Verizon

Appellants People’s Choice Wireless, Inc., and Cellular Depot, Inc., sued respondent Verizon Wireless (Verizon) for unfair competition pursuant to Business and Professions Code section 17203 on behalf of themselves and similarly situated independent dealers of cellular telephones (collectively, the Independent Dealers). In their first amended complaint (the complaint), the Independent Dealers alleged that Verizon engaged in unfair competition by: (1) refusing to sell popular new cellular telephone models to the Independent Dealers during an extended holdback period; and (2) selling cellular telephones to customers below cost in certain circumstances when the Independent Dealers could not afford to compete. According to the Independent Dealers, the trial court erred when it sustained Verizon’s demurrer without leave to amend. We have reviewed the complaint and the law and find no error.

We affirm.

FACTS

The Complaint

The Independent Dealers alleged: Because cellular telephones are expensive, service providers such as Verizon sell them below cost if a consumer agrees to purchase telephone service for a set period of time, usually one to three years. Similarly, service…