Since the description of the first mouse knockout for an IgG Fc receptor se
ven years ago, considerable progress has been made in defining the in vivo
functions of these receptors in diverse biological systems. The role of act
ivating Fc gamma Rs in providing a critical link between ligands and effect
or cells in type II and type III inflammation is now well established and h
as led to a fundamental revision of the significance of these receptors in
initiating cellular responses in host defense, in determining the efficacy
of therapeutic antibodies, and in pathological autoimmune conditions. Consi
derable progress has been made in the last two years on the in vivo regulat
ion of these responses, through the appreciation of the importance of balan
cing activation responses with inhibitory signaling. The inhibitory FcR fun
ctions in the maintenance of peripheral tolerance, in regulating the thresh
old of activation responses, and ultimately in terminating IgG mediated eff
ector stimulation. The consequences of deleting the inhibitory arm of this
system are thus manifested in both the afferent and efferent immune respons
es. The hyperresponsive state that results leads to greatly magnified effec
tor responses by cytotoxic antibodies and immune complexes and can culminat
e in autoimmunity and autoimmune disease when modified by environmental or
genetic factors. Fc gamma Rs offer a paradigm for the biological significan
ce of balancing activation and inhibitory signaling in the expanding family
of activation/inhibitory receptor pairs found in the immune system.