Corporate & Securities Law

The Supreme Court, AT&T and Antitrust

By David Fischer

Yesterday, the Supreme Court asked the Solicitor General for the United States’ views on an antitrust case. According to CNN Money:

The Supreme Court on Tuesday asked the Bush administration for its opinion on an antitrust lawsuit several small Internet service providers filed against AT&T Inc.

…

LinkLine Communications Inc. and three other ISPs sued AT&T Inc., then known as SBC Communications, in 2003 for violating antitrust laws by engaging in a so-called ‘price squeeze.’ The price squeeze allegedly occurred when AT&T, which provided the ISPs with wholesale access to its network, left only a slight difference between the wholesale price and its own competing retail Internet service, leaving the ISPs with little room to profit.

AT&T asked a federal district court to dismiss the suit, arguing that antitrust law doesn’t require it to assist its competitors by offering access to its network. The company only provided such access because it was required to do so under telecommunications law, AT&T said in court papers.

The district court and an appeals court ruled against AT&T, allowing the suit to proceed, pending the outcome of AT&T’s appeal to the Supreme Court.

Full post as published by Antitrust Review on January 23, 2008 (boomark / email).