SmartSky Files $1B+ Antitrust Lawsuit Alleging Gogo Business Aviation Acted as an “Abusive Monopolist”
SmartSky Networks, LLC filed a comprehensive antitrust lawsuit against Gogo, Inc. and Gogo Business Aviation, LLC ($GOGO) in the U.S. District Court for the Western District of North Carolina, alleging illegal monopolistic practices in the air-to-ground (ATG) broadband inflight connectivity market for business aviation.
The lawsuit 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 ATG market.
This lawsuit argues that Gogo has been an abusive monopolist that used its entrenched market position to hinder innovation, block competition, and corner the market for ATG in business aviation. The complaint refers to evidence that allegedly demonstrates a clear pattern of anti-competitive behavior that ultimately forced its only ATG competitor out of the market.
The filing contends that SmartSky invented a superior technology, which—for the first time ever—utilized 60 MHz of unlicensed spectrum to deliver high-speed inflight connectivity to business aviation. Despite having viable technology available to consumers, SmartSky argues that it was systematically undermined through a multitude of deceptive practices, including Gogo's misrepresentation of its own technology, the implementation of illicit below-cost pricing strategies, and “vaporware” promises of a future 5G internet solution that has still yet to materialize.
SmartSky is pursuing this case to protect innovation as well as to seek justice for unfair business practices. 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.
According to the filing, these practices resulted in SmartSky's exit from the market in August 2024, despite having raised over $700 million in investor capital and successfully launching its competing network in July 2022. The lawsuit alleges that due to Gogo’s illegal practices, SmartSky was unable to capture more than 2% of the ATG market share before being forced to cease operations despite having a far superior product. SmartSky also argues that without competition, Gogo returned to a 100 percent ATG monopoly position, with its legacy systems as the only ATG solution currently available for business aviation customers in the U.S.
The lawsuit seeks substantial damages potentially exceeding $1 billion. The legal action aims to address the alleged harm to competition and consumers in the aviation connectivity market.
This new Complaint is separate and apart from the Intellectual Property case SmartSky previously filed against Gogo in Delaware. The trial of that case is scheduled to begin in April, 2025.
SmartSky is represented by Rik Tozzi, of Burr & Forman, LLP.
