Sister Pipeline Companies Can’t Conspire Despite Regulatory Duty to Operate Separately

Judge Robert Chambers, Southern District of West Virginia, has held that sister gas pipeline companies are a single entity, incapable of conspiring under Section 1 of the Sherman Act.  The plaintiffs alleged that the companies conspired to park gas in the pipeline during periods when prices were low, and that under federal energy regulations, the two pipeline companies were required to operate independently despite their common parent.  The court held that a regulatory duty to operate independently did not affect the antitrust analysis.

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