The U.S. Supreme Court unanimously cleared AT&T of wrongdoing in an anti-trust lawsuit originally filed in 2003 by an Internet service provider that alleged the telco was setting its wholesale Internet access prices too high. The lawsuit, filed by LinkLine Communications against AT&T predecessor SBC's Pacific Bell Telephone unit (yes, that long ago), charged that AT&T priced wholesale capacity too high for buyers of that access--who are also AT&T competitors--to make any money while competing against AT&T's own lower retail access prices.
The Supreme Court decision, which essentially said AT&T was not required to charge more market-friendly wholesale prices, actually reversed an earlier ruling by the 9th Circuit Court of Appeals in San Francisco. However, the Supreme Court also is sending the case to a trial judge, whom it assigned to evaluate whether AT&T's retail Internet access prices were too low. So, basically, the LinkLine case lives on in a different form for now.
- The Associated Press has this story
The Supreme Court agreed last June to review the LinkLine case
Wholesale IP transit prices declined globally last year