In re Text Messaging Antitrust Litigation
United States Court of Appeals for the Seventh Circuit
782 F.3d 867 (2015)
A class of plaintiffs alleged that AT&T, Verizon, Sprint, and T-Mobile, which together supplied 90 percent of text-messaging service and shared pricing information at trade-association meetings, conspired to fix text-messaging prices; the plaintiffs pointed to the carriers' simultaneous shift to volume-based pricing, price increases for per-use messages despite falling costs, and an internal T-Mobile email describing a price increase as "colusive [sic] and opportunistic." Having survived an earlier motion to dismiss based on circumstantial evidence, the carriers ultimately won summary judgment after discovery, and the plaintiffs appealed.
Does tacit collusion, also known as conscious parallelism, violate the Sherman Act?