Minn. Dept. of Commerce asked Minn. PUC for up to $200 million in...

Minn. Dept. of Commerce asked Minn. PUC for up to $200 million in civil penalties against Qwest for allegedly making secret “sweetheart” interconnection deals with certain competitors, unlawfully discriminating against other carriers. Commerce Dept. complaint alleged Qwest made secret amendments to interconnection contracts on file at PUC that gave favored CLECs preferential rates, terms and grades of service not offered to other carriers. Commerce Dept. staffers said purpose might have been to buy off CLECs critical of Qwest’s long distance entry and local market activities. Qwest strongly denied charges and said it filed all details of all 150 current CLEC interconnection agreements with PUC as required by rules. Depending on number and duration of alleged offenses, PUC could fine Qwest up to $202.5 million under 1999 state law that prohibits Qwest from engaging in anticompetitive conduct. Law’s penalties apply only to Qwest. CLECs that entered into sweetheart deals wouldn’t face financial penalties.