Seattle Coffee-House Files Monopoly Suit Against Starbucks

SEATTLE, WA --  With most American households having some brand of coffee in their house, it is hard to believe that Starbucks could be sued for coffee monopoly. We know some people love their Starbucks coffee, but a monopoly? Yet take a look at today's news...

An independent specialty coffeehouse owner filed a proposed class action lawsuit today against Starbucks Corporation, claiming the company had a monopoly position in the specialty coffee market and engaged in a range of anti-competitive activities aimed at eliminating competition. Filed in U.S. District Court, the suit alleges that Starbucks has exploited its monopoly power in the specialty coffee retail market to stifle competition through a series of predatory practices including exclusive lease agreements, "cluster bombing" of stores and competitor buy-outs. [via PRNewswire]

Chains that get really big develop strong bargaining power. It would seem that a coffee house franchiser who might vie to be in the same real estate as one from the powerful Starbucks Coffee chain might be declined when against an exclusivity clause.

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