Antitrust and Trade Regulation Commons^™

Hit And Miss: Leverage, Sacrifice, And Refusal To Deal In The Supreme Court Decision In Trinko, Nicholas Economides

Vanderbilt Journal of Entertainment & Technology Law

Under the rules of the Telecommunications Act of 1996, incumbent local exchange carriers, including Verizon, were obligated to lease parts of their local telecommunications network to any firm, at "cost plus a reasonable profit" prices, that could combine them at will, add retailing services, and sell local telecommunication service as a rival to the incumbent. AT&T, an entrant into the local telecommunications market, leased parts of Verizon's network. Curtis Trinko, a local telecommunications services customer of AT&T, sued Verizon, alleging various anti-competitive actions of Verizon against AT&T, including that Verizon raised the costs of AT&T, its downstream retail rival. The …