Cell Phone Companies Accused of Fixing the Price of Text Messaging

Putative class actions were recently filed in Illinois and Ohio federal courts alleging that the nation’s four leading cell phone companies, AT&T, SprintNextel, T-Mobile, and Verizon have agreed to fix the price of text messages.  The suits followed on the heals of a letter from the chair of the Senate Sub-committee on Antitrust, Herb Kohl, to the heads of the four cell phone companies complaining that the cost of a text message had doubled in the past three years and that the increase could not be justified by increasing costs.  Kohl claimed that the timing and amounts of the increases raised antitrust concern.

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