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Antitrust Keyed to Gavil, 5th Ed.
In re Text Messaging Antitrust Litigation
Citation:
630 F.3d 622 (2010)Facts
The plaintiffs alleged that the four defendant wireless carriers, which collectively controlled approximately 90% of the U.S. text messaging market, engaged in a price-fixing conspiracy. According to the complaint, despite steeply falling costs in the industry, the defendants simultaneously increased their prices. The complaint further alleged that the defendants abruptly changed their heterogeneous and complex pricing structures to a uniform pricing structure, and then simultaneously increased their prices by approximately one-third. The plaintiffs also claimed that the defendants belonged to a trade association where they exchanged price information directly at association meetings, and that they participated in an elite “leadership council” within the association that urged members to substitute “co-opetition” for competition. While the complaint lacked direct evidence of an explicit agreement, it relied on these circumstantial allegations to infer the existence of a conspiracy.
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