Supreme Court to hear AT&T antitrust case

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The Supreme Court has agreed to hear an antitrust case that alleges ATT squeezed out small ISPs by charging too much for wholesale access to its phone network. The case was heard in the U.S. District Court for the Central District of California and appealed to the U.S. Court of Appeals for the Ninth Circuit. AT&T appealed the case to the Supreme Court, and in May, the solicitor general of the United States filed a brief in support of having it heard there. On Monday, the Supreme Court agreed to hear the case. In 2003, linkLine Communications and other small California ISPs sued predecessors of AT&T in a federal district court in Los Angeles and said they were forcing small competitors out of business by setting wholesale prices too high. "It's one of those cases where the wholesale price is higher than the retail price, which makes competition virtually impossible," said Maxwell Blecher of the law firm Blecher & Collins, which is representing the plaintiffs. The issue is whether this type of dispute, in a regulated industry, is covered by antitrust law. It's also likely the Supreme Court will tackle the question of whether AT&T could violate antitrust law without setting its retail prices below its own cost.
http://www.infoworld.com/article/08/06/23/Supreme_Court_to_hear_ATT_anti...


Supreme Court to hear AT&T antitrust case