The U.S. Court of Appeals for the D.C. Circuit has upheld the FCC’s access charge decision ordering several companies (including All American Telephone, Inc., e-Pinnacle Communications, Inc., and Chasecom) to pay $250,000 in damages to AT&T. The companies, which the FCC found had held themselves out as competitive local exchange carriers, were accused of operating alleged “traffic pumping” or “access stimulation” schemes while billing AT&T. The companies had challenged the FCC’s jurisdiction and its ability to award damages. The appeals court found that the FCC did have jurisdiction over the companies’ sham common carrier activities, but it also vacated certain state-law contract determinations that fall outside the FCC’s reach and are still pending at district court.
