T-Mobile Sues Starbucks Over Unfair Competition

T-Mobile is seeking unspecified damages against Starbucks for unfair competition.

By: Sara Smith

Published: Jun 19, 2008

Updated: Mar 10, 2010

T-Mobile is seeking unspecified damages against Starbucks for unfair competition.

T-Mobile USA is suing Starbucks Corp for secretly dealing with AT&T to offer free Wi-Fi Internet services in its cafes despite an exclusive agreement.

The lawsuit was filed late Thursday in New York state court where T-Mobile alleges that AT&T and Starbucks Corp are not living up to an agreement the three companies reached over how Starbucks should transfer from its T-Mobile partnership to a new partnership with AT&T.

T-Mobile was originally given the exclusive right to "sell, market and promote its services" in Starbucks stores until those stores were fully converted to the AT&T system.

The coffee chain stores would be converted "on a market-to-market basis" and T-Mobile was to retain the exclusive right to market and sell its Internet services until a market had been fully converted.

{slot15}

"Starbucks and AT&T ... secretly developed a promotional plan under which they would offer &#39free&#39 AT&T/Starbucks Wi-Fi even in stores" that were still reliant on T-Mobile&#39s infrastructure, the lawsuit said.

Therefore, AT&T benefited from the agreement prematurely and at the expense of T-Mobile.

"Our goal is to ensure Wi-Fi access at all Starbucks locations. This is a benefit offered to our Starbucks Card Rewards members as well as AT&T subscribers and steps are being taken to ensure that this access continues," Starbucks spokeswoman Stacey Krum said.

What's new with T-Mobile? Latest News In Mobile

You can share this T-Mobile news story with your friends or family from our Mobile section. This article can be shared through e-mail or sent to online social Web sites including Twitter, Facebook, MySpace and others. You can choose from one of the options below.


Share Article Link:
Digg Windows Live Favorites MySpace Facebook del.icio.us Reddit Buzz Yahoo MyWeb Google Mixx StumbleUpon propeller Twitter

Send Link via Email:
Google Gmail Yahoo Mail Microsoft Live/Hotmail AOL Mail

Welcome!