A federal judge in Minneapolis has ordered Qwest to pay a $25.9 million fine imposed by the Minnesota Public Utilities Commission in a dispute over how the telecommunications giant treated its competitors.

The Minnesota PUC fined Qwest last year, saying the Denver-based phone company engaged in secret agreements that gave low rates to some local carriers and hurt others.

In addition to upholding the fine, Judge Ann D. Montgomery on Wednesday ruled Qwest does not have to pay an additional $10 million in restitution to competitors. She said the Minnesota PUC lacked the power to impose that penalty.

"We are pleased with the court's decision concluding that the Minnesota Public Utilities Commission lacks statutory authority to impose equitable relief in the form of restitution," Qwest said in a statement. "The judge correctly applied the law to the facts on this issue."
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