[Am-info] Fwd: [CYBERTEL] US Appeals Court reverses decision blocking telecom antitrust complaints

[Gene Gaines]

Perhaps the antitrust environment is changing.

The court decision below appears to open the door to the Bell
companies being liable for antitrust complaints as well as other
legal actions where consumers believe they have been harmed by
the Bell companies.

I am no lawyer, but following this thread of reasoning, if it can
be applied on a more broad basis, then the actions of federal
agencies and more specifically the Telecom Act does not give
companies immunity from antitrust actions.

I hope the court in the Microsoft case reads this decision with
care.

I am aware that it is not a close parallel, but I like the trend!



This is a forwarded message
From: Daniel Berninger <dan@PULVER.COM>
To: CYBERTELECOM-L@LISTSERV.AOL.COM
Date: Thursday, June 20, 2002, 8:10:45 PM
Subject: [CYBERTEL] US Appeals Court reverses decision blocking telecom
         antitrust complaints

=================Original message text===============
Folks,

The United States Court of Appeals for the Second Circuit reversed a lower
court ruling today that had dismissed antitrust claims in the class action
antitrust complaint Law Offices of Curtis V. Trinko vs. Bell Atlantic
Corporation.

The decision directly contradicts the Goldwasser vs. Ameritech ruling that
the Bells maintain gives them an implied antitrust immunity.

See the 2nd circuit opinion case #6 at
http://www.pulver.com/antitrustreport/research.html

The ruling represents a significant boost for the numerous competitor and
customer antitrust complaints against the Bell companies.  The Goldwasser
decision had embraced the notion that the pervasive regulation associated
with Telecom Act precluded antitrust complaints against the Bell companies.

The pervasive regulation argument failed to stop the break up AT&T in the
early 80's, but it had proven successful for the Bell companies until the
Tinko ruling.

Importantly, the ruling affirms the Bell companies won't enjoy antitrust
immunity in conjunction with their success obtaining regulatory relief from
the FCC and Congress.

The press release below outlines the issues and includes quotes from noted
antitrust experts.

Best regards,

Dan

410.279.1220

>>>>>>>>>>>>>>>>>>

pulver.com and Industry Experts Praise Landmark Appeals Court Decision
Allowing Telecom Antitrust Complaints to Proceed

Second Circuit Court of Appeals recognizes right of competitors and
consumers to sue Bell companies for antitrust damages.

NEW YORK--June 20, 2002--Daniel Berninger, Editor of pulver.com Telecom
Antitrust Intelligence Report, praised a decision handed down today by the
United States Court of Appeals for the Second Circuit reversing a lower
court opinion that blocked an antitrust complaint against Verizon (formerly
Bell Atlantic.)

"This represents just the break for Bell company competitors and customers
that seemed long overdue," said Daniel Berninger. "The ruling restores hope
that the Bell companies are not above the law."

The Court denied a motion by Verizon in the class action antitrust complaint
Law Offices of Curtis Trinko vs. Bell Atlantic Corporation, which had argued
pervasive regulation associated with the Telecom Act of 1996 obtained an
implied immunity from antitrust liability.   The decision ends a series of
legal victories the Bell companies have obtained in district courts by
leveraging the Seventh Circuit opinion in Goldwasser vs. Ameritech.

"On quick reading this appears to be a monumental decision which effectively
eviscerates Goldwasser," noted Maxwell Blecher, Partner, Blecher Collins.

"Today's decision reaffirms the applicability of the antitrust laws to the
Bell companies, and emphasizes the continuing importance of those laws to
competition in the telecommunications industry," Rebecca Dick, Of Counsel,
Swidler Berlin Shereff and Friedman, and former Director of Civil Non-merger
Enforcement at the Justice Department's Antitrust Division.

"The Court got it exactly right, and we expect others will follow" observed
Christopher Holt, Senior Vice President and Chief Counsel of CoreComm, which
has its own antitrust suit pending against SBC/Ameritech in Ohio.  "This is
a big win for the competitive industry, and for customers who care about
having local phone choice."

"In addition, the court's broad approach to customers' and competitors'
rights to sue carriers for violations of the Communications Act opens up
other avenues for dealing with ILECs that fail to live up to their
obligations under the law," said Christopher Savage, Partner, Cole Raywid &
Braverman.

The 2nd Circuit Appeals Court ruling and documents for other antitrust cases
are available at http://www.pulver.com/antitrustreport/research.html

An overview of the dispute over the Goldwasser opinion available is at
http://www.pulver.com/antitrustreport/sample.html

Contact:

Daniel Berninger
410.279.1220
dan@pulver.com

About pulver.com Telecom Antitrust Intelligence Report:

The report gathers ideas, opinions, and lessons learned by insiders
regarding litigation between forces of competition and monopoly in
telecommunications.  The report provides a multidisciplinary perspective on
the obstacles to competition, including; legal, technical, and quantitive
analysis, as well as, interviews, industry metrics, and news.  The report
seeks to make transparent the antitrust issues shaping the future of
telecommunications (www.pulver.com/antitrustreport).

==============End of original message text===========



-- 

Gene 
gene.gaines@gainesgroup.com