Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Maryland Challenges Atlantic Coast Conference’s Exit Fee on Antitrust Grounds, (Jan 21, 2013)

Maryland Attorney General Douglas F. Gansler has filed suit in Prince George’s County Circuit Court on behalf of the Board of Regents of the University System of Maryland and the University of Maryland alleging that the fee the Atlantic Coast Conference (ACC) charges to schools that withdraw from the conference constitutes an illegal restraint of trade in violation of Maryland antitrust law, the Office of the Attorney General has announced.

In a separate action, the Attorney General moved to dismiss a case filed by the ACC in North Carolina state court, arguing that the North Carolina court does not have jurisdiction over the state of Maryland and its universities.

The Attorney General’s action responds to the ACC’s attempt to enforce a $52.26 million withdrawal penalty purportedly pursuant to the ACC’s constitution through the North Carolina court proceeding. The University of Maryland announced in November 2012 its intent to join the Big Ten Conference beginning in 2014.

“Our lawsuit calls the ACC's ‘exit fee’ what it really is - an antitrust violation and an illegal penalty,” said Attorney General Gansler. “Our motion in North Carolina will ensure that a Maryland court will rule on the case.”

The Attorney General’s complaint asserts claims for violations of Maryland’s antitrust law, breach of contract, and tortious interference with prospective economic advantage. The Attorney General seeks an injunction against enforcement of the fee, a declaratory judgment finding the fee unlawful, and an award of treble damages under Maryland antitrust law.

News: Antitrust MarylandNews