Judge says no monopoly on in-flight Internet prices, tosses case against GoGo

A federal judge threw out an anti-trust case brought by airlines passengers who accuse internet provider GoGo of illegally raising the price of in-flight service to rates as high as $17.95. In a decision issued in San Francisco, US District Judge Edward Chen ruled that GoGo, despite supplying 85% of all internet-equipped airplanes in the US, does not have a monopoly.

The company’s customers include Alaska Airlines, American Airlines, Delta, US Airways, and Virgin America. In throwing out the case, Chen accepted GoGo’s argument that it doesn’t have dominant market share because it covers only 16% of all US airplanes, and it’s possible for the remaining planes, which do not offer Internet, to sign up with a competing service provider. The Internet contracts are sold on airplane-by-airplane basis, and not across entire airlines. The passengers sued GoGo in October, claiming that competitor Row44 charges only $5 for an entire flight of internet service but that airlines can’t drop GoGo because of ten-year contracts that lock them in. They also argue that GoGo’s internet technology is inferior because it relies on ground-to-air tower transmission rather than the satellite service offered by Row44 and Jet Blue’s ViaSat service.