Supreme Court to review telecoms antitrust case

Reuters

Monday, June 26, 2006; 10:33 AM

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/26/AR2006062600397_pf.html


WASHINGTON (Reuters) - The Supreme Court on Monday agreed to consider an 
appeal by the largest U.S. telephone carriers aiming to dismiss a 
class-action antitrust suit against them.

The high court granted the companies' petition to review an appeals court 
ruling that held the class-action suit filed against Verizon Communications 
Inc., BellSouth Corp., Qwest Communications International Inc. and AT&T 
Inc. could proceed even without evidence to back up claims of an 
anti-competitive conspiracy.

The Supreme Court will hear arguments in the case and then issue a decision 
during its upcoming term, which begins in October.

The lawsuit said the telecommunications companies conspired not to compete 
against one another in their respective geographic markets for local 
telephone and high-speed Internet services and prevented competitors from 
entering those markets.

A federal judge in New York dismissed the case for failing to state a claim 
for which relief could be granted. The judge ruled the lawsuit failed to 
allege sufficient facts from which a conspiracy can be inferred.

But a U.S. appeals court ruled the judge had used the wrong standard in 
reviewing the sufficiency of the allegations and sent the case back for 
further proceedings.

The telecommunications companies appealed to the Supreme Court.

They said the lawsuit under U.S. antitrust law alleges the companies 
engaged in parallel conduct and participated in a conspiracy, but failed to 
include any allegations that would establish the existence of a conspiracy 
under the applicable legal standard.

A number of business groups and companies supported the appeal.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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