The US Supreme Court overturns the Ninth District Court’s decision adopting a new two-part standard for assessing "price-squeeze" antitrust claims (Pacific Bell/linkLine)

The Supreme Court recently issued a unanimous decision in a notable "price-squeeze" case under § 2 of the Sherman Act involving rival telecom companies. Pacific Bell Tel. Co. v. Linkline Commc'ns, Inc., No. 07-512 (Feb. 25, 2009). The Court held that a vertically integrated company that had no obligation whatsoever under the antitrust laws to provide wholesale services to rivals who compete with it on the retail level does not engage in illegal monopolization by "squeezing out" its competitors by charging them high wholesale prices that render them unable to match the integrated company's prices at the retail level. In so ruling, the Court effectively overturned a long line of cases that had recognized monopolization claims for such price-squeezes. The Court also unanimously clarified

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David S. Turetsky, John F. Collins, A. Paul Victor, Eamon O'Kelly, The US Supreme Court overturns the Ninth District Court’s decision adopting a new two-part standard for assessing "price-squeeze" antitrust claims (Pacific Bell/linkLine), 25 February 2009, e-Competitions Bulletin Telecom & Dominance, Art. N° 41338

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