News

In an antitrust dispute over access to water customers in Northern Virginia, Analysis Group client Fairfax County Water Authority (Fairfax Water) reached a settlement with the City of Falls Church. Fairfax Water alleged that Falls Church had monopolized the market by preventing developers from connecting their projects to public water service provided by Fairfax Water. As part of the Consent Decree, Falls Church agreed to pay Fairfax Water at least $750,000 and, going forward, the two entities will compete for customers in a portion of Fairfax County that previously had been served exclusively by Falls Church.

Fairfax Water counsel Hunton & Williams LLP retained Analysis Group to provide an economic assessment of the antitrust claims against the City of Falls Church and to calculate damages. Analysis Group affiliate Professor John Mayo filed two expert reports and provided deposition testimony and trial testimony in the matter. Professor Mayo found that the City of Falls Church possessed significant monopoly power in the relevant market. He further determined that Falls Church’s alleged actions, including tying the relocations of existing water lines to a promise to use Falls Church’s water services and representing to customers the existence of an exclusive service area, were consistent with those of a monopolist attempting to maintain its monopoly position. Professor Mayo was supported by an Analysis Group team led by Managing Principal T. Christopher Borek and Vice President John M. Browning.