In a recent ruling, the 4th US Circuit Court of Appeals has overturned a lower court decision and ruled against Duke Energy in a legal battle with competitor NTE Carolinas II. NTE, based in Florida, accused Duke of engaging in anticompetitive practices to maintain their monopoly in the wholesale power market, specifically in Fayetteville, North Carolina.
The court has ordered the case to be sent back to a trial court, with US District Judge Kenneth Bell no longer overseeing the case. The dispute stems from Duke’s alleged efforts to exclude NTE from competing for Fayetteville’s business, which became available when Duke’s contract with the city expired.
The 4th Circuit opinion highlighted NTE’s claim that Duke acted improperly to retain Fayetteville’s business by preventing NTE from competing for the contract. This behavior allegedly violated the Sherman Act, the country’s first antitrust law passed in 1890. While Duke argued that their actions were legitimate competitive behavior, the court found enough evidence to suggest otherwise and ordered further proceedings.
The court also noted Duke’s change in perspective towards NTE as the smaller company attracted more customers with its cost-effective energy solutions. The decision to terminate an agreement with NTE in favor of a deal with Fayetteville indicates potential anticompetitive behavior by Duke, according to the 4th Circuit opinion.
Ultimately, the case will need to be resolved in trial to determine if Duke’s actions were simply competitive practices or if they were indeed anticompetitive, as alleged by NTE. The ruling highlights the importance of fair competition in the energy market and protecting consumers from unfair monopolistic practices.
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