Following the news earlier in the week that representatives from the former SmartSky connectivity provider have filed an antitrust lawsuit against Gogo Business Aviation, Gogo has hit back describing the filing as ‘highly inaccurate’ and as a ‘last-ditch attempt’ on behalf of its former rival’s creditors.
The lawsuit could potentially reach $1bn and alleges multiple violations of federal antitrust laws, including the Sherman Act and Clayton Act, as well as North Carolina state tort laws and the Unfair and Deceptive Trade Practices Act, claiming that Gogo engaged in ‘predatory pricing’, ‘misleading advertising’, and ‘exclusive dealing agreements’ to maintain its ‘monopoly position’ in the air-to-ground (ATG) market.
READ: SmartSky shuts down
“SmartSky is pursuing this case to protect innovation as well as to seek justice for unfair business practices,” representatives for that company wrote in a press statement. “The company’s complaint contends that a systematic campaign of misinformation and exclusive dealing arrangements effectively blocked SmartSky’s access to critical distribution channels and created insurmountable barriers to market entry, stifling the innovation and competition customers depend on”.
READ: Gogo to acquire Satcom Direct
This version of events is hotly contested by Gogo. “The complaint is a highly inaccurate representation of Gogo’s behaviour and does not confront the reality that SmartSky failed as a business, despite more than half-a-billion dollars of backing from numerous well-heeled investors,” said Oakleigh Thorne, Executive Chairman, Gogo Business Aviation.
“This is just a last-ditch effort by SmartSky’s creditors to recover some money on what amounts to a bad investment.”
SmartSky abruptly ceased trading in August. At the time, the company did not offer any explanation, simply directing customers and creditors to email an accountancy firm. Prior to that, the two companies had met in court when SmartSky alleged that Gogo ‘infringed’ its rivals’ 5G technology patents. That case is still ongoing, and set for the next hearing in April 2025.
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