Nynex Corporation, et al. v. Discon, Incorporated (525 U.S. 128)
U.S. Supreme Court · decided December 14, 1998 · Supreme Court Database (Spaeth)
- Citation
- 525 U.S. 128 · 119 S. Ct. 493
- Decided
- December 14, 1998
- Term
- October Term 1998
- Vote
- 9–0
- Majority author
- Justice Breyer
- Issue area
- Economic Activity
- Disposition
- Vacated and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Breyer delivered the opinion of the Court. In this ease we ask whether the antitrust rule that group boycotts are illegal per se as set forth in Klor’s, Inc. v. Broadway-Hale Stores, Inc., 359 U. S. 207, 212 (1959), applies to a buyer’s decision to buy from one seller rather than another, when that decision cannot be justified in terms of ordinary competitive objectives. We hold that the per se group boycott rule does not apply. í — I Before 1984 American Telephone and Telegraph Company (AT&T) supplied most of the Nation’s telephone service and, through wholly owned subsidiaries such as Western Electric, it also supplied much of the Nation’s telephone equipment. In 1984 an antitrust consent decree took AT&T out of the local telephone service business and left AT&T a long-distance telephone service provider, competing with such firms as MCI and Sprint. See M. Kellogg, J. Thorne, & P. Huber, Federal Telecommunications Law §4.6, p. 221 (1992). The decree transformed AT&T's formerly owned local telephone companies into independent firms. At the same time, the decree insisted that those local firms help assure competitive long-distance service by guaranteeing long-distance companies physical access to their systems and to their local customers. See United States v. American Telephone & Telegraph Co., 552 F. Supp. 131, 225, 227 (DC 1982), aff’d sub nom. Maryland v. United…
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