Say it ain't so: Starbucks charged in unfair coffee competition

The utterly unctuous Starbucks, the place where they burn their beans and charge high prices, is facing an anti-trust battle. If the plaintiff is to be believed, they we can pretty much toss out Starbucks commitment "fair trade" baloney. Wouldn't you think that competition is as important as making sure a Central American farmer gets a "fair" prices for his products. What's Starbucks afraid of?

LOS ANGELES (Reuters) - The owner of a small coffee company sued Starbucks Corp. (SBUX.O: Quote, Profile, Research) on Monday, claiming the coffee shop's anti-competitive business practices put her store out of business.

The suit, which seeks class action status, was filed in Seattle federal court by Penny Stafford, the owner of Belvi Coffee and Tea Exchange Inc.

According to court papers, Starbucks violated federal antitrust laws by leasing prime commercial real estate at above-market prices in return for the exclusive right to sell espresso drinks or specialty coffee in those locations.

A Starbucks spokeswoman said the Seattle-based company was not aware of the complaint and could not provide further comment.

The suit alleges that Belvi Coffee and Tea's efforts to enter such buildings in Seattle and Bellevue, Washington were blocked by Starbucks "through unlawful use and abuse of its monopoly power."

Starbucks is the world's largest coffee shop chain, with more than 12,000 locations in 37 countries. The lawsuit alleges the chain "possesses monopoly power" because it has "at least" a 73 percent market share of the U.S. coffee shop industry.