Supreme Court of the United States

MCI Telecommunications Corp. v. American Telephone & Telegraph Co.

June 17, 1994512 U.S. 218

Summary

The Court, in an opinion by Justice Scalia joined by Chief Justice Rehnquist and Justices Kennedy, Thomas, and Ginsburg, held that the FCC lacked authority under § 203(b)(2) of the Communications Act to make tariff filing optional for all nondominant long-distance carriers. The power to “modify” requirements permits moderate changes, not a fundamental revision of the statutory filed-rate system, and the agency's interpretation therefore warranted no deference. Independently, the broad exemption did not concern “special circumstances or conditions” as required for modifications by general order. The Court affirmed the Court of Appeals. Justice Stevens, joined by Justices Blackmun and Souter, dissented, reasoning that the statute granted flexibility to relax filing requirements in response to competition and that the FCC's reasonable, experience-based interpretation deserved deference. Justice O'Connor did not participate.

Holding

  • Whether § 203(b)(2)'s modification authority authorizes permissive detariffing for all nondominant long-distance carriers.. The FCC may not use its authority to “modify” requirements to eliminate mandatory tariff filing for all nondominant long-distance carriers.
  • Whether the FCC's general exemption applies to “special circumstances or conditions.”. The exemption independently exceeds § 203(b)(2) because circumstances shared by all long-distance carriers except one and approximately 40 percent of long-distance customers are not “special circumstances or conditions.”

Docket 93-356

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