Federal appeals court says consumers can sue Baby Bells

Fiber Optics Weekly Update, June 28, 2002

A federal appeals court ruled yesterday that consumers can sue the Baby Bells for antitrust violations. The court said, "The antitrust laws serve the purpose of affording the consumer compensation that the 1996 Telecommunications Act does not provide." In antitrust cases plaintiffs can receive triple damages.

The ruling was a blow to the Baby Bells and industry analysts' said this case will likely go to the Supreme Court. The case involved a class-action suit brought against Bell Atlantic on behalf of local telephone customers of Bell Atlantic's competitors. The plaintiffs (the customers) alleged that Bell Atlantic did not give competitors equal access to its network as required by the 1996 Telecom Act, and as a result the competitors customers (the plaintiffs) received inferior service. The Baby Bells are expected to appeal the decision to the Supreme Court.