Verizon Communications, Inc. v. Trinko: Telecommunications Consumers Cannot Use Antitrust Laws to Remedy Access Violations of Telecommunications Act

RS21723 -- Verizon Communications, Inc. v. Trinko: Telecommunications Consumers Cannot Use Antitrust Laws to Remedy Access Violations of Telecommunications Act

Updated August 1, 2005

Summary

In Verizon Communications, Inc. v. Law Offices of Curtis V. Trinko (540 U.S. 398 2004), the Supreme Court denied the antitrust claim advanced by a consumer of telecommunications services against a local exchange carrier that had previously been subject to regulatory discipline by both the Federal Communications Commission and the New York Public Service Commission. According to the Court, the fact that Verizon had been found to have breached its duty under the Telecommunications Act of 1996 to adequately share its network with telecommunications companies -- including AT&T, which provided service to Trinko -- wishing to provide competitive local exchange services did not provide sufficient basis for finding a violation of the antitrust laws.

Although Congress included "an antitrust-specific savings clause" to emphasize that neither the act nor any amendment to it should "be construed to modify, impair, or supersede the applicability of any of the antitrust laws," "the act does not create new claims that go beyond existing antitrust standards." The three Justices who concurred separately in the judgment would not even have reached the merits of the case, finding instead that Trinko's derivative injury did not afford him the "first step," standing to bring the case. The decision was received unfavorably by both the chairman and ranking minority member of the House Judiciary Committee, who introduced legislation in the 108th Congress to remedy the antitrust defect noted by the Court; and with approval by the chairman of the House Energy and Commerce Committee. This report will be updated to reflect further, significant congressional action.