LinkLine: Little Room Left For Price Squeeze Claims

The Supreme Court ruled last week that "price squeeze" claims cannot be brought under the federal antitrust laws unless the defendant firm has a separate antitrust duty to deal with the plaintiffs in the first place. Pacific Bell Tel. Co. v. LinkLine Communications, Inc., 555 U.S. __ (2009). This ruling overturns long-established appellate court precedent and effectively abolishes price squeeze liability as an independent basis for bringing antitrust claims against dominant vertically integrated firms. The decision also highlights the Supreme Court's recent trend toward giving firms more room under the antitrust laws to take unilateral action against rivals without fear of liability.