Pac Bell v. linkLine Case (Viability of price squeeze theory)

In an amicus brief filed today in Pacific Bell Tel. Co. v. linkLine Communications, Inc., the AAI urges the Supreme Court to reject the Department of Justice's (DOJ) invitation to abolish price-squeeze claims as an independent basis for liability under Section 2.   The brief argues that the long-established price-squeeze theory remains sound under the Court’s modern antitrust jurisprudence.   In particular, that the test for liability under the famous Alcoa case does not protect “competitors” at the expense of “competition,” as the DOJ contends, but rather bars a monopolist that operates at two stages of production from foreclosing equally efficient single-stage rivals.  The AAI also urges the Court to dismiss the writ of certiorari as moot.   The brief was written by the AAI’s Director of Legal Advocacy Richard Brunell with assistance from attorney Samuel Simon. 

Read the Brief.