevant market was the supply of domestically manufactured fittings for use in domestic-only waterworks projects, because imported fittings are not a substitute for domestic fittings for such projects. The Commission noted that this conclusion was bolstered by the higher prices charged for domestic fittings used in domestic-only projects. The Commission also found that McWane had monopoly power in that market, with 90–95% market share and that there were substantial barriers to entry in the form of major capital outlays required to produce domestic fittings.
The Commission [also found] that McWane’s Full Support Program foreclosed Star’s access to distributors for domestic fittings and harmed competition, thereby contributing significantly to the maintenance of McWane’s monopoly power in the market. It noted that *the country’s two largest waterworks distributors (with a combined 60% market share), prohibited their branches from purchasing domestic fittings from Star after the Full Support Program was announced.
Unable to attract [customers], Star was prevented from generating the revenue needed to acquire its own foundry, a more efficient means of producing domestic fittings; thus, its growth into a rival that could challenge McWane’s monopoly power was artificially stunted.
Moreover, the Commission found that McWane’s conduct had an impact on price: after the Full Support Program was implemented, McWane raised domestic fittings prices and increased its gross profits despite flat production costs, and it did so across states, regardless of whether Star had entered the market as a competitor……………………………………………………..

Required:
1. How did McWane’s Full Support Program harm competition? Explain.
2. What did the Federal Trade Commission conclude in this case? What “factual and economic” evidence supported this conclusion?
3. Instead of imposing an exclusivity policy, what action might McWane have taken to benefit its customers and compete with Star?

Question: Pipe fittings join together pipes and help