Twombly and the Evolution of Telecom Regulation

The plaintiffs in Twombly v. Bell Atlantic alleged that the nation's largest incumbent telephone service providers violated § 1 of the Sherman Act by conspiring to hinder competition in their regional markets. More specifically, each firm chose not to compete outside of its region (with another incumbent), even though doing so may have been profitable. In May of 2007, the United States Supreme Court ruled 7-2 in favor of the incumbents, effectively striking down the latest antitrust action against the telecommunications industry and raising the pleading standard for future cases.