Attorney General James Wins Case Against Central New York Ski Resort Owner for Illegally Shutting Down Competition

 

Judge Rules Intermountain’s Anticompetitive Tactics Violated Antitrust Law

New York Attorney General Letitia James won her case against Intermountain Management (Intermountain) when a judge ruled the ski resort owner illegally stifled competition after it purchased and shut down Toggenburg Mountain, its main competitor. In October 2022, Attorney General James sued Intermountain, alleging it illegally created a monopoly in the Syracuse market, causing skiers to suffer higher prices and more crowded mountains and facilities due to the lack of competition. In addition, Attorney General James alleged that Intermountain’s “no-poach” provision, which prevented Toggenburg’s owners from hiring Intermountain employees, was anticompetitive and illegal. In a ruling granting the Office of the Attorney General’s (OAG) motion for summary judgment, the court found both of Intermountain’s anticompetitive tactics violated New York’s antitrust law.  

“Syracuse skiing families and workers long benefited from fierce competition among their local ski mountains, but this experience went downhill fast after Intermountain bought Toggenburg,” said Attorney General James. “Intermountain paid a premium price to destroy competition because its owners knew they could raise prices and profit more with a monopoly. Now Intermountain’s anticompetitive scheme is put on ice. I will always take action to protect consumers and workers from corporate monopolies who try to profit by shutting down the competition.” 

In 2021, Intermountain, which owns and operates two ski resorts in the Syracuse area, Labrador and Song Mountains, purchased and immediately shut down its only competitor, Toggenburg Mountain. Intermountain then publicly announced that it would insert a deed restriction barring future buyers from using Toggenburg as a ski resort ever again, ensuring it would be the only ski operator in the Syracuse area. At the same time, Intermountain paid the sellers of Toggenburg to sign a non-competition agreement, prohibiting them from competing within a 30-mile radius for five years. The agreement even prevented the sellers from attempting to hire Intermountain employees. 

In October 2022, Attorney General James sued Intermountain, alleging its tactics illegally stifled competition and created a monopoly in the Syracuse market that harmed consumers. The lawsuit alleged that Intermountain partners Peter Harris and Richard Sykes collaborated on the anticompetitive scheme to buy Toggenburg and establish their monopoly for years, approaching Toggenburg’s owner John Meier repeatedly, inviting him to drinks at private social clubs, meals at local restaurants, and even staging a “faux buy” where they approached him through a third party.  

In a ruling granting OAG’s motion for summary judgment, Judge Robert E. Antonacci II ruled that Intermountain’s acquisition of Toggenburg was an agreement to allocate markets that violated New York’s antitrust law by reducing options for season pass skiers and stifling competition. The court found that Intermountain purchased and shut down Toggenburg to drive up its profits by eliminating choice for consumers. The court also found that the “no-poach” agreement lacked any valid justification, and instead was meant to suppress competition. The court announced that further proceedings would be scheduled to decide the appropriate remedy for Intermountain’s anticompetitive conduct.