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Antitrust Keyed to Morgan, 7th Ed.
Pacific Bell Telephone Co. v. Linkline Communications, Inc.
Citation:
555 U.S. 438 (2009)Facts
AT&T owned much of the infrastructure needed to provide DSL service in California, particularly the “last mile” connections to homes and businesses. The plaintiffs were four independent Internet service providers competing with AT&T in the retail DSL market. These ISPs did not own all the necessary facilities to supply DSL service and had to lease DSL transport service from AT&T. AT&T was obligated to provide this wholesale service due to FCC merger conditions, not antitrust law. The plaintiffs alleged that AT&T engaged in anticompetitive conduct by setting high wholesale prices for DSL transport while simultaneously setting low retail prices for its own DSL service, thereby squeezing the plaintiffs’ profit margins and impeding competition in the retail DSL market.
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