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CenturyLink Settles Second Level 3 Deal Term Violation

john.eggerton@futurenet.com (John Eggerton) — Thu, 02 Sep 2021 18:08:30 +0000

CenturyLink (since renamed Lumen) has agreed to pay the Justice Department $275,000 to settle DOJ's complaint stemming from the company's violation of the terms of its acquisition of Level 3.

It is the second such violation, DOJ said, which will file a civil contempt claim in D.C. federal court and at the same time ask the court to accept the settlement, which resolves the claim.

Also Read: CenturyLink, DOJ Settle Level 3 Condition

“CenturyLink is a repeat offender,” said acting assistant Attorney General Richard Powers of the Antitrust Division. “The request for a finding of civil contempt is appropriate because the company violated its amended obligations immediately after the court imposed them. When companies fail to comply with court-ordered obligations, the Antitrust Division will take action to enforce them.”

CenturyLink had violated the 2018 final judgment that paved the way for the Level 3 purchase, then violated the August 2020 settlement of that violation, which is what prompted this week's settlement of the civil contempt claim.

CenturyLink, DOJ Settle Level 3 Condition Violation

john.eggerton@futurenet.com (John Eggerton) — Fri, 14 Aug 2020 19:45:29 +0000

The Justice Department and broadband/telecom company CenturyLink have settled allegations that the company violated the conditions of its acquisition of Level 3.

Specifically, DOJ said CenturyLink had promised not to solicit customers that had switched to assets divested as part of the deal. DOJ said that on more than 70 occasions CenturyLink tried to woo back customers who had chosen to switch to the divestiture buyer in Boise City-Nampa, Idaho.

"When a defendant violates the terms of a settlement decree, it must be held accountable to its obligations to the department and the American consumer,” said Assistant Attorney General Makan Delrahim, who heads the antitrust division. “Today’s motion to amend the Final Judgment ensures that consumers get the benefit of competition otherwise lost by CenturyLink’s acquisition of Level 3 Communications. I also commend CenturyLink for its cooperation in resolving the department’s concerns.”

CenturyLink did not dispute the allegations and agreed to:

1. "extend the non-solicitation period by two years for the Boise MSA;

2. "the appointment of an independent monitoring trustee; and

3. "pay the United States to defray the costs of the department’s investigation of CenturyLink’s violations of the court order."

DOJ has submitted that amended settlement to the U.S. District Court for the District of Columbia, which will have to sign off on the settlement for it to become official.

CenturyLink also agreed to abide by four new provisions in antitrust settlements that make them easier for the Antitrust Division to enforce.

Reports: CenturyLink Nears Level 3 Hookup

Mike Farrell — Fri, 28 Oct 2016 22:24:00 +0000

Competitive local exchange carrier CenturyLink is close to finalizing a deal to purchase Level 3 Communications in a deal that could solidify their stance in the business communications and large enterprise market, according to several reports.

The Wall Street Journal reported Oct. 27 that the two were close to hammering out a deal, which could be announced in the coming weeks. Later, Reuters reported that a deal would value the combined companies at about $50 billion.

Stocks in both companies rose on news of the possible deal. Level 3 shares soared 15% from $46.92 each on Oct. 26 to $54.06 on Oct. 28. CenturyLink’s increase was less dramatic – its shares rose 7.6% from $28.25 on Oct, 26 to $30.39 on Oct. 28.

Monroe. La.-based CenturyLink primarily offers phone service, has about 55 data centers and has also dabbled in the pay TV business with its Prism TV service. Prism TV had about 311,000 customers in the second quarter. The company has also been conducting a pilot for a skinny bundle over-the-top service called Prism Stream, which may benefit from a Level 3 connection.

The Level 3 deal would come on the heels of planned layoffs at the telecom company. In September CenturyLink said it would shed about 8% of its workforce – about 3,500 people – in an effort to cut costs. At the time the company said it was approaching the layoffs on a voluntary basis and hoped to be finished by Dec. 16.

Level 3 gets most of its revenue from the enterprise and business services business, an area that makes up about two-thirds of CenturyLink’s sales, according to reports. Bloomfield, Colo.-based Level 3 is one of the biggest Internet Service Providers in the world but has been shifting its focus toward small and mid-sized businesses of late, according to reports.