Law Antitrust - Instructor: Dwight Drake Verizon v. Law Office of Curtis Tinker (2004) Basic Facts: Tinker, New York lawyer and AT&T customer, sued Verizon for Sherman 2 violation, alleging he was damaged from poor AT&T telephone service that was caused by Verizon’s failure, as the incumbent local provider, to provide AT&T, a competitor, quality long-distance access support as required by the Telecommunications Act of For such violations, Verizon had paid fines of $3 mill to US Treasury and $10 mill to competitive long distance carriers under FCC consent decree. What was Tinker’s theory under Sherman 2? Was this an essential facilities case? A refusal to deal case? Dist. Ct. dismissed antitrust claim. On what theory did Appeals Ct. reverse? What was issue for Supreme Court?

Law Antitrust - Instructor: Dwight Drake Utah Pie Co. v. Continental Baking Co (1967) Basic Facts: Utah pie dominated Utah frozen pie market until three competitors came to market and sold at prices below what they sold in other markets. Utah pie market share dropped to 45%. Utah Pie sued under Section 2, alleging predatory price discrimination. Did competitors sell below cost? Did competitors have an intention to hurt Utah Pie? Was this a scheme to cause immediate destruction of Utah Pie? Was this competition good for customers? Is it not the goal of antitrust?

Law Antitrust - Instructor: Dwight Drake Transamerica Computer v IBM Corp. (9 th Cir. 1983) Basic Facts: IBM introduced repacked peripheral computer products that were priced much lower than earlier products, but that were above average cost and were profitable. The products hurt independent peripheral providers, who brought a Section 2 claim for predatory pricing. District court dismissed case on theory that prices above average cost are per se legal. What was issue before appellate court? What test did Plaintiff want? What is difference between average cost, average variable cost and marginal cost?