Covad is in the business of providing DSL Internet service to consumers in the southern region of the United States. BellSouth is the  telephone company covering the area and also offers DSL Internet service. Covad and BellSouth entered into an agreement whereby Covad would BellSouth’s phone lines used in Covad’s DSL service. Covad alleged that, after the contract was executed, BellSouth engaged in predatory pricing. Covad sued BellSouth for violation of the Sherman Act, claiming that BellSouth’s efforts were an attempt to further a monopoly and squeeze Covad out of the market.

CASE QUESTIONS

1. Who prevails and why?

2. What section of the Sherman Act is at issue here?

3. How should the court apply the statute to this case?