Losing By Judicial Policymaking: The First Year of the AT&T Divestiture

Abstract

Ten years ago, in the midst of the political flux engendered by President Nixon's resignation and pardon, the Antitrust Division of the U.S. Department of Justice (DOJ) filed suit under Section Two of the Sherman Act challenging American Telephone and Telegraph Company's (AT&T) regulated monopoly. The Division's complaint contended, essentially, that through manipulation of interrelated "bottlenecks," AT&T had unlawfully monopolized the provision of telephone equipment and long-distance services. This extraordinary antitrust litigation against a regulated company advanced inexorably, spanning four Congresses, three Presidents, and two U.S. district court judges.