Wednesday, March 9, 2005

Covad Advances its Antitrust Suits against Verizon and BellSouth

Covad Communications prevailed in two recent court decisions that allow antitrust suits against Verizon and BellSouth to proceed.

In both suits, Covad alleged that these RBOCs had engaged in concerted campaigns to foreclose competition in the broadband and voice markets in violation of the federal antitrust laws, as well as the Federal Telecommunications Act.

However, Verizon prevailed in a Supreme Court decision last (the Trinko case) and many believed that federal antitrust claims could no longer be brought against incumbent local telephone companies.

Covad said that the Courts of Appeals in both of its lawsuits have now ruled to the contrary and have established that incumbent phone companies can still be held accountable under the antitrust laws. In addition, Covad said its claims for damages for violations of the Telecommunications Act were not in any way affected by the Trinko and can go forward.

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