US Supreme Court to review viability of price squeeze claim under section 2 of the Sherman Act | Practical Law

US Supreme Court to review viability of price squeeze claim under section 2 of the Sherman Act | Practical Law

On 23 June 2008, the US Supreme Court agreed to hear the Ninth Circuit´s recent antitrust decision in linkLine Communications v. SBC California, Inc., (503 F.3d 876 (9th Cir. 2007)). At issue is the viability of a price squeeze claim under section 2 of the Sherman Act against vertically integrated local exchange carriers (ILECs). The price squeeze claim in question was defined by the Ninth Circuit as a situation where a vertically integrated company sets its prices at the upstream (or wholesale) level so high that its customers cannot compete with it at the downstream (or retail) level.

US Supreme Court to review viability of price squeeze claim under section 2 of the Sherman Act

by Practical Law
Law stated as at 23 Jun 2008USA (National/Federal)
On 23 June 2008, the US Supreme Court agreed to hear the Ninth Circuit´s recent antitrust decision in linkLine Communications v. SBC California, Inc., (503 F.3d 876 (9th Cir. 2007)). At issue is the viability of a price squeeze claim under section 2 of the Sherman Act against vertically integrated local exchange carriers (ILECs). The price squeeze claim in question was defined by the Ninth Circuit as a situation where a vertically integrated company sets its prices at the upstream (or wholesale) level so high that its customers cannot compete with it at the downstream (or retail) level.