Gogo Asks Court to Dismiss Class Action Lawsuit

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In-flight Internet provider Gogo Inc. is attempting to dismiss a class action lawsuit accusing the company of creating a monopoly on the industry through unfair airline contracts.

Lead plaintiff James Stewart alleges in the Gogo class action lawsuit, filed in October, that Gogo achieved this alleged monopoly through “a series of long-term exclusive contracts with the major domestic airlines in the United States” that “have the purpose and effect of thwarting competition on the merits of price, and have permitted Gogo to charge supra-competitive prices.”

According to the class action lawsuit, 95 percent of Gogo Internet-enable airplanes are under 10-year contracts with the company, which has allowed Gogo to “likely” control 90 percent of the market, Stewart says.

“Rather than achieving or maintaining its monopoly market power through innovation or competition on the merits… Gogo has achieved or maintained its dominant market power by resorting to anti-competitive agreements with the airlines,” the Gogo class action lawsuit says.

Gogo asked a California federal court on Monday to throw out the proposed class action lawsuit, arguing that the market for in-flight Internet services remains “dynamic and competitive” and that its contracts are not anti-competitive because the deals allow airlines to terminate their contracts with Gogo “whenever a rival offers a superior service or business arrangement.”

“Plaintiff has failed to allege facts showing that: Gogo’s contracts blocked any competitor from entering the market or winning contracts; any portion of the alleged market was foreclosed, let alone a substantial portion; or Gogo has the monopoly power to exclude competition and control prices,” Gogo said.

The Gogo Monopoly Class Action Lawsuit case is Stewart v. Gogo Inc., Case No. 12-cv-05164, U.S. District Court for the Northern District of California. The plaintiffs are represented by Azra Z. Mehdi of The Mehdi Firm and by Roy Arie Katriel of The Katriel Law Firm PLLC.

UPDATE: A federal judge denied Gogo’s motion to dismiss the Gogo Internet Monopoly Class Action Lawsuit on Jan. 30, 2014, ruling that the plaintiff showed enough evidence that a potential monopoly exists.

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