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Court OKs antitrust suit against Starbucks

SEATTLE A U.S. District Court judge here reportedly cleared the way on Wednesday for a trial to determine if Starbucks Corp. illegally blocked a small-scale coffeehouse operator from opening stores in the area.

Penny Stafford last year sued the 15,000-unit Seattle-based coffee giant, saying Starbucks violated antitrust regulations by blocking her from opening competing stores in Seattle and Bellevue, Wash., where she already operates a coffeehouse. Stafford contends that Starbucks’ saturation strategy is designed to prevent rival concepts like hers from opening nearby.

In the lawsuit, Stafford argued that she was repeatedly told by leasing agents that Starbucks would be given priority in securing prime locations because of exclusivity agreements.

Stafford seeks unspecified damages and a federal injunction to stop Starbucks from entering into exclusive leasing arrangements with developers. A trial is tentatively set for November 2008.

TAGS: Finance News
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