The US Supreme Court finds that a firm that sells inputs at the wholesale level and finished goods or services at the retail level cannot be liable for a price squeeze violation (linkLine)

On February 25, 2009, the United States Supreme Court issued an important antitrust ruling in Pacific Bell Telephone Co. v. linkLine Communications, Inc. (No.07-512)(“linkLine”)concerning unilateral pricing decisions. linkLine continues the clarification and narrowing of Section 2 doctrine in the Supreme Court that began with the Brooke Group decision in 1993. At issue in linkLine was whether a firm that sells inputs at the wholesale level and finished goods or services at the retail level can be liable for a “price squeeze” in violation of §2 of the Sherman Act if its pricing at the wholesale and retail levels would leave a rival with inadequate profit