AT&T faces Supreme Court price fixing trial

Case against telecoms giant will be heard

Iain Thomson in San Francisco

AT&T is facing a trial in the US Supreme Court over alleged antitrust violations concerning access fees to the internet.

The case, Pacific Bell Telephone Company (which became AT&T) versus LinkLine Communications, was brought after local ISPs complained that AT&T was charging too much for wholesale internet connections.

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The ISPs had argued that this made it impossible for them to compete with AT &T's own services.

Maxwell Blecher, a lawyer for LinkLine who was named 1998 Antitrust Lawyer of the Year by the California State Bar, claimed that AT&T set prices so high for outside operators that competition was impossible.

AT&T, meanwhile, has always maintained that its prices are fair and reasonable.

The case against AT&T was initially accepted by the 9th US Circuit Court of Appeals in San Francisco, which said that such price fixing had gone on for 60 years. AT&T has now asked the Supreme Court to rules on the matter.

We are pleased that the US Supreme Court has agreed to hear our appeal

AT&T 

"We are pleased that the US Supreme Court has agreed to hear our appeal," AT &T said in a statement.

AT&T is planning to argue that the case is not covered under existing antitrust legislation and should therefore be dismissed.

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